Bourses trim some gains in late afternoon session

Indian equity markets trimmed some of their gains in late afternoon session as traders opted to book profit from recent rally. However, markets were trading marginally in green as traders took support after Reserve Bank of India (RBI) remained a net buyer of the US currency in August after it net purchased $3.747 billion from the spot market. In the reporting month, RBI had purchased $10.887 billion and sold $7.14 billion in the spot market, according to the monthly RBI bulletin for October 2021. Some comfort also came after Reserve Bank of India in its latest monthly bulletin ‘October 2021’ showed that domestic demand is gaining strength while aggregate supply conditions are recouping, powered by the robust performance of kharif agricultural production and revival in manufacturing and services. Traders were seen piling up positions in IT, TECK and Capital Goods sectors while selling was witnessed in Realty, Basic Materials and FMCG sectors’ stocks.

On the global front, Asian markets were trading mostly in green led by technology names across the region and as Chinese markets clawed back ground lost after disappointing economic data, while the improved investor confidence weighed on the safe-haven dollar. European markets were trading mostly in green as gains in mining and technology shares helped offset losses in Sweden's Ericsson, which reported a hit from global supply chain problems.

The BSE Sensex is currently trading at 61858.28, up by 92.69 points or 0.15% after trading in a range of 61594.29 and 62245.43. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.83%, while Small cap index was down by 0.51%.

The top gaining sectoral indices on the BSE were IT up by 1.57%, TECK up by 1.30%, Capital Goods up by 1.06%, Energy up by 0.46% and Telecom was up by 0.14%, while Realty down by 3.32%, FMCG down by 2.18%, Basic Materials down by 1.72%, Metal down by 1.60% and Consumer Durables was down by 1.57% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.71%, Larsen & Toubro up by 3.65%, Bajaj Finserv up by 1.90%, Infosys up by 1.57% and Reliance Industries up by 1.10%. On the flip side, ITC down by 5.45%, Ultratech Cement down by 2.92%, Titan Company down by 2.51%, Tata Steel down by 2.44% and Hindustan Unilever down by 2.23% were the top losers.

Meanwhile, the Reserve Bank of India in its latest monthly bulletin ‘October 2021’ has said that amidst an accentuation of global risks, the Indian economy is picking up steam, although the recovery is uneven and trudging through soft patches. The step up in vaccination, slump in new cases/mortality rates and normalising mobility has rebuilt confidence.

The latest monthly bulletin has also showed that domestic demand is gaining strength while aggregate supply conditions are recouping, powered by the robust performance of kharif agricultural production and revival in manufacturing and services. Softer than expected food prices have eased headline inflation into a closer alignment with the target.

Reserve Bank of India further noted that some alternate ways to enhance returns on forex reserves could be increasing duration of portfolio, investment in new products/asset classes, active management of gold and investment in new markets. The choice of strategy, however, would require to be tailored to suit the risk appetite, investment priorities, skill sets and operational capabilities of individual institutions.

The CNX Nifty is currently trading at 18476.75, up by 2.00 points or 0.01% after trading in a range of 18400.25 and 18604.45. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.70%, Larsen & Toubro up by 3.58%, Bajaj Finserv up by 1.97%, Infosys up by 1.57% and Reliance Industries up by 1.12%. On the flip side, ITC down by 5.50%, Tata Motors down by 4.20%, Eicher Motors down by 3.66%, Ultratech Cement down by 2.86% and Hindustan Unilever down by 2.60% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 377.46 points or 1.49% to 25,787.21, Taiwan Weighted strengthened 195.21 points or 1.17% to 16,900.67, Nikkei 225 surged 190.06 points or 0.65% to 29,215.52, Shanghai Composite gained 25.01 points or 0.7% to 3,593.15, Straits Times advanced 23.35 points or 0.74% to 3,197.17 and KOSPI was up by 22.36 points or 0.74% to 3,029.04. On the flip side, Jakarta Composite was down by 2.77 points or 0.04% to 6,656.00.

European markets were trading mostly in green, UK’s FTSE 100 increased 0.78 points or 0.01% to 7,204.61 and Germany’s DAX was up by 5.67 points or 0.04% to 15,480.14. On the flip side, France’s CAC was down by 0.59 points or 0.01% to 6,672.51.