Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the afternoon session due to buying in Bankex, Oil & Gas and Capital Goods stocks. Buying in frontline stocks such as HDFC Bank, HDFC and Axis Bank were aiding sentiment, while selling in Titan Company, Sun Pharma and HCL Tech kept the gains in the markets in check. Traders took solace as Moody's Investors Service changed its outlook on India's sovereign ratings to stable from negative. Besides, it retained the ratings, both on foreign and domestic currencies, at Baa3. Meanwhile, Care Ratings’ report stated that the weighted average cost for borrowing across the states and maturities has risen to a two-month high of 6.91 per cent, up 6 basis points (bps) over the past week. According to the report, the rise in the yields of state bonds follows the uptick in yields of government securities (G-Secs) in recent days. On the global front, Asian markets were trading mostly in red as investors stayed jittery about inflation with oil prices reaching new multi-year highs. Back home, in scrip specific development, IRCTC hit new 52 week high of Rs 4,512 today ahead of 1:5 stock split. The company has fixed October 29, 2021 as the record date, to ascertain the name of shareholders entitled for subdivision/split of equity shares of Rs 10 each into five (5) equity shares of face value of Rs 2 each.

The BSE Sensex is currently trading at 59899.17, up by 154.29 points or 0.26% after trading in a range of 59611.34 and 59942.00. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.02%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Bankex up by 0.84%, Oil & Gas up by 0.80%, Capital Goods up by 0.52%, PSU up by 0.41% and Power was up by 0.37%, while Metal down by 0.84%, Healthcare down by 0.59%, Consumer Durables down by 0.31%, TECK down by 0.27% and IT was down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.73%, HDFC up by 1.57%, Axis Bank up by 1.33%, Bajaj Finance up by 1.16% and Larsen & Toubro was up by 0.92%. On the flip side, Titan Company down by 1.21%, Sun Pharma down by 1.15%, HCL Tech down by 1.06%, Bajaj Auto down by 0.80% and Indusind Bank was down by 0.78% were the top losers.

Meanwhile, Rating agency Crisil in its latest report has said that the Indian paint industry is expected to clock a revenue growth of around 12 percent in current financial year (FY22), with improving consumer sentiment and economic recovery driving growth in decorative and industrial segments alike. It also said the decorative and industrial segments of the domestic paints industry would regain the ground lost amid the second wave of the pandemic in the first quarter and strong balance sheets would keep credit profiles of the players stable. However, it also warns high crude prices would soften the margins of the industry players.

According to the report, the Indian paint industry is estimated to be around Rs 53,000 crore. It said higher spending on home improvement and refurbishing and a gradual increase in real estate activity are expected to drive revenue recovery of 11 per cent in the decorative paints segment. Also, it said this year, revenue recovery is expected to be more broad-based. Improving the pace of vaccination and easing of pandemic related curbs will drive growth in the urban areas.

On the other hand, the report stated that better rural incomes on the back of an almost normal monsoon will support recovery in the hinterland, which accounts for a sizeable chunk of decorative paint volumes. It said last fiscal, while the overall paint sector registered only 4 per cent growth, the decorative segment had fared better due to strong demand from the hinterland, which was less impacted by the first wave.

The CNX Nifty is currently trading at 17863.50, up by 41.20 points or 0.23% after trading in a range of 17777.65 and 17884.60. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.33%, UPL up by 3.06%, Tata Consumer Products up by 2.91%, Britannia Industries up by 2.40% and BPCL was up by 1.75%. On the flip side, SBI Life Insurance down by 2.27%, Hindalco down by 1.41%, Titan Company down by 1.21%, Coal India down by 1.19% and Sun Pharma was down by 1.10% were the top losers.

Asian markets were trading mostly in red; KOSPI fell 53.86 points or 1.82% to 2,908.31, Nikkei 225 slipped 293.25 points or 1.05% to 27,528.87, Hang Seng decreased 101.54 points or 0.42% to 24,002.61, Taiwan Weighted dropped 67.59 points or 0.41% to 16,393.16

On the flip side; Jakarta Composite soared 145.38 points or 2.31% to 6,433.43 and Straits Times was up by 9.89 points or 0.32% to 3,078.01.