Sensex, Nifty continues flat trade amid lackluster session

After opening lower, Indian equity markets moved in positive territory and currently holding that green mark with marginal gains despite weakness in Asian markets. The 30-share BSE Sensex rose 4.08 points, while 50-share NSE Nifty gained 2.85 amid lackluster trade since early morning on Monday. Meanwhile, investors were looking for more reforms in the winter parliament session and some positive sentiments euro zone as Greece is likely to receive next tranche of aid from EU/IMF. In currency markets, rupee depreciated against dollar on increasing demand for American currency from banks and importers. On sectoral front, healthcare, consumer durable, FMCG, capital goods and PSU stocks were finding some support, while auto, oil and metal stocks were trading in red. In global markets, Asian shares fell largely on Monday tracking a sell-off in global shares late last week, as investors continued to shed risk ahead of the closely fought US presidential election. Back home, the market breadth favoring positive trend; there were 1,261 shares on the gaining side against 1,167 shares on the losing side while 116 shares remain unchanged.

The BSE Sensex is currently trading at 18,759.53 up by 4.08 points or 0.02% after trading in a range of 18,794.63 and 18,737.13. There were 12 stocks advancing against 18 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.17% and Small cap index was up by 0.16%.

The top gaining sectoral indices on the BSE were, HC up by 0.88%, CD up by 0.73%, FMCG up by 0.67%, CG up by 0.20% and PSU up by 0.15%. While, Auto down by 0.49%, Oil & Gas down by 0.32%, Metal down by 0.29%, Power down by 0.22% and IT down by 0.18% were the few losers on the index.

The top gainers on the Sensex were Dr Reddy up by 1.84%, Cipla up by 1.42%, BHEL up by 1.27%, Coal India up by 1.26%, and ITC up by 1.15%.

On the flip side, Hindalco was down by 2.08%, Bajaj Auto was down by 1.71%, Tata Steel was down by 1.05%, Jindal Steel was down by 1.05% and GAIL India was down by 0.84% were the top losers on the Sensex.

Meanwhile, lashing some of the recent downgrades by global rating agencies, Prime Minister's key economic adviser, C Rangarajan, has said that there is no case for lowering India's credit rating and that these agencies need to look at the international scenario before taking any rating action.

Prime Minister’s Economic Advisory Council (PMEAC) Chairman pointed that these rating agency have no strong case for lowering India’s credit rating and they need to recognize the fact, that the government off lately has taken some strong actions. In the past few weeks, the Government has taken a slew of reform measures, including opening up the retail, insurance, pension, information and broadcasting sector to foreign investment.

He further added that, the rating agencies need to judge the performance of India’s economy in the context of current happenings across the globe, which would lead to change in the attitude of these rating agencies.

Not impressed by a series of economic reforms, global agency Standard & Poor (S&P), in October this year, threatened to downgrade India's sovereign credit rating to junk grade within 24 months in absence of steps to check fiscal deficit and improve investment climate. The rating agency in April had changed the rating outlook of India from stable to negative, reflecting the possibility of a downgrade. The country's present rating is BBB-(Negative), the lowest investment grade rating, and a downgrade would result in India's rating slipping to junk status, raising the cost of overseas borrowings by domestic corporate. 

The S&P CNX Nifty is currently trading at 5,700.55, up by 2.85 points or 0.05% after trading in a range of 5,709.20 and 5,690.50. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Dr Reddy up by 1.73%, ACC up by 1.53%, Cipla up by 1.37%, ITC up by 1.31% and Kotak Bank up by 1.26%.

On the flip side, Hindalco down by 2.08%, Bajaj Auto down by 1.73%, Cairn down by 1.40%, DLF down by 1.29% and Tata Steel down by 1.24%, were the major losers on the index.

All the Asian equity indices were trading in the red; Kospi Composite was down by 0.55%, Taiwan Weighted down by 0.35%, Jakarta Composite down by 0.90%, Straits Times was down by 0.21%, KLSE Composite down by 0.19%, Hang Seng was down by 0.25%, Shanghai Composite was down by 0.21% and Nikkei 225 down by 0.48%.