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Benchmarks trade marginally higher in early deals
Dec-06-2019

Indian equity benchmarks made positive start and are trading marginally higher in early deals on Friday, tracking positive cues from other Asian markets. Gains in Telecom, Healthcare and Metal shares pushed the markets higher. Traders took encouragement with Reserve Bank of India (RBI) Governor Shaktikanta Das indicating that the government may come up with some countercyclical policy measures on the fiscal side to revive growth. Some support also came with Commerce and Industry Minister Piyush Goyal’s statement the target of Rs 5 lakh crore business through government’s e-marketplace GeM is achievable in less than five years given the huge amount of procurement done via the platform. However, upside remained capped as industry body Ficci expressed disappointment at the RBI’s decision to keep interest rates unchanged, and said there is a need for continued action on the policy rate front to boost growth.

Global cues remained supportive with all the Asian markets were trading in green as investors took heart from US President Donald Trump saying trade talks with China were ‘moving right along’, and U.S. oil prices sat near 2-1/2-month highs after OPEC and other producers agreed to cut output. Back home, Airline stocks such as Jet Airways and InterGlobe Aviation gained despite the International Air Transport Association (IATA) stating that India’s domestic air passenger traffic grew 3.6 per cent in October 2019 but the expansion was slower than last year, reflecting general economic slowdown and disruptive impact of Jet Airways’ collapse. Besides, banking stocks were also in action with Fitch Ratings stating that Indian banks are likely to take significantly more loan write-offs to reduce bad loans against a backdrop of rising provisions and weak recovery prospects. In scrip specific development, Greaves Cotton gained after acquiring balance 5,000 equity shares from Hemalatha Annamalai in Ampere Vehicles, through secondary purchase. 

The BSE Sensex is currently trading at 40877.56, up by 97.97 points or 0.24% after trading in a range of 40855.41 and 40952.13. There were 21 stocks advancing against 9 stocks declining on the index, while 1 stock remains unchanged on the index on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.33%, while Small cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were Telecom up by 1.00%, Healthcare up by 0.93%, Metal up by 0.82%, Energy up by 0.62% and Basic Materials was up by 0.52%, while Consumer Durables down by 0.59%, IT down by 0.30%, Capital Goods down by 0.25%, TECK down by 0.14% and PSU was down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Industries up by 1.59%, Tata Steel up by 1.36%, Vedanta up by 0.95%, Reliance Industries up by 0.87% and Kotak Mahindra Bank up by 0.82%. On the flip side, Yes Bank down by 4.75%, ONGC down by 0.74%, TCS down by 0.70%, Infosys down by 0.55% and SBI down by 0.48% were the top losers.

Meanwhile, Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed disappointment at the Reserve Bank of India’s (RBI’s) decision to keep interest rates unchanged and said there is a need for continued action on the policy rate front to boost growth. FICCI President Sandip Somany said ‘the RBI has left the repo rate unchanged. This is contrary to what FICCI was expecting given the weakening growth scenario in the economy. We note with concern that the transmission of the earlier policy rate cuts has not happened adequately, and are disappointed with the decision to not cut the repo rate as there is need for continued action on the policy rate front.’

He said a reversal in the declining economic growth trajectory is clearly the need of the hour and all steps should be taken to bring about this change. He added that a cut in the policy rate was also important for boosting the sentiment in the market and amongst investors, and FICCI was hoping for a bolder action on this front.

He also said ‘in fact, we feel that a further cut of 75 to 100 basis points in the repo rate is required in a short period of time to strengthen growth in the economy.’

The CNX Nifty is currently trading at 12038.80, up by 20.40 points or 0.17% after trading in a range of 12036.50 and 12057.05. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 3.15%, Sun Pharma Industries up by 1.27%, Dr. Reddys Lab up by 1.20%, Tata Steel up by 0.96% and Cipla up by 0.93%. On the flip side, Yes Bank down by 5.31%, Zee Entertainment down by 2.32%, UPL down by 1.43%, ONGC down by 1.01% and SBI down by 0.83% were the top losers.

All Asian market were trading in green; Shanghai Composite gained 0.50 points or 0.02% to 2,899.97, Straits Times advanced 0.60 points or 0.02% to 3,174.79, Taiwan Weighted strengthened 11.46 points or 0.1% to 11,606.11, Jakarta Composite soared 13.05 points or 0.21% to 6,165.17, KOSPI rose 17.94 points or 0.87% to 2,078.68, Nikkei 225 surged 67.41 points or 0.29% to 23,367.50 and Hang Seng was up by 179.88 points or 0.69% to 26,396.92.
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