Benchmarks erase some gains in morning deals

Indian equity benchmarks erased some initial gains but continued to trade in green in morning deals, as investors are eyeing the macro economic data -- industrial production and inflation data -- scheduled to be announced later in the day. Traders took some support with Union Minister of State for Finance Bhagwat Karad’s statement that buoyancy in Goods and Services Tax (GST) collection in October shows the Indian economy, adversely affected by the coronavirus pandemic, is on the path to swift recovery. Indicating the impact of festive buying, GST collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October.  However, gains remain capped as some concern came with a private report that India’s widening current account deficit (CAD), driven by the massive spike in commodity prices led by crude oil, is set to put pressure on the fragile recovery.

On the global front, Asian markets were trading mostly in green following the mostly positive cues overnight from Wall Street, as traders are bargain hunting after the recent losses. Back home, on the sectoral front, stocks related to shipping sector remained in focus with report that India, despite having a large coastline, growing domestic market and international seaborne trade, deep-rooted maritime traditions and skilled seafarers, continues to have a smaller share in the international shipping sector.

The BSE Sensex is currently trading at 60034.44, up by 114.75 points or 0.19% after trading in a range of 60033.92 and 60324.08. There were 21 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.07%, while Small cap index was up by 0.04%.

The top gaining sectoral indices on the BSE were Power up by 0.74%, Oil & Gas up by 0.61%, Metal up by 0.55%, IT up by 0.49% and Industrials up by 0.49%, while Bankex down by 0.09%, PSU down by 0.08% and Realty down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.56%, Sun Pharma up by 0.98%, Bajaj Finserv up by 0.92%, Mahindra & Mahindra up by 0.78% and Asian Paints up by 0.77%. On the flip side, Bajaj Auto down by 1.60%, SBI down by 0.74%, NTPC down by 0.70%, Indusind Bank down by 0.18% and HDFC Bank down by 0.07% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said India is looking at reciprocal and equitable access to foreign markets through free trade agreements (FTAs), which the country is negotiating with its trading partners. India is, at present, negotiating free trade agreements with countries like UAE, the UK, and Australia. Under a free trade agreement, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them.

Besides, they liberalise norms to enhance trade in services and boost investments.
Further, he stated that a few old FTAs of India which were not balanced have led to an increase in trade deficit with those nations. He mentioned ‘We are now going through careful stakeholder engagement (to negotiate an FTA) and making sure that our MSMEs, dairy industry, farmers, and domestic production capacities get more opportunities. Our employment-oriented sectors like textiles, footwear, and pharma get good market access.’

He noted in such pacts, the government is also ensuring that services sector professionals too get good opportunities in the foreign markets through two way communication with Indian stakeholders. Moreover, he said ‘We are working through balanced, fair and equitable FTAs so that both sides benefit and jobs are created in India, and business opportunities are available for our small, medium and micro-industry.’

The CNX Nifty is currently trading at 17930.00, up by 56.40 points or 0.32% after trading in a range of 17918.00 and 18000.85. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.13%, HDFC Life Insurance up by 1.93%, Tech Mahindra up by 1.65%, Britannia Industries up by 1.20% and Wipro up by 1.20%. On the flip side, Bajaj Auto down by 1.49%, SBI down by 0.78%, NTPC down by 0.77%, Tata Motors down by 0.42% and Ultratech Cement down by 0.21% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 295.92 points or 1.01% to 29,573.78, Hang Seng increased 54.95 points or 0.22% to 25,302.94, Taiwan Weighted strengthened 47.53 points or 0.27% to 17,500.05 and KOSPI rose 42.99 points or 1.47% to 2,967.91.

On the flip side, Shanghai Composite declined 0.22 points or 0.01% to 3,532.57, Straits Times trembled 0.52 points or 0.02% to 3,237.55 and Jakarta Composite lost 23.61 points or 0.35% to 6,667.73.