Benchmarks trade higher with notable gains in early deals

Indian equity benchmarks made positive start on Friday amid robust foreign fund inflows. Markets are trading higher with notable gains of over half a percent each in early deals on account of buying in Oil & Gas, PSU and Metal stocks. Investors are eyeing the industrial production and inflation data to be out later in the day. Some support came in as terming India as an attractive destination for investments, Union Minister Nitin Gadkari urged investors to tap the vast opportunities it offers and get good returns at a time when the whole world is finding an alternative destination for investment in the wake of COVID-19 pandemic. Traders took note of a private report that the handsome 25 per cent rise in corporate profits in the September quarter amid a sharp contraction in GDP was on the back of wage squeezes, leading to rise in inequalities in India. Meanwhile, on Thursday, India reported 34,666 fresh Covid-19 cases. Its case tally now stands at 9,796,992. The country's death toll has mounted to 142,222.

On the global front, Asian markets were trading mixed following the lackluster cues overnight from Wall Street with investors cautious amid lingering uncertainty about a new US fiscal stimulus bill. Worries about the surging coronavirus cases worldwide also weighed on the markets. Back home, telecom stocks were in focus as the Department of Telecommunications (DoT) is considering holding two spectrum auctions in 2021, starting with the sale of 4G airwave licences, which are due to expire next year. In scrip specific development, TVS Motor Company rallied as the members of the family holding shares in various TVS Group companies have agreed to rearrange their stakes.

The BSE Sensex is currently trading at 46236.81, up by 276.93 points or 0.60% after trading in a range of 46024.76 and 46247.43. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.63%, while Small cap index was up by 1.02%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.12%, PSU up by 1.93%, Metal up by 1.36%, Basic Materials up by 0.95%, Utilities up by 0.94%, while Power down by 0.19%, IT down by 0.04% were the only losing indices on BSE.

The top gainers on the Sensex were ONGC up by 6.17%, SBI up by 1.87%, NTPC up by 1.65%, Tata Steel up by 1.55% and Bajaj Finance up by 1.41%. On the flip side, Infosys down by 0.51%, Tech Mahindra down by 0.45% and Asian Paints down by 0.02% were the few losers.

Meanwhile, terming India as an attractive destination for investments, Union Minister Nitin Gadkari has urged investors to tap the vast opportunities it offers and get good returns at a time when the whole world is finding an alternative destination for investment in the wake of coronavirus disease (covid-19) pandemic. He also said the government has initiated a plethora of initiatives towards self-reliance as per the vision of Prime Minister Narendra Modi making investment procedure transparent and hassle-free.

Gadkari said 'we need liquidity in the market. India is an attractive destination for investments. Our MSMEs are doing excellent job. You can bring your technology to India. You can make joint ventures, you can invest in Indian industry... there is a huge potential. It is a golden opportunity and a win-win situation for both the sides. This is an appropriate time for investment in India.'

The minister further said the whole world is not very much interested to deal with China, so, the next alternative available is India. He noted that there is availability of raw material, availability of talented young manpower. Transport, power and communication are already in India. He also emphasized the need to boost exports and added that concerted efforts were being made to transform India into a 5-trillion economy by 2024.

The CNX Nifty is currently trading at 13548.35, up by 70.05 points or 0.52% after trading in a range of 13505.15 and 13562.00. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were ONGC up by 6.16%, IOC up by 2.97%, GAIL India up by 2.50%, NTPC up by 2.32% and SBI up by 1.85%. On the flip side, Divis Lab down by 0.86%, Infosys down by 0.66%, Tech Mahindra down by 0.54%, Adani Ports & SEZ down by 0.44% and Shree Cement down by 0.33% were the top losers.

Asian markets were trading mixed; Straits Times gained 11.80 points or 0.42% to 2,836.76, Hang Seng jumped 74.64 points or 0.28% to 26,485.23, KOSPI rose 21.33 points or 0.78% to 2,767.79 and Jakarta Composite inched up 0.85 points or 0.01% to 5,934.55. However, Nikkei 225 fell 136.75 points or 0.51% to 26,619.49, Taiwan Weighted slipped 86.32 points or 0.61% to 14,163.17 and Shanghai Composite declined 34.59 points or 1.03% to 3,338.69.