Key indices recoup losses to trade flat in morning deals

Indian equity benchmarks recouped initial losses and were now trading flat in morning deals, amid buying in FMCG, Telecom and TECK stocks. Traders took some support with Commerce and Industry Minister Piyush Goyal’s statement that Simplification, facilitation and ease of doing business has helped India create more startups. For promoting startups, he said the government is creating future global leaders and wants to become the innovation hub of the world. Some support also came with Sebi data indicating that investment through participatory notes (P-notes) in the domestic capital market was at Rs 97,744 crore till August-end, and going forward the inflow is expected to remain positive for the rest of the year. However, some anxiety remained among traders with President Ram Nath Kovind’s statement that the Covid-19 pandemic hit the country's economy hard. Kovind said the past 18 months have been very trying for the country. He stated the government has taken various fiscal measures for the welfare of the poor and alleviate distress.

On the global front, Asian markets were trading lower as traders continued to express concerns that the surge coronavirus cases in the region and other countries, particularly in the US, could dent the pace of global economic recovery from the pandemic. Back home, on the sectoral front, stocks related to telecom sector remained in focus as Moody's Investors Service said the telecom sector reforms package announced by the government will sustain telcos' businesses, is credit positive for operators, including Airtel and Jio, and provides support for 3+1 players structure.

The BSE Sensex is currently trading at 59072.02, up by 56.13 points or 0.10% after trading in a range of 58525.89 and 59075.94. There were 13 stocks advancing against 17 stocks declining on the index.

The broader index was trading in green; the BSE Mid cap index rose 0.02%.

The top gaining sectoral indices on the BSE were FMCG up by 1.43%, Telecom up by 0.77%, TECK up by 0.67%, IT up by 0.58% and Realty up by 0.05%, while Metal down by 3.26%, Basic Materials down by 1.53%, Power down by 1.15%, Utilities down by 0.79% and PSU down by 0.76% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.92%, Hindustan Unilever up by 1.92%, HCL Technologies up by 1.74%, Kotak Mahindra Bank up by 1.43% and Tech Mahindra up by 1.08%. On the flip side, Tata Steel down by 4.64%, HDFC down by 1.30%, Bajaj Auto down by 1.00%, Power Grid Corporation down by 0.87% and Maruti Suzuki down by 0.71% were the top losers.

Meanwhile, investment through participatory notes (P-notes) in the domestic capital market was at Rs 97,744 crore till August-end, and going forward the inflow is expected to remain positive for the rest of the year. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets -- equity, debt and hybrid securities -- was at Rs 97,744 crore in August-end compared to Rs 85,799 crore in July-end. The figure for July has been revised by the regulator from Rs 1,01,798 crore posted earlier.
Prior to that, the investment level was at Rs 92,261 crore in June-end, Rs 89,743 crore in May-end, Rs 88,447 crore at April-end and Rs 89,100 crore in March-end.

Of the total Rs 97,744 crore invested through the route till August, Rs 89,844 crore was invested in equities, Rs 7,586 crore in debt and Rs 315 crore in hybrid securities.

The CNX Nifty is currently trading at 17583.50, down by 1.65 points or 0.01% after trading in a range of 17425.30 and 17588.15. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were ITC up by 2.92%, HCL Technologies up by 1.99%, Hindustan Unilever up by 1.89%, Divi's Lab up by 1.83% and Kotak Mahindra Bank up by 1.33%. On the flip side, Tata Steel down by 4.95%, Hindalco down by 3.28%, Eicher Motors down by 2.87%, JSW Steel down by 2.69% and BPCL down by 1.91% were the top losers.

Asian markets were trading lower; Hang Seng decreased 964.95 points or 3.87% to 23,955.81, Jakarta Composite lost 71.84 points or 1.17% to 6,061.41 and Straits Times trembled 11.38 points or 0.37% to 3,059.85.