Sensex, Nifty turn green in afternoon deals
Local equity benchmarks erased all the losses to turn positive in afternoon session, both Sensex and Nifty were trading above 43,600 and 12,750 marks, respectively. Buying in frontline stocks such as Bajaj Finserv, Titan Company and Nestle were aiding sentiment, while selling in Reliance Industries, Indusind Bank and Axis Bank kept the gains in the markets in check. Some support came with Prime Minister Narendra Modi’s statement that the belief in democracy, rule of law and freedom is the strength of the partnership between India and Luxembourg. He also said India-Luxembourg's partnership amid the COVID-19 pandemic can be beneficial for the recovery of both the countries. However, traders were cautious with head of the International Monetary Fund (IMF) statement that the while the United States and other major economies turned in better-than-expected economic performances in the third quarter, the world now faces slower momentum with a resurgence in coronavirus cases.
On the global front, Asian markets were trading mixed as traders were caught between long-term optimism over a virus vaccine and the immediate horror of surging virus infections and deaths across the world. Back home, the BSE Sensex is currently trading at 43674.07, up by 74.11 points or 0.17% after trading in a range of 43453.75 and 43889.40. 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 0.77%, while Small cap index was up by 0.46%.
The top gaining sectoral indices on the BSE were Consumer Durables up by 2.07%, Telecom up by 1.39%, IT up by 1.15%, TECK up by 1.14% and Utilities was up by 0.84%, while Energy down by 1.79%, Bankex down by 0.40%, Metal down by 0.36% and PSU was down by 0.08% were the top losing indices on BSE.
The top gainers on the Sensex were Bajaj Finserv up by 4.51%, Titan Company up by 3.63%, Nestle up by 2.68%, Tech Mahindra up by 2.26% and HCL Tech was up by 2.17%. On the flip side, Reliance Industries down by 2.23%, Indusind Bank down by 2.16%, Axis Bank down by 2.16%, SBI down by 1.56% and Sun Pharma was down by 1.28% were the top losers.
Meanwhile, S&P Global Ratings has said that the Reserve Bank of India's (RBI) swift resolution of distressed Lakshmi Vilas Bank (LVB) will keep contagion at bay and help maintain stability in the banking system. The central bank has proposed merging Lakshmi Vilas Bank with DBS Bank India (DBIL). As part of the proposal, DBIL will bring in additional capital of Rs 2,500 crore upfront, to support credit growth of the merged entity.
S&P has believed that this deal is positive for India's banking sector and will bring much-needed relief to LVB, which has been struggling for many years. It also said the RBI had put the private-sector lender under prompt corrective action (PCA, or under watch by the central bank) in September 2019, and the search for a white knight had been on since then.
The US-based rating agency further said it has always viewed the Indian government as highly supportive of the banking sector as it has consistently supported weak commercial banks by promoting the merger of distressed institutions with stronger lenders. It has historically not allowed commercial banks to fail and has swiftly stepped in to address trouble. In this case also, the RBI and the government stepped quickly to prevent any loss to the creditors, including depositors, and maintain system stability.
The CNX Nifty is currently trading at 12779.25, up by 7.55 points or 0.06% after trading in a range of 12730.25 and 12855.20. There were 30 stocks advancing against 20 stocks declining on the index.
The top gainers on Nifty were Bajaj Finserv up by 4.35%, Titan Company up by 3.47%, Nestle up by 2.59%, Tech Mahindra up by 2.31% and HCL Tech was up by 2.13%. On the flip side, Axis Bank down by 2.55%, Reliance Industries down by 2.54%, Indusind Bank down by 2.46%, SBI down by 1.71% and Adani Ports & SEZ was down by 1.62% were the top losers.
Asian markets were trading mostly in green; Straits Times advanced 27.42 points or 0.99% to 2,804.42, Hang Seng increased 71.47 points or 0.27% to 26,428.44, KOSPI rose 6.08 points or 0.24% to 2,553.50 and Shanghai Composite was up by 12.98 points or 0.39% to 3,376.07.
On the flip side; Taiwan Weighted dropped 5.99 points or 0.04% to 13,716.44, Nikkei 225 slipped 106.97 points or 0.42% to 25,527.37 and Jakarta Composite was down by 5.57 points or 0.1% to 5,588.49.
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