Local equities add gains in morning deals

After trading with modest gains in early deals, local markets have started firming up with benchmarks trading higher by around one third of a percent. Traders were optimistic with Union Minister Anurag Thakur’s statement that India is not facing 5 per cent economic slowdown and continues to be the fastest growing economy in the world. Thakur also said that a number of steps are being taken by the government to strengthen the economy that includes merger of banks and tax concessions to industries. Investors took note of Finance Minister Nirmala Sitharaman’s statement that transfer of surplus reserves from the Reserve Bank of India (RBI) to the government in future will depend on net income and other financial parameters of the central bank besides the recommendations of the expert committee on excess capital. However, upside remain capped as World Trade Organisation (WTO) reported that the global goods trade is expected to remain below trend in the fourth quarter of the current year amid increasing protectionism and increase in customs duties. The forecast does not augur well for India as the country’s exports contracted for a third month in a row in October by 1.11% to $26.38 billion. Beside, a private report stated that the economy is in the midst of a protracted phase of slowdown and the Budget for 2020-21 is just over two months away but some of the key posts in the finance ministry and the Reserve Bank of India are either lying vacant or going to be vacant soon.

On the global front, Asian markets were trading mixed, as investor sentiment remained cautious amid worries about the next development in trade talks between the United States and China. Back home, IMD World Talent Ranking reported that India has slipped 6 places to 59 rank on a global annual list of 63 countries, due to low quality of life and expenditure on education, which was topped by Switzerland.

The BSE Sensex is currently trading at 40399.20, up by 115.01 points or 0.29% after trading in a range of 40290.21 and 40455.36. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.05%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Telecom up by 6.07%, Energy up by 1.06%, TECK up by 0.62%, Healthcare up by 0.47% and BANKEX was up by 0.41%, while Metal down by 0.66%, FMCG down by 0.57%, Auto down by 0.38%, Consumer Disc down by 0.27% and Basic Materials was down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 5.84%, Tech Mahindra up by 1.66%, Axis Bank up by 1.65%, Reliance Industries up by 1.61% and HDFC Bank up by 0.65%. On the flip side, Vedanta down by 1.50%, TCS down by 1.25%, Hindustan Unilever down by 1.08%, Mahindra & Mahindra down by 0.99% and Hero MotoCorp down by 0.86% were the top losers.

Meanwhile, the Directorate General of Civil Aviation (DGCA) in its latest data has revealed that the domestic air passenger traffic increased by 3.98 per cent to 12.31 million in October 2019 as compared to 11.84 million in the same month of last year on account of tourist season. In September this year, the domestic passenger growth was just 1.18 per cent as compared to the same month last year.

The passenger load factor in the month of October has shown increasing trend compared to previous months primarily due to the onset of tourist season. According to data, the passenger load factor of all major airlines -- Air India, SpiceJet, GoAir, IndiGo, AirAsia and Vistara -- declined in October as compared to September this year. The passenger load factor measures the seat capacity utilisation of the airline. IndiGo maintained its lead position with 47.4 per cent share of the domestic passenger market in October. SpiceJet's market share increased from 14.7 per cent in September to 16.3 per cent in October, giving it the number two spot. The market share of Air India, GoAir, AirAsia and Vistara was 12.6 per cent, 11.2 per cent, 6.5 per cent and 5.4 per cent respectively in October.

Besides, in October this year, a total of 791 passenger-related complaints were received by the domestic airlines. The number of complaints per 10,000 passengers carried for the month of October was around 0.64. Among major domestic airlines, Air India topped the list of passenger grievances with 1.6 complaints per 10,000 passengers in September, while SpiceJet was on number two position with 0.8 complaints per 10,000 passengers.

The CNX Nifty is currently trading at 11,924.40, up by 39.90 points or 0.34% after trading in a range of 11,881.75 and 11,928.50. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 6.01%, Bharti Infratel up by 5.47%, Cipla up by 3.07%, Axis Bank up by 1.76% and Tech Mahindra up by 1.62%, while Zee Entertainment Enterprises down by 2.92%, TCS down by 1.35%, Vedanta down by 1.32%, Mahindra & Mahindra down by 1.06% and Hindustan Unilever down by 1.00% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 87.94 points or 0.38% to 23,328.82, Straits Times trembled 21.43 points or 0.66% to 3,237.23, KOSPI fell 9.92 points or 0.46% to 2,150.77 and Jakarta Composite lost 0.28 points or 0% to 6,122.35.

On the other hand; Shanghai Composite gained 14.73 points or 0.51% to 2,923.93, Taiwan Weighted strengthened 24.02 points or 0.21% to 11,623.80 and Hang Seng increased 304.95 points or 1.14% to 26,986.04.