Markets remain subdued in afternoon trade

Indian equity benchmarks continued to show sluggish trend in afternoon session, with Sensex and Nifty trading below their psychological levels of 44,500 and 13,100, respectively. Selling in banking and IT counters kept the markets in red terrain. The sentiments were under pressure as ICRA in its latest report has said that debt resolution through the insolvency and bankruptcy code (IBC) and the resultant realisation for financial creditors has taken a hit so far this fiscal due to the pandemic that led to suspension of fresh proceedings. Broader markets, however, outperformed benchmarks as traders took some support with report that the Organization for Economic Co-operation and Development (OECD) has raised prospects of India’s economy by pegging contraction at 9.9 per cent, against 10.2 per cent it projected in September.

On the global front, Asian markets were trading mostly higher amid growing progress over a coronavirus vaccine to aid a swift global economic recovery. Back on street, the BSE Sensex is currently trading at 44491.10, down by 164.34 points or 0.37% after trading in a range of 44408.98 and 44729.64. 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 0.46%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Realty up by 2.59%, Metal up by 2.53%, Oil & Gas up by 1.61%, Utilities up by 1.39% and PSU was up by 1.32%, while Bankex down by 0.76%, IT down by 0.45%, TECK down by 0.40% and Healthcare was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.35%, Asian Paints up by 2.89%, Bajaj Auto up by 2.29%, Titan Company up by 2.02% and ITC was up by 1.70%. On the flip side, HDFC Bank down by 1.60%, HDFC down by 1.38%, ICICI Bank down by 1.28%, Kotak Mahindra Bank down by 1.23% and Tech Mahindra was down by 1.14% were the top losers.

Meanwhile, indicating the beliefs of investors in the strength and resilience of Indian economy, the country’s growth story continues to expand with increasing foreign portfolio investment (FPI), foreign direct investment (FDI) and Corporate Bond Market flows.

As per the report released by Ministry of Finance, the last two months, i.e October and November 2020, have witnessed a significant resurgence in FPI inflows driven primarily by equity inflows resulting in the highest ever FPI inflows for a month for India. As of November 28, 2020, FPI inflows stood at Rs 62,782 crore. Of this, equity inflows amounted to Rs 60,358 crore while FPI net investment in debt and hybrid was to the tune of Rs 2,424 crore.

Further, total FDI inflows into India during the second quarter of financial year 2020-21 (July 2020 to September 2020) have been $28,102 million, out of which FDI equity inflows were $23,441 million or Rs. 174,793 crore. This takes the FDI equity inflows during the financial year 2020-21 up to September 2020 to $30,004 million which is 15% more than the corresponding period of 2019-20. The report further noted that in H1 FY21, the total corporate bond issuances amounted to Rs. 4.43 lakh crore, 25% higher than Rs. 3.54 lakh crore in the same period last year.

The CNX Nifty is currently trading at 13083.75, down by 25.30 points or 0.19% after trading in a range of 13053.20 and 13128.50. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 7.72%, Indian Oil Corporation up by 3.44%, Tata Steel up by 3.42%, Adani Ports & SEZ up by 3.00% and Asian Paints was up by 2.96%. On the flip side, Shree Cement down by 1.70%, HDFC Bank down by 1.62%, Britannia Industries down by 1.44%, HDFC down by 1.38% and Kotak Mahindra Bank was down by 1.27% were the top losers.

Asian markets were trading mostly higher; KOSPI rose 41.65 points or 1.58% to 2,675.90, Shanghai Composite gained 1.53 points or 0.04% to 3,453.47, Taiwan Weighted strengthened 103.47 points or 0.75% to 13,989.14, Nikkei 225 surged 13.44 points or 0.05% to 26,800.98 and Jakarta Composite was up by 52.62 points or 0.92% to 5,777.36.

On the flip side; Hang Seng decreased 12.61 points or 0.05% to 26,555.07 and Straits Times was down by 4.82 points or 0.17% to 2,809.30.