Sensex, Nifty turn positive in early noon deals

A sharp recovery witnessed over the Dalal Street in early noon deals, with both Sensex and Nifty turning positive, aided by buying at Consumer Durables and Realty counters, despite mixed cues from other Asian markets. Traders were taking support from SBI Research’s statement that the monetary policy committee of the Reserve Bank of India (RBI) is expected to yet again pause the key repo rate at its next bi-monthly review scheduled in the first week of October. The meeting is scheduled for October 4-6. RBI typically conducts six bi-monthly meetings in a financial year, where it decides interest rates, money supply, inflation outlook, and various macroeconomic indicators. Besides, underlining the Government's commitment to improving the ease of doing business in India, making it easier to start and run businesses, Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has highlighted the success of the Startup India initiative as the nation has witnessed remarkable growth from 450 startups in 2016 to over 1 lakh today, making India the world's third-largest startup ecosystem.

On the global front, Asian markets were trading mixed, after Japan's central bank left its massive monetary policy stimulus unchanged on Friday and policymakers remained dovish even as inflation continued to remain above the target and all major central banks are close to the end of their tightening cycle.

The BSE Sensex is currently trading at 66027.89, up by 18.74 points or 0.03% after trading in a range of 65764.03 and 66118.56. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.07%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.88%, Realty up by 0.27%, Healthcare up by 0.23%, Basic Materials up by 0.17% and Consumer Disc up by 0.14%, while TECK down by 0.68%, Capital Goods down by 0.68%, IT down by 0.52%, Industrials down by 0.42% and Power down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 4.41%, Bajaj Finserv up by 2.41%, Kotak Mahindra Bank up by 1.44%, Asian Paints up by 1.14% and Titan Company up by 1.01%. On the flip side, Infosys down by 1.24%, Larsen & Toubro down by 0.98%, Bharti Airtel down by 0.93%, SBI down by 0.89% and Wipro down by 0.87% were the top losers.

Meanwhile, Southern India Mills' Association (SIMA) Chairman S K Sundararaman has said that textile and clothing sectors must have a holistic approach with a long-term vision not only to grab the space vacated by China in the textile trade but also to achieve a sustained growth rate. He noted that textiles and clothing industries are the second largest employment provider after agriculture generating Rs 30,000 crore as Goods and Services Tax revenue and $44 billion foreign exchange earnings.

Sundararaman said the Association would strive to address structural issues and enhance global competitiveness. He also said the NDA government has been giving major thrust for enhancing the global competitiveness of the textiles and clothing industry and addressed several issues. However, he said the policy pitfalls in certain areas and delay in strengthening the raw material base, refunding government dues have been affecting the industry to achieve a sustained growth rate. He also said though several States provide attractive incentives, there is an undue delay in disbursing the committed benefits on time resulting in several financial stress for the new investments made. 

SIMA Chairman urged the Union Minister of Textiles Piyush Goyal to exempt VSF (viscose staple fibre) imported under the Advance Authorisation scheme and all the special and value-added fibres and filaments are not manufactured in the country immediately. He expressed hope the free trade agreement with the United Kingdom and the European Union would enable the country to double its exports.

The CNX Nifty is currently trading at 19676.80, up by 2.55 points or 0.01% after trading in a range of 19601.55 and 19713.65. There were 22 stocks advancing against 27 stocks declining, while 1 stock remained unchaged on the index.

The top gainers on Nifty were Bajaj Finance up by 4.48%, Bajaj Finserv up by 2.29%, Apollo Hospital up by 1.87%, Tata Consumer Products up by 1.57% and Kotak Mahindra Bank up by 1.45%. On the flip side, SBI Life Insurance Company down by 1.47%, Infosys down by 1.18%, Hindalco down by 1.05%, Hero MotoCorp down by 1.02% and Larsen & Toubro down by 0.99% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 276.21 points or 0.85% to 32,678.62, Taiwan Weighted added 107.75 points or 0.65% to 16,452.23, Straits Times rose 11.57 points or 0.36% to 3,216.39 and Jakarta Composite gained 1.87 points or 0.03% to 7,018.71, while KOSPI dropped 12.37 points or 0.5% to 2,495.76, Shanghai Composite weakened 16.83 points or 0.54% to 3,115.60 and Hang Seng declined 323.86 points or 1.79% to 17,733.59.