Published on 14/01/2020 2:23:08 PM | Source: LKP Securities Ltd

Bourses Manage To Keep Their Heads Above Water In Afternoon Deals - LKP Securities

Posted in Market Outlook| #Market Outlook #LKP Securities Ltd

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Indian equity benchmarks managed to keep their heads above water in afternoon session, on the back of buying by funds and retail investors. Traders were taking support from the report that the government is expected to address the issue of inverted duty structure, especially in sectors such as chemicals and electronics, in the forthcoming Budget, to boost manufacturing as part of the 'Make In India' campaign. The sentiments were also supported by broadly positive Asian indices coupled with expectations of healthy quarterly earnings results. However, further gains were restricted with data showing that wholesale prices based inflation surged to 2.59 per cent in December, as against 0.58 per cent in November due to increase in prices of food articles like onion and potato. The annual inflation, based on monthly WPI, was at 3.46 per cent during the same month a year ago (December 2018). On the sectoral front, textile sector remained in focus with Invest India stating that India's textile and apparel exports are expected to reach $300 billion by 2024-25, resulting in a tripling of the country's market share globally from 5 percent to 15 percent. 

On the global front, Asian markets were trading mostly in green as signs of goodwill between China and the United States supported optimism for global growth, with the world's two biggest economies preparing to formalise a trade-war truce. Back home, the BSE Sensex is currently trading at 41897.07, up by 37.38 points or 0.09% after trading in a range of 41770.90 and 41903.70. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.85%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were FMCG up by 0.99%, Metal up by 0.89%, Consumer Discretionary Goods & Services up by 0.72%, Auto up by 0.65% and Healthcare was up by 0.58%, while Energy down by 0.30%, Capital Goods down by 0.25%, Bankex down by 0.24% and Realty was down by 0.05% were few losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 1.64%, TCS up by 1.41%, Nestle up by 1.11%, Axis Bank up by 1.02% and ITC was up by 0.98%. On the flip side, Kotak Mahindra Bank down by 0.96%, ONGC down by 0.92%, Larsen & Toubro down by 0.89%, Reliance Industries down by 0.61% and ICICI Bank was down by 0.47% were the top losers.

Meanwhile, Invest India, a non-profit venture under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, has stated that India's textile and apparel exports are expected to reach $300 billion by 2024-25, resulting in a tripling of the country's market share globally from 5 percent to 15 percent.

The domestic textile and apparel industry including handicrafts stood at $140 billion in 2018, of which $100 billion was domestically consumed while the remaining portion worth $40 billion was exported to the world market. The textile and garments industry in India is expected to reach $223 billion by 2021. The textiles and apparel industry contributes 2.3 percent to India's GDP and accounts for 13 percent of industrial production, and 12 percent of the country's export earnings.

The textile and garments industry is the second-largest employer in the country providing employment to 45 million people at present, and this number is expected to rise to 55 million people by the end of 2020. FDI in the garments and textile industry has gone to $3.1 billion during the year 2018-19. India is the largest producer of cotton and jute in the world, and the second largest producer of polyester, silk and fibre. 

The CNX Nifty is currently trading at 12344.35, up by 14.80 points or 0.12% after trading in a range of 12308.70 and 12349.75. There were 36 stocks advancing against 13 stocks declining, 1 stock remain unchanged on the index.

The top gainers on Nifty were Vedanta up by 2.59%, Britannia Industries up by 2.14%, Hero MotoCorp up by 1.66%, Cipla up by 1.31% and Eicher Motors up by 1.15%. On the flip side, Yes Bank down by 6.41%, ONGC down by 1.04%, Kotak Mahindra Bank down by 0.94%, UPL down by 0.94% and Larsen & Toubro down by 0.85% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 174.60 points or 0.73% to 24,025.17, Taiwan Weighted strengthened 66.39 points or 0.55% to 12,179.81, Straits Times advanced 13.62 points or 0.42% to 3,264.69, Jakarta Composite soared 10.41 points or 0.17% to 6,306.98 and KOSPI was up by 9.62 points or 0.43% to 2,238.88.

On the flip side, Shanghai Composite declined 3.23 points or 0.1% to 3,112.34 and Hang Seng was down by 88.15 points or 0.3% to 28,866.79.


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