Markets trade near neutral lines in late morning session

Indian equity benchmarks were trading near their neutral lines in late morning session, with both Sensex and Nifty holding marginal gains. Negative cues from other Asian markets impacted domestic sentiments. Gains were limited, as the International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast of 6%, citing risks associated with debt, inflation and divergent economic trends in the wake of the COVID-19 pandemic. Traders were also cautious amid reports that as global trade picks up pace after the ravages of the pandemic, an industry lobby's survey has found that an overwhelming number of exporters are worried about competitiveness.

On the global front, Asian markets were trading mostly in red, after the private sector in Hong Kong continued to expand in September, albeit at a slower pace, the latest survey from Markit Economics revealed on Wednesday with a PMI score of 51.7. That's down from 53.3, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex is currently trading at 59811.22, up by 66.34 points or 0.11% after trading in a range of 59611.34 and 59942.00. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.09%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.69%, Bankex up by 0.48%, Power up by 0.40%, PSU up by 0.40% and FMCG up by 0.37%, while Metal down by 0.86%, Healthcare down by 0.67%, TECK down by 0.37%, Telecom down by 0.34% and IT down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.68%, HDFC Bank up by 1.61%, Bajaj Finance up by 0.84%, Axis Bank up by 0.82% and Larsen & Toubro up by 0.60%. On the flip side, HCL Tech down by 1.16%, Indusind Bank down by 1.12%, Titan Co down by 1.03%, Sun Pharma down by 0.96% and Tech Mahindra down by 0.90% were the top losers.

Meanwhile, ICRA Ratings has said the outlook for the Indian road logistics sector continues to remain stable, supported by improved economic recovery in September quarter, increased pace of vaccination and decline in fresh COVID-19 cases from June onwards. It said improved economic activities in second quarter of the ongoing fiscal year will spur growth momentum for the road logistics sector in the second half of the year.

It mentioned that the sector witnessed moderation in freight volumes sequentially across different segments (road, rail and sea) in June quarter as the resurgence of COVID-19 cases by the end of 2020-21 stalled the economic recovery that was visible across most sectors during the second half of 2020-21. Given the impact of the second wave on most end-user industries, freight movement was affected. This apart, the effect of commodity inflation was significant on the earnings profile of logistics players.

Stunted demand recovery due to resurgence in COVID-19 cases in Q1 FY2022, led to decline in overall industry revenues by 17.5 per cent Q-o-Q. However, there has been a gradual revival in Q2 FY2022 due to aforementioned factors which is also reflected by steady rise in monthly e-way bill volumes as well as FASTag volumes since May-21.

The CNX Nifty is currently trading at 17836.50, up by 14.20 points or 0.08% after trading in a range of 17777.65 and 17884.60. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.15%, Tata Consumer Products up by 3.03%, UPL up by 2.94%, Britannia up by 2.04% and HDFC up by 1.77%. On the flip side, SBI Life Insurance down by 2.45%, Hindalco down by 1.37%, JSW Steel down by 1.35%, Tata Motors down by 1.23% and HCL Tech down by 1.23% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 330.24 points or 1.19% to 27,491.88, Hang Seng decreased 111.16 points or 0.46% to 23,992.99, Taiwan Weighted dropped 110.94 points or 0.67% to 16,349.81 and KOSPI fell 40.16 points or 1.36% to 2,922.01. On the flip side, Straits Times advanced 8.30 points or 0.27% to 3,076.42 and Jakarta Composite soared 126.55 points or 2.01% to 6,414.60.