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Benchmarks trim gains in morning deals
Sep-25-2020

Indian equity benchmarks climbed off the opening highs but were still trading over half a percent higher in morning deals helped by gains in Telecom, IT, TECK and FMCG stocks amid positive leads from Asian markets. Sentiments remained positive as the Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1, 2020 on a review of the current liquidity and financial conditions. A appreciation in the rupee against the US dollar added to the momentum. Indian rupee is currently trading at 73.70 against the US dollar, registering a surge of 19 paise over its previous close. However, gains remain capped as domestic rating agency India Ratings and Research (Ind-Ra) has maintained a negative outlook on non-banking financial companies (NBFCs) and housing finance companies (HFCs) for the second half of 2020-21 (2HFY21) amid Coronavirus disease (COVID-19) related business disruptions.

On the global front, Asian markets were trading mostly in green, as a late Wall Street rally supported global sentiment although weak U.S. data and uncertainty about a stimulus package in Washington have kept a lid on confidence. Back home, on the sectoral front, stocks related to pharma sector remained in limelight as ratings agency CRISIL stated that higher exports will help the Indian pharmaceutical sector come out ‘unscathed’ from the coronavirus pandemic and deliver a marginally lower 9 percent revenue growth. It noted that exports and domestic formulations account for an almost equal share in the Rs 2.8-lakh crore domestic pharma sector.

The BSE Sensex is currently trading at 36814.41, up by 260.81 points or 0.71% after trading in a range of 36730.52 and 37034.22. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.73%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Telecom up by 2.18%, IT up by 1.84%, TECK up by 1.82%, FMCG up by 1.48% and Realty up by 1.27%, while Consumer Durables down by 0.51% was the lone losing index on BSE.

The top gainers on the Sensex were HCL Technologies up by 3.19%, TCS up by 2.98%, Bharti Airtel up by 2.01%, Hindustan Unilever up by 1.98% and Nestle up by 1.84%. On the flip side, Kotak Mahindra Bank down by 0.77%, Titan Co down by 0.63%, HDFC down by 0.42% and Sun Pharma down by 0.21% were the top losers.
Meanwhile, the Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1, 2020 on a review of the current liquidity and financial conditions.

The RBI further said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets. On October 1, the RBI would purchase three securities totalling Rs 10,000 crore and selling two securities of the same amount. The result of the auctions will be announced on the same day.

Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Secs of longer maturities and selling equal amount of G-Secs of shorter maturities. Besides, the RBI said it reserves the right to decide on the quantum of purchase and sale of individual securities.
The CNX Nifty is currently trading at 10879.50, up by 73.95 points or 0.68% after trading in a range of 10854.85 and 10946.85. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 4.78%, HCL Technologies up by 3.17%, TCS up by 2.95%, Eicher Motors up by 2.38% and Cipla up by 1.95%. On the flip side, Coal India down by 1.04%, Kotak Mahindra Bank down by 0.81%, Titan Co down by 0.67%, HDFC down by 0.42% and Hindalco down by 0.38% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 117.87 points or 0.51% to 23,205.69, Jakarta Composite soared 69.80 points or 1.44% to 4,912.56, KOSPI rose 11.46 points or 0.5% to 2,284.16 and Straits Times advanced 11.06 points or 0.45% to 2,461.88.

On the flip side, Shanghai Composite declined 7.76 points or 0.24% to 3,215.42, Hang Seng decreased 48.93 points or 0.21% to 23,262.14 and Taiwan Weighted dropped 95.80 points or 0.78% to 12,168.58.
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