Domestic indices trade flat with positive bias in early deals

Indian equity benchmarks made cautious start on Thursday ahead of monthly F&O expiry later in the day amid mixed cues from global markets. Markets are hovering around neutral lines. Indices are trading flat with positive bias in early deals on account of buying in Realty, Telecom and Consumer Durables stocks. Sentiments got some support as Chief Economic Adviser (CEA) K V Subramanian said India will clock over 7 per cent annual growth during this decade on the back of strong economic fundamentals. During the current fiscal, he said, growth would be in double-digits and it could moderate to 6.5 - 7 per cent in the next financial year. However, upside remained capped as India recorded a spike of 23,139 new Covid-19 cases in the past 24 hours. The country also witnessed 309 deaths, taking the death toll to 448,090.

On the global front, most of the Asian markets are trading higher following the mixed cues overnight from Wall Street and as traders looked to snap up stocks at a bargain following the recent sell-off. Concerns about the China Evergrande situation also eased after it unveiled plans to settle debt with a Chinese bank. The upside may be limited by weakness from the oil and technology stocks.

Back home, real estate industry stocks were in focus with a private report that housing sales have jumped over two-fold during July-September period at 62,800 units across seven major cities on better demand driven by low mortgage rates and hiring in IT/ITeS sector. In scrip specific development, Indian Overseas Bank (IOB) jumped higher after the Reserve Bank removed it from Prompt Corrective Action Framework (PCAF), following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

The BSE Sensex is currently trading at 59471.87, up by 58.60 points or 0.10% after trading in a range of 59228.22 and 59549.57. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were Realty up by 1.52%, Telecom up by 1.31%, Consumer Durables up by 0.90%, Industrials up by 0.72%, Capital Goods up by 0.55%, while Energy down by 0.40%, Oil & Gas down by 0.39%, Bankex down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.97%, Tata Steel up by 0.77%, Indusind Bank up by 0.77%, Larsen & Toubro up by 0.73% and Bajaj Finserv up by 0.67%. On the flip side, Bajaj Auto down by 0.60%, Power Grid down by 0.59%, Reliance Industries down by 0.57%, Kotak Mahindra Bank down by 0.52% and HCL Technologies down by 0.32% were the top losers.

Meanwhile, in order to increase utilisation of the Emergency Credit Line Guarantee Scheme (ECLGS) and provide support to small businesses ahead of the festive season and economic upturn, the government has expanded the scheme by increasing the borrowing limit for availing loans. The ECLG scheme has been extended by six months to March 31, 2022 or till guarantees for Rs 4.5 trillion are issued, whichever is earlier. However, loans under the scheme can be disbursed till June 30.

The pace of loan sanctions under the scheme has slowed, and advances of about Rs 2.86 trillion were sanctioned as on September 24. Loans sanctioned as on July 2, were Rs 2.73 trillion. With the economic recovery and further modification of the scheme, the scheme is expected to pick up pace. The scheme has been modified to provide credit support of additional 10 per cent or up to 40 per cent of total credit outstanding as on February 29, 2020 or March 31, 2021, whichever is higher, to existing borrowers of ECLGS 1.0 and 2.0. 

Those borrowers who have not availed ECLGS 1.0 and 2.0 can avail credit up to 30 per cent of credit outstanding as on March 31, 2021. Under ECLGS 1.0 and 2.0, loans loans were guaranteed up to 30 per cent of outstanding credit as on February 29, 2020. As the cut off date to avail loans under the scheme has been changed to March 31, 2021 from February 29, 2020, existing borrowers can avail incremental credit under that limit.

The CNX Nifty is currently trading at 17716.40, up by 5.10 points or 0.03% after trading in a range of 17658.45 and 17739.90. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.71%, Adani Ports & SEZ up by 1.15%, Tata Motors up by 0.86%, Tata Steel up by 0.81% and Indusind Bank up by 0.80%. On the flip side, ONGC down by 1.73%, Cipla down by 1.04%, Eicher Motors down by 0.98%, Power Grid down by 0.85% and Hero MotoCorp down by 0.70% were the top losers.

Asian markets are trading mostly in green; Straits Times rose 13.74 points or 0.45% to 3,088.05, Taiwan Weighted added 57.91 points or 0.34% to 16,913.37, KOSPI gained 17.51 points or 0.57% to 3,077.78, Jakarta Composite surged 59.65 points or 0.97% to 6,222.20 and Shanghai Composite was up by 13.17 points or 0.37% to 3,549.46. On the other hand, Nikkei 225 lost 48.09 points or 0.16% to 29,496.20 and Hang Seng fell 222.28 points or 0.90% to 24,441.22.