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Published on 16/10/2020 1:13:25 PM | Source: LKP Securities Ltd

Bourses add gains in afternoon deals - LKP Securities

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

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Bourses add gains in afternoon deals

Indian equity indices added gains to trade firm in afternoon session, with both Sensex and Nifty were trading above 39,800 and 11,700 marks, respectively. The sentiments remained positive with Minister of State for Finance Anurag Singh Thakur’s statement that the Atmanirbhar Bharat Abhiyan package is aimed at making India a global hub of manufacturing and services. The government announced the Rs 20.97 lakh crore package in May largely focussed on supply side and long-term reforms in agriculture, labour, mining and defence sector to attract private sector investment. Some support also came with reports that the central government will borrow up to Rs 1.10 lakh crore on behalf of the states to bridge the shortfall in GST collections. In scrip specific developments, UPL tumbled after KPMG resigned as the auditor with effect from October 8 for the company’s material arm in Mauritius - UPL Corporation, in order to re-organise the Audit Process to improve productivity, at the request of the company.

On the global front, Asian markets were trading mostly in red amid resurgence in corona virus infections and concerns about global economic recovery. Back home, the BSE Sensex is currently trading at 39865.50, up by 137.09 points or 0.35% after trading in a range of 39699.42 and 40125.71. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.65%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Bankex up by 1.45%, Consumer Durables up by 1.03%, Healthcare up by 1.00%, Metal up by 0.90% and Utilities was up by 0.79%, while Energy down by 0.47%, IT down by 0.29% and TECK was down by 0.24% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.07%, Power Grid Corporation up by 1.99%, Kotak Mahindra Bank up by 1.96%, Indusind Bank up by 1.85% and Axis Bank was up by 1.82%. On the flip side, HCL Tech down by 3.54%, Mahindra & Mahindra down by 1.57%, Reliance Industries down by 0.76%, Nestle down by 0.59% and Asian Paints was down by 0.58% were the top losers.

Meanwhile, after contracting for six straight months, India’s merchandise exports grew by 5.99 percent to $27.58 billion in September 2020 as compared to same period of last year, on account of growth in shipments of drugs and pharmaceuticals and readymade garments. Trade deficit, gap between imports and exports, narrowed to $2.72 billion in September 2020 as compared to a shortfall of $11.67 billion in the year ago-month.

As per the data released by the Commerce Ministry, merchandise exports rose by 5.99% to $27.58 billion in September 2020, as compared to $26.02 billion in the same month a year ago. In Rupee terms, it was up by 9.19% to Rs 2,02,694.07 crore in September 2020, as compared to Rs 1,85,642.32 crore in September 2019. Cumulative value of exports for the period April- September 2020-21 was $125.25 billion as against $159.16 billion during the period April- September 2019-20, registering a negative growth of 21.31%.  In Rupee terms, it was down by 15.74% to Rs 9,38,529.94 crore from Rs 11,13,886.17crore.

Non-petroleum and Non Gems and Jewellery exports in September 2020 were $104.51 billion, as compared to $118.65 billion in September 2019, exhibiting a positive growth of 11.94%. Non-petroleum and Non Gems and Jewellery exports in April- September 2020-21 were $104.51 billion, as compared to $118.65 billion for the corresponding period in 2019-20.

On the other hand, imports during September 2020 decreased by 19.60% to $30.31 billion as compared to $37.69 billion in September 2019, while in rupee terms it was down by 17.18% to Rs 2,22,708.15 crore from Rs 2,68,891.09 crore in September 2019.  Cumulative value of imports for the period April- September 2020-21 was $148.69 billion, as against $248.08 billion during the period April- September 2019-20, registering a negative growth of 40.06%. In rupee terms, it was Rs 11,14,686.58 crore, down by 35.77% from Rs 17,35,550.99 crore in the same period last year.   

Oil imports in September 2020 were $5.83 billion, which were 35.88% lower, compared to $9.09 billion in September 2019. Oil imports in April- September 2020-21 were $31.86 billion which were 51.14% lower compared to $65.20 billion, over the same period last year. Non-oil imports during September 2020 were estimated at $24.48 billion which was 14.43% lower than non-oil imports of $28.61 billion in September 2019. Non-Oil and Non-Gold imports were $23.88 billion in September 2020, down 12.63% over the same period of last year. Non-Oil and Non-Gold imports were $110.05 billion in April- September 2020-21, down 34.13%, over the same period of last year.

The CNX Nifty is currently trading at 11726.25, up by 45.90 points or 0.39% after trading in a range of 11667.85 and 11784.10. There were 37 stocks advancing against 12 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Divis Lab up by 2.82%, BPCL up by 2.20%, Tata Steel up by 2.06%, Indusind Bank up by 2.03% and Kotak Mahindra Bank was up by 2.00%. On the flip side, UPL down by 6.43%, HCL Tech down by 3.72%, Mahindra & Mahindra down by 1.62%, Reliance Industries down by 0.68% and Coal India was down by 0.68% were the top losers.

Asian markets were trading mostly lower; KOSPI fell 19.68 points or 0.83% to 2,341.53, Taiwan Weighted dropped 77.45 points or 0.6% to 12,750.37, Shanghai Composite declined 2.06 points or 0.06% to 3,330.12, Jakarta Composite lost 24.07 points or 0.47% to 5,081.08 and Nikkei 225 was down by 96.60 points or 0.41% to 23,410.63.

On the flip side, Straits Times advanced 5.15 points or 0.2% to 2,528.77 and Hang Seng was up by 227.83 points or 0.94% to 24,386.37.

 

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