Markets trade firm in early deals on positive global cues

Indian equity benchmarks made optimistic start on Thursday after a recovery in global markets as US yields eased from record highs and crude oil cooled off to $86 per barrel. Domestic indices are trading firm in early deals with gains of over half a percent each on account of bargain hunting after recent fall. Sensex and Nifty are hovering over 65,500 and 19,500 levels, respectively. Traders took encouragement as Finance Secretary T V Somanathan said India's retail inflation is likely to ease by December as seasonal factors become more favourable. Some support also came in with a private report that the much-awaited India-UK Free Trade Agreement (FTA) is set to be signed by both countries by month-end, with all outstanding issues having been resolved. Investors are eyeing the Services PMI data to be out later in the day for more directional cues.

On the global front, Asian markets are trading higher as softer-than-expected US jobs data drove bond yields lower, which retreated from 16-year highs. Traders are also indulging in bargain hunting after the recent slump in the markets. China remains closed for the week for the National Day holiday.

Back home, Road Transport and Highways secretary Anurag Jain has said around 85% of road projects are likely to be completed by the end of this fiscal, as the steps taken by the government to ensure faster clearances like monitoring and quicker resolution of issues have started showing results. In stock specific development, J&K Bank advanced as its loan book swells 16% YoY in Q2. However, Marico slipped as its Q2 domestic volumes grew in low-single digits on a YoY basis.

The BSE Sensex is currently trading at 65589.92, up by 363.88 points or 0.56% after trading in a range of 65494.88 and 65609.35. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.75%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Realty up by 1.47%, IT up by 1.24%, TECK up by 1.06%, Capital Goods up by 1.00% and Industrials up by 0.94%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Larsen & Toubro up by 1.10%, Infosys up by 1.09%, ICICI Bank up by 0.95%, NTPC up by 0.91% and Titan Company up by 0.87%. On the flip side, Nestle down by 0.69%, Bharti Airtel down by 0.29%, Power Grid down by 0.15%, Axis Bank down by 0.06% and Hindustan Unilever down by 0.01% were the top losers.

Meanwhile, stressing on creation of a competitive economy, NITI Aayog member Arvind Virmani has said that India's experience has been different compared to the rest of the world in terms of the rise and peaking of its manufacturing GDP. He further said India has positioned itself in the last ten years with policy reforms related to product and services space.

According to Virmani, the country has put in dynamism for entrepreneurship and startups, and has instituted public sector and institutional reforms. He opined ‘there is a need of the creation of a competitive economy and not just a few monopoly segments with reduced information barriers and breaking asymmetric information circuits’.

According to the latest government data, manufacturing sector's share in India's GDP is estimated at around 17 per cent currently. He noted that the government has a crucial role to play in the provisioning of public good, regulation of externalities, ensuring a pro-competition and pro-investment market environment as well as ensuring welfare transfers and empowering every group in every geography.

The CNX Nifty is currently trading at 19543.75, up by 107.65 points or 0.55% after trading in a range of 19508.65 and 19546.35. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.51%, TCS up by 1.51%, Infosys up by 1.33%, ICICI Bank up by 1.23% and Titan Company up by 1.22%. On the flip side, Divi's Lab down by 0.74%, Power Grid down by 0.60%, Sun Pharma down by 0.45%, Britannia Industries down by 0.43% and Nestle down by 0.27% were the top losers.

Asian markets are trading higher; Nikkei 225 surged 492.11 points or 1.59% to 31,018.99, Taiwan Weighted rose 188.93 points or 1.15% to 16,462.31, Hang Seng advanced 133.22 points or 0.77% to 17,329.06, Straits Times added 24.76 points or 0.78% to 3,172.15, KOSPI increased 18.78 points or 0.77% to 2,424.47 and Jakarta Composite was up by 18.04 points or 0.26% to 6,904.62.