Markets hold strong gains in late morning session

Indian equity benchmarks held strong gains in late morning session, with both Sensex and Nifty trading in green terrain, despite negative cues from other Asian markets. Traders were positive, as Union Commerce Minister Piyush Goyal said that India and the UAE share a natural partnership that will benefit both countries in terms of various opportunities and employment. Some support also came after rating agency ICRA in its latest report has said that the higher-than-budgeted revenue collections, mostly higher tax devolution from the Centre, will help states reduce their market borrowing to Rs 7.6 lakh crore in FY22, which is 4.7 per cent lower than the year-ago level.

On the global front, Asian markets were trading mostly in red, even after Japan's consumer confidence rose to the highest level in nineteen months in September. The data from the Cabinet Office showed that on a seasonally adjusted basis, the consumer confidence index increased to 37.8 in September from 36.7 in August. The latest index was the highest since February last year, when it was 38.4.

The BSE Sensex is currently trading at 59389.33, up by 623.75 points or 1.06% after trading in a range of 58952.11 and 59548.82. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.12%, while Small cap index was up by 1.38%.

The top gaining sectoral indices on the BSE were Realty up by 2.13%, Healthcare up by 1.62%, Industrials up by 1.40%, Energy up by 1.32% and Capital Goods up by 1.24%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.71%, NTPC up by 2.54%, Bajaj Finance up by 2.45%, Mahindra & Mahindra up by 2.42% and Dr. Reddy's Lab up by 1.70%. On the flip side, Power Grid down by 0.39%, Tata Steel down by 0.34% and Bajaj Auto down by 0.02% were the top losers.

Meanwhile,Ministry of Commerce and Industry in its preliminary data has showed that India’s merchandise exports jumped 21.35% to $33.44 billion in September 2021 as compared to $27.56 billion in September 2020, mainly due to better performance by key sectors like engineering goods and petroleum products. In September, merchandise imports stood at $56.38 billion, an increase of 84.75% compared to the year-ago period. The same was at more than $30.52 billion in the same period a year ago. The trade deficit in September was at $22.94 billion as gold imports jumped nearly 750% to $5.11 billion.

As per the preliminary data, the trade deficit, which is the gap between imports and exports, works out to be $78.81 billion during April-September period. Exports of engineering goods stood at $9.42 billion, up 36.7% over September 2020. The outward shipments of petroleum is estimated at $4.91 billion in September 2021, an increase of 39.32% over the year-ago month. Outward shipments of ‘gems and jewellery’ were 19.71% higher at $3.23 billon. However, exports of ‘drugs and pharmaceuticals’ registered a decline of 8.47%.

The imports of ‘petroleum, crude and products’ soared nearly 200% to $17.436 billion in September on an annual basis. The data also showed that imports of ‘coal, coke and briquettes’ were up 82.89% at $2.18 billion in September 2021 over the same month last year. Besides, value of non-petroleum exports in September was $28.53 billion, a growth of 18.72% over the year-ago period and 26.32% higher compared to September 2019. Value of non-petroleum imports was at $38.95 billion in September, an increase of 57.73% compared to the same period a year ago, and 36.14% over September 2019.

As per the data, value of non-petroleum and non-gems and jewellery exports in September was at $25.29 billion, registering a growth of 18.59% year-on-year. The exports in the first half of the fiscal (April-September 2021) stood at $197.11 billion. This is an increase of 56.92% over $125.61 billion in the year-ago period and 23.84% compared to April-September 2019.

The CNX Nifty is currently trading at 17701.15, up by 169.10 points or 0.96% after trading in a range of 17581.35 and 17750.90. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 7.88%, Bajaj Finserv up by 2.71%, Bajaj Finance up by 2.50%, NTPC up by 2.43% and Mahindra & Mahindra up by 2.16%. On the flip side, UPL down by 2.38%, Grasim Industries down by 2.13%, Cipla down by 1.12%, Indian Oil Corporation down by 0.82% and Eicher Motors down by 0.47% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 408.33 points or 1.42% to 28,362.74, Hang Seng declined 542.07 points or 2.21% to 24,033.57 and Taiwan Weighted lost 139.73 points or 0.84% to 16,431.16. On the other hand, Straits Times jumped 41.39 points or 1.36% to 3,092.50 and Jakarta Composite was up by 90.35 points or 1.45% to 6,319.20.