Markets open in green ahead of RBI’s policy outcome

Indian equity benchmarks extended previous session’s relief rally with optimistic start on Friday tracking gains in Asian counterparts. Domestic indices are trading in fine-fettle in early deals with gains of over quarter a percent. Investors are looking ahead to the Reserve Bank of India's (RBI) monetary policy decision. Market participants are widely expecting the central bank to maintain the status quo and keep the repo rate steady at 6.5 per cent, however, governor Shaktikanta Das' commentary and RBI's inflation and growth forecasts will be closely watched. Traders took encouragement as Finance Minister Nirmala Sitharaman reportedly said the inclusion of Indian bonds in JPMorgan’s widely tracked emerging market debt index could bring $23 billion worth inflows into the country. 

On the global front, Asian markets are trading higher, despite the broadly negative cues from Wall Street overnight, as traders continued to take advantage of the recent slump in the markets as they picked up stocks at reduced levels, even as concerns remain about interest rates and the outlook for global economic growth. Back home, the meeting of the Goods and Services Tax (GST) Council to review progress in anti-profiteering matters to be held on October 07. In stock specific development, Kalyan Jewellers jumped after it reported consolidated revenue growth of 27% YoY for Q2 in its pre-quarterly update.

The BSE Sensex is currently trading at 65841.48, up by 209.91 points or 0.32% after trading in a range of 65762.33 and 65888.98. 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 0.44%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.74%, Realty up by 0.71%, Healthcare up by 0.59%, Consumer discretionary up by 0.54% and Auto up by 0.52%, while Telecom down by 0.44% and Capital Goods down by 0.01% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.49%, ITC up by 1.33%, Titan Company up by 1.31%, Bajaj Finance up by 1.24% and Maruti Suzuki up by 0.94%. On the flip side, Power Grid down by 0.61%, Hindustan Unilever down by 0.61%, Larsen & Toubro down by 0.22%, Bharti Airtel down by 0.22% and Axis Bank down by 0.09% were the top losers.

Meanwhile, in a positive move, India and the UAE have signed a Memorandum of Understanding (MoU) on increasing cooperation in the field of industries and advanced technologies. The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and deployment of key technologies in industries, by benefitting from joint funds and mutual efforts. It was signed between Indian Commerce and Industry Minister Piyush Goyal and Minister of Industry and Advanced Technology of UAE Sultan Al Jaber.

The MoU also aims to build institutional and corporate capabilities, and skills. According to the MoU, the two countries will cooperate in the development and advancement of industries and technologies in sectors of strategic interest for the growth and diversification of their economies.

This can be achieved through industrial and academic collaborations; collaborative research and development projects; sharing of science and technology policies, best practices; standardisation, metrology, conformity assessment, accreditation, and 'halal' certification. The areas and fields of industrial and advanced technology cooperation include strengthening the supply chain resilience of industries, renewable and energy efficiency, health and life sciences, space systems, artificial intelligence, and Industry 4.0 enabling technologies.

The CNX Nifty is currently trading at 19611.30, up by 65.55 points or 0.34% after trading in a range of 19589.40 and 19624.00. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.45%, Dr. Reddy's Lab up by 1.40%, Tata Consumer Products up by 1.36%, ITC up by 1.31% and Titan Company up by 1.15%. On the flip side, Power Grid down by 0.74%, Hindustan Unilever down by 0.61%, ONGC down by 0.38%, Bharti Airtel down by 0.37% and Larsen & Toubro down by 0.35% were the top losers.

Asian markets are trading higher; Hang Seng sunrged317.08 points or 1.84% to 17,530.95, Taiwan Weighted rose 51.78 points or 0.31% to 16,505.30, Jakarta Composite gained 26.44 points or 0.38% to 6,901.27, Nikkei 225 advanced 23.68 points or 0.08% to 31,099.04, Straits Times added 14.23 points or 0.45% to 3,169.33, KOSPI was up by 6.57 points or 0.27% to 2,410.17.