Local indices remain in green terrain in morning deals

Indian equity benchmarks continued to trade in green terrain in morning deals, led by positive sentiments in the broader Asian markets. Sentiments remained positive with a private report that the Indian economy is seen recovering faster than expected and the Reserve Bank is likely to have come to an end of the rate easing cycle. Appreciation in the rupee against the US dollar too added to the momentum. Indian rupee is currently trading at 74.62 against the US dollar, registering a surge of 13 paise over its previous close. However, gains remain capped as the Reserve Bank of India (RBI) showed India's services exports in September fell 1.4 per cent to $17.29 billion. The services exports (receipts) in September 2019 stood at $17.54 billion. Market participants also took a note of Fitch Solutions’ report that India's third tranche of stimulus measures (Stimulus 3.0) should support economic rebound over the coming quarters but the actual fiscal impact is difficult to ascertain.

On the global front, Asian markets were trading mostly in green following the record closing highs overnight on Wall Street after Moderna said data from a late-stage trial showed its coronavirus vaccine candidate was 94.5 percent effective in preventing infection. Back home, stocks related mining industry remained in focus with report that the Centre is planning to come out with the proposed mining reforms in a month or so and the auction of mineral blocks will kick start two to three months after the amendments take place. Majority of power stocks were trading in green as the power ministry data showing that India's power consumption grew 7.8 percent to 50.15 billion units (BU) in the first half of November this year, showing rise in economic activities. Power consumption in the country was recorded at 46.52 BU during November 1-15 last year.  

The BSE Sensex is currently trading at 43884.18, up by 246.20 points or 0.56% after trading in a range of 43851.37 and 44161.16. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.71%, while Small cap index was up by 0.41%.

The top gaining sectoral indices on the BSE were Metal up by 2.42%, Capital Goods up by 1.90%, Industrials up by 1.54%, Basic Materials up by 1.42% and Telecom up by 1.22%, while Oil & Gas down by 0.49%, IT down by 0.36%, Healthcare down by 0.24%, TECK down by 0.21% and FMCG down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 6.13%, SBI up by 2.96%, HDFC Bank up by 2.25%, Larsen & Toubro up by 2.16% and Indusind Bank up by 1.53%. On the flip side, HCL Technologies down by 1.13%, NTPC down by 1.04%, Bajaj Auto down by 0.99%, ICICI Bank down by 0.76% and Infosys down by 0.72% were the top losers.

Meanwhile, Coal and Mines Minister Pralhad Joshi has said that the Centre is planning to come out with the proposed mining reforms in a month or so and the auction of mineral blocks will kickstart two to three months after the amendments take place. The mines ministry had earlier sought suggestions from the general public, mining industry and other stakeholders on the proposed reforms in the Mines and Minerals (Development and Regulation) Act, 1957.

He said the government is looking into the feedback it has received on the proposed reforms and stressed that the Centre wishes to auction at least 500 mineral blocks in the coming two to three years. The slew of reform proposals include amending the contentious provisions of 10A(2)(b) and 10A (2)(C) of the MMDR Act, a move that would pave the way for auctioning of around 500 potential leases stuck in legacy issues now.

Section 10A(2)(b) deals with leases where reconnaissance permit or prospecting licence were granted while 10A(2)(c) relates to grant of mining leases. He said there is mixed opinion on 10A(2)(b) and 10A (2)(C) of the Act and stressed that it does not want to go into the details on the same.

The CNX Nifty is currently trading at 12840.55, up by 60.30 points or 0.47% after trading in a range of 12838.10 and 12934.05. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 6.50%, Tata Motors up by 3.33%, SBI up by 2.72%, HDFC Bank up by 2.29% and Larsen & Toubro up by 2.07%. On the flip side, BPCL down by 3.65%, Hero MotoCorp down by 2.54%, Indian Oil Corporation down by 1.33%, Dr. Reddys Lab down by 1.26% and HCL Technologies down by 1.17% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 115.37 points or 0.45% to 26,022.30, Taiwan Weighted strengthened 72.92 points or 0.54% to 13,624.75, Jakarta Composite soared 54.31 points or 0.99% to 5,549.18, Hang Seng increased 28.72 points or 0.11% to 26,410.39, Straits Times advanced 28.57 points or 1.04% to 2,776.57 and KOSPI rose 7.64 points or 0.3% to 2,550.67.

On the flip side, Shanghai Composite declined 6.65 points or 0.2% to 3,340.32.