Indices add gains in afternoon session

Equity parameters add gains in afternoon session as India’s services sector, hit severely by the over two-month long pandemic-induced lockdown, posted expansion in October for the first time since February supported by improved market conditions, with the purchasing managers' index (PMI) for services rising to 54.1 from 49.8 in September. Adding optimism, Finance Secretary Tarun Bajaj stated that Indian economy is recovering fast and will soon be back on rails as all the parameters have started showing improvement. He said ‘we are actually seeing an improvement in all parameters generally and we are expecting further improvement in the month of November and this should continue. Hopefully the economy should be back on rails and it is moving much faster than what had been anticipated by a lot of experts and economists’. Meanwhile, early trends showed Democratic candidate Joe Biden racing ahead of Republican Donald Trump in the US presidential elections. Buying in Energy, IT and TECK stocks helped markets to trade higher. Besides, broader indices were also trading in green, supporting their larger peers.

On the global front, Asian markets were trading mostly higher as traders tracked results of the US presidential election, but investors were on edge over worries that the outcome might not be as clear-cut as hoped. Back on street, in scrip specific development, Zee Entertainment Enterprises gained despite reporting 77% fall in Q2 consolidated net profit and  Reliance Capital surged after inviting bids for sale of subsidiaries.

The BSE Sensex is currently trading at 40577.23, up by 316.10 points or 0.79% after trading in a range of 40107.96 and 40660.22. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were Energy up by 2.88%, IT up by 2.58%, TECK up by 2.19%, Healthcare up by 1.55% and FMCG was up by 0.85%, while Realty down by 1.48%, Bankex down by 0.96%, Utilities down by 0.81%, Power down by 0.67% and PSU was down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 6.08%, Indusind Bank up by 3.77%, Reliance Industries up by 3.62%, Infosys up by 3.32% and TCS was up by 2.24%. On the flip side, Axis Bank down by 3.42%, ICICI Bank down by 2.97%, Power Grid Corporation down by 2.42%, HDFC down by 2.34% and Larsen & Toubro was down by 0.62% were the top losers.

Meanwhile, Commerce Ministry in its latest data has showed that India’s merchandise exports fell by 5.4 percent to $24.82 billion in October 2020 as compared to $26.23 billion in the same month a year ago, on account of dip in shipments of petroleum products, gems and jewellery, leather, and engineering goods. Exports during April- October 2020-21 were $150.07 billion, exhibiting a negative growth of 19.05 percent over the same period last year. Trade deficit, gap between imports and exports, narrowed to $8.78 billion in October 2020 from $11.76 billion a year ago.

In October 2020, the value of non-petroleum exports was $23.21 billion, registering a positive growth of 1.84% over October 2019. The value of non-petroleum and non-gems and jewellery exports in October 2020 was $20.28 billion, as compared to $ 19.07 billion in October 2019, registering a positive growth of 6.34%. The cumulative value of non-petroleum and non-gems and jewellery exports in April-October 2020-21 was $124.79 billion, as compared to $137.72 billion for the corresponding period in 2019-20, exhibiting a decrease of 9.39%.

On the other hand, the value of India’s merchandise imports in October 2020 was $33.6 billion, as compared to $37.99 billion in October 2019, a decline of 11.56%. Merchandise imports during April-October 2020-21 were $182.29 billion, as compared to $286.07 billion during the same period last year, exhibiting a negative growth of 36.28%. In October 2020, Oil imports were $5.98 billion, as compared to $9.73 billion in October 2019, a decline by 38.52%. Oil imports in April-October 2020-21 were $37.84 billion, as compared to $74.93 billion, showing a decline of 49.5%.

Non-oil imports in October 2020 were estimated at $27.62 billion, as compared to $28.26 billion in October 2019, showing a decline of 2.26%. Non-oil imports in April-October 2020-21 were $144.45 billion, as compared to $211.14 billion, registering a decline of 31.59% during the same period of the last year. Non-oil, non-GJ (gold, silver &Precious metals) imports were $22.83 billion in October 2020, recording a negative growth of 8.31%, as compared to non-oil and non-gold imports of $24.9 billion in October 2019. Non-oil and non-gold imports were $126.97 billion in April-October 2020-21, recording a negative growth of 29.28%, as compared to non-oil and non-gold imports of $179.55 billion in April-October 2019-20.

The CNX Nifty is currently trading at 11894.65, up by 81.15 points or 0.69% after trading in a range of 11777.70 and 11920.70. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 5.70%, Reliance Industries up by 3.96%, Indusind Bank up by 3.93%, Infosys up by 3.04% and Wipro was up by 2.99%. On the flip side, Axis Bank down by 3.53%, ICICI Bank down by 2.74%, Power Grid Corporation down by 2.39%, UPL down by 2.37% and HDFC was down by 2.16% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 399.75 points or 1.72% to 23,695.23, Straits Times advanced 19.78 points or 0.79% to 2,517.00, Hang Seng increased 73.51 points or 0.29% to 25,013.24, Taiwan Weighted strengthened 131.89 points or 1.04% to 12,867.90, KOSPI rose 14.01 points or 0.6% to 2,357.32 and Shanghai Composite was up by 6.99 points or 0.21% to 3,278.06. On the other hand, Jakarta Composite was down by 23.72 points or 0.46% to 5,135.73.