Benchmarks manage to trade in green in morning deals

Indian equity benchmarks erased most of their initial gains but managed to trade in green in morning deals, led by Realty, Power and Capital Goods stocks. Traders took some support with NaBFID Chairman KV Kamath’s statement that India’s GDP will likely grow to $25 trillion size in the next 25 years and digital fintech players could contribute to about 25%-30% of the overall growth. Traders took a note of report that India and the 10-nation bloc Asean are expected to formally launch the review exercise for the free trade agreement (FTA) in November. They have agreed to fast-track negotiations for the review of the existing agreement in goods between the two regions and conclude the talks in 2025. However, gains remain capped with a private report stating that the all-India cumulative rainfall stood at -11 per cent of long period average (LPA) on September 5, well below the normal (±4 per cent of LPA), and worse than -9 per cent of LPA a week back. On the global front, Asian markets are trading lower as China reported weaker global demand hit its trade in August, adding to pressures on its economy. Data showing a lower than expected GDP growth in Japan also hurt investor sentiment. 

The BSE Sensex is currently trading at 66339.81, up by 74.25 points or 0.11% after trading in a range of 66299.30 and 66518.79. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.34%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Realty up by 1.30%, Power up by 1.29%, Capital Goods up by 1.11%, Utilities up by 1.11% and Telecom up by 1.02%, while Metal down by 0.51%, Healthcare down by 0.40%, FMCG down by 0.21%, IT down by 0.09% and Bankex down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.39%, Bajaj Finserv up by 1.57%, Larsen & Toubro up by 1.40%, Bharti Airtel up by 0.81% and Tata Motors up by 0.79%. On the flip side, JSW Steel down by 0.90%, ITC down by 0.49%, Wipro down by 0.49%, Axis Bank down by 0.45% and Tech Mahindra down by 0.37% were the top losers.

Meanwhile, Ajay Chaudhary, an executive director who heads the fintech department at the Reserve Bank of India, has said sustainable growth of the fintech ecosystem can be achieved by putting in place a governance mechanism and focusing on customer-centricity. 

Chaudhary stated ‘What is needed for the sustainable development and growth of the fintech ecosystem is the right thrust on customer-centricity and better governance standards. These can be achieved by balancing the needs of tomorrow with the wants of today.’ Noting that fintech companies have vastly improved the efficiency of service delivery and customer experience, he said that what is needed is more focus on these matters which can be better achieved through the above points.

Besides, underlining the need for incremental and gradual regulation in the sector, Chaudhary said that it could be rule-based, outcome-based or even need-based regulation but the first step towards such a regulated existence is starting with a supervisory framework which could be in the form of a self-regulatory organisation or SRO.
The CNX Nifty is currently trading at 19733.75, up by 6.70 points or 0.03% after trading in a range of 19727.05 and 19792.95. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.73%, Larsen & Toubro up by 1.48%, Bajaj Finserv up by 1.38%, Adani Ports &SEZ up by 0.91% and Bharti Airtel up by 0.78%. On the flip side, Hindalco down by 1.18%, SBI Life Insurance down by 0.95%, JSW Steel down by 0.90%, Dr. Reddy's Lab down by 0.63% and Divi's Lab down by 0.63% were the top losers.

Asian markets are trading lower; Hang Seng declined 247.91 points or 1.36% to 18,202.07, Taiwan Weighted lost 49.31 points or 0.3% to 16,569.83, Straits Times fell 15.52 points or 0.48% to 3,211.07, Shanghai Composite weakened 13.51 points or 0.43% to 3,108.84, Jakarta Composite plunged 33.04 points or 0.48% to 6,921.77, KOSPI dropped 14.41 points or 0.57% to 2,533.85 and Nikkei 225 slipped 466.12 points or 1.41% to 32,524.96.