Equity markets trade marginally in green

Indian equity markets rebounded in positive territory in late afternoon session and currently trading marginally higher. Traders took support, as industrial production, measured on the basis of Index of Industrial Production (IIP), grew slightly by 0.2 per cent in September 2020 with higher output of mining and power generation sectors. The IIP had contracted by 4.6 per cent in September 2019, while 7.36 per cent contraction posted in August 2020. Some optimism also came after Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on November 19. RBI said that the decision was taken after a review of the current liquidity and financial conditions.

On the global front, Asian markets were trading mixed after markets in the United States and Europe sold off on concerns over rising coronavirus infections. European markets were trading mostly in red as excitement over the Covid-19 vaccine falls.

The BSE Sensex is currently trading at 43395.20, up by 38.01 points or 0.09% after trading in a range of 43053.37 and 43522.25. There were 16 stocks advancing against 12 stocks declining on the index, while 2 stocks remain unchanged.

The broader indices were trading in green; the BSE Mid cap index gained 0.67%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.12%, Metal up by 1.07%, Realty up by 1.06%, Energy up by 0.97% and Consumer Discretionary was up by 0.79%, while Capital Goods down by 0.58%, Telecom down by 0.30%, Industrials down by 0.27%, TECK down by 0.14% and FMCG was down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.14%, Bajaj Finance up by 1.74%, Axis Bank up by 1.28%, ICICI Bank up by 1.09% and Reliance Industries up by 1.08%. On the flip side, Larsen & Toubro down by 2.56%, HDFC down by 1.25%, Bharti Airtel down by 0.77%, HDFC Bank down by 0.71% and TCS down by 0.56% were the top losers.

Meanwhile, as part of Government of India’s stimulus to the economy, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman has unveiled 12 key measures under AatmaNirbhar Bharat 3.0. The net stimulus announced amounts to Rs 2.65 Lakh crore.

AatmaNirbhar Bharat Rozgar Yojana, a new scheme to incentivize job creation during COVID-19 recovery has been launched. If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees. Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.

Besides, 10 more Champion Sectors will be covered under the Production Linked Incentives Scheme to help boost competitiveness of domestic manufacturing. This will give a big boost to economy, investment, exports and job creation. To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%. It will also extend to ongoing contracts and Public Sector Enterprises.

The CNX Nifty is currently trading at 12702.80, up by 12.00 points or 0.09% after trading in a range of 12607.70 and 12735.95. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 6.86%, Coal India up by 2.46%, Divis Lab up by 2.38%, Bajaj Finserv up by 2.27% and Bajaj Finance up by 1.81%. On the flip side, Tata Motors down by 2.71%, Larsen & Toubro down by 2.51%, HDFC down by 1.31%, HDFC Life Insurance down by 1.25% and Bharti Airtel down by 0.98% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 135.01 points or 0.53% to 25,385.87, Shanghai Composite declined 28.58 points or 0.86% to 3,310.10, Hang Seng decreased 12.52 points or 0.05% to 26,156.86 and Straits Times was down by1.44 points or 0.05% to 2,710.46. On the flip side, Jakarta Composite soared 2.46 points or 0.05% to 5,461.06, KOSPI rose 18.25 points or 0.74% to 2,493.87 and Taiwan Weighted was up by 51.55 points or 0.39% to 13,273.33.

European markets were trading mostly in red, UK’s FTSE 100 decreased 34.37 points or 0.54% to 6,304.57 and Germany’s DAX was down by 17.19 points or 0.13% to 13,035.76. On the flip side, France’s CAC was up by 6.66 points or 0.12% to 5,369.23.