Bourses enter into positive zone in late afternoon session

Indian equity markets erased all their losses and entered into positive zone in late afternoon session. Traders were seen piling up positions in Consumer Durables, Consumer discretionary and Auto sectors while selling was witnessed in IT, TECK and Telecom sectors’ stocks. Traders took support after Ministry of Finance has released 7th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871.00 crore to the States. With the release of this installment, a total amount of Rs. 69,097.00 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year. Traders ignored India’s unemployment rate shot up to 8.86% for the week ended October 10 compared with 7.56% a week earlier. Traders took note of report that Ministry of New and Renewable Energy (MNRE) has said that India is set to achieve 450 GW of renewable energy installed capacity by 2030.

On the global front, Asian markets were trading mostly in red, as investors grew increasingly concerned about a brewing energy crisis, spiking inflation, signs of a slowdown in the global economy and an end to central bank financial support. European markets were trading lower as investors feared that soaring commodity prices would hamper a recovery in corporate profit, with fresh signs of troubles at property developer China Evergrande also denting sentiment.

The BSE Sensex is currently trading at 60248.35, up by 112.57 points or 0.19% after trading in a range of 59885.39 and 60270.11. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.51%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.46%, Consumer discretionary up by 1.14%, Auto up by 0.89%, Realty up by 0.86% and FMCG was up by 0.82%, while IT down by 0.91%, TECK down by 0.82%, Telecom down by 0.47%, Healthcare down by 0.44% and Utilities was down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 4.51%, Bajaj Auto up by 3.43%, Bajaj Finserv up by 3.31%, SBI up by 2.31% and Kotak Mahindra Bank up by 1.31%. On the flip side, HCL Tech down by 3.78%, Tech Mahindra down by 2.17%, Ultratech Cement down by 1.38%, Mahindra & Mahindra down by 1.12% and Sun Pharma down by 0.84% were the top losers.

Meanwhile, in a relief to the States, the Department of Expenditure, Ministry of Finance has released 7th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871.00 crore to the States. With the release of this installment, a total amount of Rs. 69,097.00 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year.

The eligibility of States to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2021-22.

The States recommended for PDRD Grant by the Fifteenth Finance Commission are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

The CNX Nifty is currently trading at 17976.00, up by 30.05 points or 0.17% after trading in a range of 17864.95 and 17995.75. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 4.59%, Bajaj Auto up by 3.30%, Bajaj Finserv up by 3.26%, SBI up by 2.18% and Hero MotoCorp up by 1.97%. On the flip side, HCL Tech down by 3.97%, Tech Mahindra down by 2.27%, HDFC Life Insurance down by 2.06%, Coal India down by 1.88% and Ultratech Cement down by 1.40% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 362.50 points or 1.43% to 24,962.59, Nikkei 225 slipped 267.59 points or 0.94% to 28,230.61, Taiwan Weighted dropped 177.59 points or 1.07% to 16,462.84, Shanghai Composite declined 44.77 points or 1.25% to 3,546.94, KOSPI fell 39.92 points or 1.35% to 2,916.38 and Straits Times was down by 7.14 points or 0.23% to 3,106.35. On the flip side, Jakarta Composite was up by 26.57 points or 0.41% to 6,486.27.

European markets were trading lower, UK’s FTSE 100 decreased 48.02 points or 0.67% to 7,098.83, France’s CAC decreased 49.24 points or 0.75% to 6,521.30 and Germany’s DAX was down by 102.36 points or 0.67% to 15,096.78.