Benchmarks trade firm in early deals; Metal stocks shine

Indian equity benchmarks extended their winning streak and made positive start on Monday after a long weekend amid mixed global cues. Markets are trading firm with notable gains in early deals on account of buying in all the sector indices led by metal, power and utilities stocks. Sentiments got boost as Minister of State for External Affairs V Muraleedharan said The Indian economy is bouncing back strongly, domestic consumption is increasing and industrial production is at pre-COVID level, he also emphasized that the reforms implemented by the government has provided fillip to the business ecosystem in the country. Traders took note of report that Union Finance Minister Nirmala Sitharaman said the Indian government remains committed to bring the economy on the path of fiscal consolidation in the near-to-medium term, setting the target to reduce fiscal deficit to 4.5 per cent by 2025-26. Though, upside remained capped as data released by the government showed India's merchandise trade deficit widened to a record $22.6 billion in September, the highest in at least about 14 years, as crude oil and gold imports surged.

On the global front, most of the Asian markets trading lower as traders continue to express concerns that the coronavirus situation in the region and other countries, particularly in the U.S., could dent the pace of global economic recovery. Back home, aviation industry stocks were in focus as the Ministry of Civil Aviation allowed airlines to operate at 100 percent capacity. Also, power stocks were buzzing as power ministry data showed that India's power consumption grew 3.35 per cent in the first half of October to 57.22 billion units (BU), showing recovery amid coal shortage at electricity generation plants. In scrip specific development, Avenue Supermarts (Dmart) jumped as its Q2 net profit more than doubled to Rs 448.90 crore for the quarter ended September 2021 when compared with Rs 210.55 crore in the corresponding quarter a year ago.

The BSE Sensex is currently trading at 61835.07, up by 529.12 points or 0.86% after trading in a range of 61634.45 and 61863.09. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.89%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Metal up by 3.11%, Power up by 1.89%, Utilities up by 1.82%, Basic Materials up by 1.74%, PSU up by 1.49%, while there was no loser.

The top gainers on the Sensex were Infosys up by 2.06%, Tata Steel up by 1.81%, Titan Company up by 1.75%, HDFC Bank up by 1.51% and Maruti Suzuki up by 1.33%. On the flip side, Asian Paints down by 0.99%, Bajaj Auto down by 0.63%, Dr. Reddy's Lab down by 0.23% and HDFC down by 0.12% were the few losers.

Meanwhile, expressing optimism over the growth of India’s economy, Minister of State for External Affairs V Muraleedharan has said that the economy is bouncing back strongly, domestic consumption is increasing and industrial production is at pre-COVID level. He also emphasized that the reforms implemented by the government has provided fillip to the business ecosystem in the country. He said the Narendra Modi government has undertaken ‘far-reaching’ structural reforms, making use of the mantra of ‘Reform, Perform and Transform’. He added ‘These reforms range from digital transactions to banking reforms, to combating corruption, controlling inflation. Now more than 90% of the FDI approvals have been put on the automatic approval route. We are promoting an ecosystem of creativity and innovation in every field’.

Muraleedharan said the reforms being undertaken by the government provides fillip to the business ecosystem in India and the diaspora could play a significant role in the process by roping in more investments and bringing in technology and skills into the country. He said ‘We firmly believe that with the improving ecosystem and better engagement with the diaspora, new ideas will germinate in the country’. He also said ‘It is evidently clear that the economy is bouncing back strongly. Domestic consumption is increasing and industrial production is at pre-COVID levels’.

The minister noted that to provide further fillip to the manufacturing sector, the government has approved production linked incentive schemes in 10 key sectors to give a boost to the economy affected by the COVID19 pandemic. Muraleedharan also lauded the work being done by Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) and Jaipur Foot USA. He said ‘The organisation’s transformative service to the underprivileged free of cost deserves special mention’. The minister added that Jaipur Foot camps have helped change lives of many people not only in India but across the globe from Asia to Africa to Latin America.

The CNX Nifty is currently trading at 18490.10, up by 151.55 points or 0.83% after trading in a range of 18445.30 and 18521.10. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.77%, Tata Motors up by 4.27%, JSW Steel up by 3.36%, ONGC up by 2.86% and IOC up by 2.34%. On the flip side, Bajaj Auto down by 1.12%, Dr. Reddy's Lab down by 0.93%, Asian Paints down by 0.88%, Eicher Motors down by 0.71% and HCL Technologies down by 0.62% were the top losers.

Asian markets are trading mostly in red, Nikkei 225 slipped 64.02 points or 0.22% to 29,004.61, Straits Times fell 1.14 points or 0.04% to 3,172.77, Hang Seng lost 104.11 points or 0.41% to 25,226.85, Taiwan Weighted declined 11.56 points or 0.07% to 16,769.63 and Shanghai Composite was down by 12.41 points or 0.35% to 3,559.96. On the other hand, KOSPI added 2.31 points or 0.08% to 3,017.37 and Jakarta Composite rose 36.07 points or 0.54% to 6,669.41.