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Published on 29/10/2020 1:05:35 PM | Source: LKP Securities Ltd

Benchmarks turn positive in afternoon deals - LKP Securities

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

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Benchmarks turn positive in afternoon deals

Local equity benchmarks erased all the losses to turn positive in afternoon session, both Sensex and Nifty were trading above 39,950 and 11,700 marks, respectively. Buying in frontline stocks such as Asian Paints, Kotak Mahindra Bank and Ultratech Cement were aiding sentiment, while selling in Larsen & Toubro, ONGC and Titan Company kept the gains in the markets in check. Traders were taking solace with private report that US called for stronger energy ties with India, hinting at the possibility of reducing trade and investment barriers between both the countries. Adding optimism, Union Finance Minister Nirmala Sitharaman stated that she was closely monitoring the progress of Micro Small Medium Enterprises (MSMEs), whom she called as the growth engine of the country. Meanwhile, Department for Promotion of Industry and Internal Trade (DPIIT) under Union Ministry of Commerce and Industry, has released the next edition of its consolidated foreign direct investment (FDI) policy document, incorporating all the changes made over the past year.

On the global front, Asian markets were trading mostly lower amid corona virus woes and new restrictive measures around the globe. Back on street, in scrip specific developments, CG Power touched roof on turning black in Q2 and Wipro surged on signing definitive agreement to acquire Encore Theme Technologies 

The BSE Sensex is currently trading at 39959.34, up by 36.88 points or 0.09% after trading in a range of 39524.25 and 40010.83. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.05%, while Small cap index was down by 0.39%.

The top gaining sectoral indices on the BSE were Energy up by 0.96%, Bankex up by 0.35%, Basic Materials up by 0.31%, Power up by 0.17% and Telecom was up by 0.14%, while Capital Goods down by 1.45%, Consumer Durables down by 1.45%, Industrials down by 0.93%, PSU down by 0.79% and Auto was down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.09%, Kotak Mahindra Bank up by 2.06%, Ultratech Cement up by 1.54%, Bajaj Finance up by 1.50% and Reliance Industries was up by 1.38%. On the flip side, Larsen & Toubro down by 3.83%, ONGC down by 2.79%, Titan Company down by 2.74%, Hindustan Unilever down by 1.42% and NTPC was down by 1.14% were the top losers.

Meanwhile, Department for Promotion of Industry and Internal Trade (DPIIT) under Union Ministry of Commerce and Industry, has released the next edition of its consolidated foreign direct investment (FDI) policy document, incorporating all the changes made over the past year. According to DPIIT, the new circular has come into effect from October 15, 2020.

The consolidated policy is a compilation of various decisions taken by the government with regard to FDI in different sectors. The DPIIT, which deals with FDI related matters, compiles all policies related to foreign investment regime into a single document to make it simple and easy for investors to understand. Investors would otherwise have to go through various press notes issued by the department, and the RBI regulations to understand the policy. The whole exercise is aimed at providing an investor-friendly climate to foreign players and, in turn attract more FDI to boost economic growth and create jobs.

The government has liberalised FDI policy in several sectors, including coal mining, digital news, contract manufacturing and single-brand retail trading. The DPIIT has also included the decision wherein the government in April made its prior approval mandatory for foreign investments from countries that share land border with India to curb ‘opportunistic takeovers’ of domestic firms following the COVID-19 pandemic. FDI in India has increased by 16 percent to $27.1 billion during April-August period of FY21 as compared to $23.35 billion received in same period last year.

The CNX Nifty is currently trading at 11735.75, up by 6.15 points or 0.05% after trading in a range of 11609.20 and 11744.15. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.22%, Asian Paints up by 2.10%, Bajaj Finance up by 1.62%, Ultratech Cement up by 1.56% and Reliance Industries was up by 1.39%. On the flip side, Larsen & Toubro down by 3.74%, ONGC down by 2.79%, Titan Company down by 2.61%, Tata Motors down by 2.15% and Adani Ports & SEZ down by 1.94% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 86.57 points or 0.37% to 23,331.94, Straits Times trembled 17.07 points or 0.69% to 2,466.41, Hang Seng decreased 96.70 points or 0.39% to 24,612.10, Taiwan Weighted dropped 130.84 points or 1.02% to 12,662.91 and KOSPI was down by 18.59 points or 0.79% to 2,326.67. On the other hand, Shanghai Composite was up by 16.35 points or 0.5% to 3,285.59.

 

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