Local equities trade lower in late afternoon session

Local equities were trading lower with cut of above half a percent in late afternoon session. Bankex, Telecom and Metal counters were on the priority list of the sellers. Sentiments on the street remain weakened with a private report that India is among the few major nations among emerging and developing economies with higher inflation in October 2020 compared to December 2019 (pre-Covid levels). Also, among these nations, the rise in core inflation is the highest in India. Investors maintained cautious approach despite Former chief economic adviser Arvind Virmani’s statement that India’s Gross domestic product (GDP) is likely to contract 7.5 percent in the current fiscal (FY21) but will see a double-digit growth in 2021-22. Sector wise, aviation sector remained in focus after data from industry regulator DGCA has showed that Domestic air traffic jumped by 33.67 percent month-on-month in October 2020, continuing on a gradual but steady rebound after flights resumed in May after the lockdown. It showed that 52.71 lakh people took to the air in October, compared to 39.43 lakh in September. The growth rate in September was a tad higher at 39 percent.

On the global front, Asian markets are trading mixed as a surge in coronavirus infections coupled with concerns about new lockdowns and restrictions in the U.S. and Europe offset additional positive developments on the vaccine front. European markets were trading lower.

The BSE Sensex is currently trading at 43939.64, down by 240.41 points or 0.54% after trading in a range of 43821.39 and 44230.00. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.02%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Utilities up by 2.27%, Consumer Durables up by 2.13%, Power up by 1.69%, FMCG up by 1.06% and Oil & Gas was up by 0.76%, while Bankex down by 1.94%, Telecom down by 0.42%, Metal down by 0.36%, Basic Materials down by 0.22% and TECK was down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 6.02%, Titan Company up by 3.93%, NTPC up by 2.94%, ITC up by 2.74% and Bajaj Finserv up by 2.69%. On the flip side, SBI down by 3.73%, ICICI Bank down by 3.11%, Ultratech Cement down by 2.52%, Axis Bank down by 2.30% and HDFC Bank down by 2.09% were the top losers.

Meanwhile, credit rating agency, Moody's Investors Service in its latest report has upgraded India growth forecast to (-) 10.6 per cent for the current fiscal, from its earlier estimate of (-) 11.5 per cent.

As per the report, the latest measures aim to increase the competitiveness of India's manufacturing sector and create jobs, while supporting infrastructure investment, credit availability and stressed sectors. Besides, for next fiscal 2021-22, the rating agency projected India to grow at 10.8 per cent, as against the previous estimate of 10.6 per cent.

Moody's also noted that India's economic growth is likely to settle around 6 per cent in the medium term. It, however, said that consumer confidence in India remains relatively low amid an elevated number of daily new coronavirus cases, although this has come down from a peak in September.

The CNX Nifty is currently trading at 12872.25, down by 66.00 points or 0.51% after trading in a range of 12835.60 and 12963.00. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 5.91%, Titan Company up by 3.93%, NTPC up by 2.89%, ITC up by 2.66% and Bajaj Finserv up by 2.38%. On the flip side, SBI down by 4.07%, Coal India down by 3.82%, ICICI Bank down by 3.21%, Ultratech Cement down by 2.55% and Axis Bank down by 2.44% were the top losers.

Asian markets are trading mixed, Hang Seng decreased 187.32 points or 0.71% to 26,356.97, Nikkei 225 slipped 93.80 points or 0.36% to 25,634.34, Taiwan Weighted dropped 50.86 points or 0.37% to 13,722.43 and Straits Times was up by 0.70 points or 0.03% to 2,787.89. On the flip side, KOSPI rose 1.78 points or 0.07% to 2,547.42, Shanghai Composite gained 15.79 points or 0.47% to 3,363.09 and Jakarta Composite was up by 36.54 points or 0.66% to 5,594.06.

European markets were trading lower, UK’s FTSE 100 decreased 46.00 points or 0.72% to 6,339.24, France’s CAC decreased 30.27 points or 0.55% to 5,481.18 and Germany’s DAX was up by 82.83 points or 0.63% to 13,119.06.