Benchmarks trim some gains in late afternoon session

The Indian equity benchmarks trimmed some of their gains in late afternoon session, as 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. However, downside remained capped as traders took support after India’s service sector signalled solid expansion in the month of October, as the relaxation of COVID-19 restrictions enabled to secure new work and lift business activity. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 54.1 in October from 49.8 in September. Traders were seen piling up positions in Energy, IT and TECK sector while selling was witnessed in Realty, PSU and Metal sector stocks. 

On the global front, Asian markets are trading mostly in green along with major U.S. indices futures swinging wildly amid a tight race in the U.S. presidential election. However, European markets were trading mostly in red after Donald Trump prematurely claimed he had won the US election despite millions of votes remaining uncounted in a tight race.

The BSE Sensex is currently trading at 40506.70, up by 245.57 points or 0.61% after trading in a range of 40076.47 and 40660.22. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.15%, while Small cap index was up by 0.21%.

The top gaining sectoral indices on the BSE were Energy up by 2.58%, IT up by 1.80%, TECK up by 1.46%, Healthcare up by 1.20% and Capital Goods was up by 0.80%, while Realty down by 2.14%, PSU down by 0.99%, Utilities down by 0.97%, Metal down by 0.84% and Power was down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 4.71%, Indusind Bank up by 3.81%, Reliance Industries up by 3.42%, Infosys up by 2.81% and Tech Mahindra up by 1.87%. On the flip side, ICICI Bank down by 2.14%, Power Grid down by 2.05%, HDFC down by 1.95%, Axis Bank down by 1.81% and NTPC down by 1.22% were the top losers.

Meanwhile, India’s service sector signalled solid expansion in the month of October, as the relaxation of COVID-19 restrictions enabled to secure new work and lift business activity. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 54.1 in October from 49.8 in September. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - surged to  58.0 in October from 54.6 in September.

The report also noted increase in new work intakes, on the back of successful marketing efforts and strengthening demand. The upturn in bookings was solid and ended a seven-month sequence of contraction. The domestic market was the key source of new business gains, as new orders from abroad declined further. The deterioration in international demand for Indian services was the slowest since March, but nevertheless sharper than any recorded prior to the COVID-19 outbreak.

Besides, amid reports of workers on leave failing to return and difficulties in hiring staff due to the coronavirus disease 2019, services employment decreased again in October. The pace of job shedding was solid and matched that recorded in September. Furthermore, payroll numbers contracted across the five monitored sub-sectors. As a result of falling employment and rising orders, backlogs of work increased. Despite being solid, the overall rate of accumulation softened to a four-month low.

On the price front, input costs increased in four of the five monitored categories, the exception being a stabilisation at Information & Communication firms. Some service providers lifted their fees amid the pass-through of rising cost burdens to their clients, but the vast majority of firms left their prices unchanged from September. As a result, the overall rate of charge inflation was marginal and the slowest in the current three-month period of increases. Moreover, optimism towards the year-ahead outlook for output strengthened.

The CNX Nifty is currently trading at 11875.70, up by 62.20 points or 0.53% after trading in a range of 11756.40 and 11920.70. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 4.40%, Indusind Bank up by 3.89%, Reliance Industries up by 3.17%, Divis up by 2.86% and Infosys up by 2.73%. On the flip side, UPL down by 3.61%, Hindalco down by 2.34%, Power Grid down by 2.28%, ICICI Bank down by 2.04% and HDFC down by 2.01% were the top losers.

European markets were trading mostly in red, UK’s FTSE 100 decreased 1.35 points or 0.02% to 5,785.42 and Germany’s DAX decreased 77.78 points or 0.64% to 12,011.20. On the flip side, France’s CAC increased 13.59 points or 0.28% to 4,819.20.

Asian markets are trading mostly in green, Nikkei 225 surged 399.75 points or 1.72% to 23,695.23, Shanghai Composite gained 6.37 points or 0.19% to 3273.43, KOSPI rose 14.01 points or 0.60% to 2361.32, Hang Seng decreased 53.59 points or 0.21% to 24,886.14, Taiwan Weighted strengthened 131.89 points or 1.04% to 12766.86 and Straits Times was up by17.53 points or 0.7% to 2,514.75. On the flip side, Jakarta Composite was down by 54.25 points or 1.05% to 5170.82.