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Indian benchmarks traded flat in noon session, with Sensex losing 11 points, while Nifty was up by 8 points. Traders were concerned as activities in services, the biggest sector in Indian economy, moderated in September compared to August though states eased restrictions to slow down the coronavirus. Activities still grew second fastest since February 2020. PMI declined to 55.2 in September from 56.7 in August. In PMI lexicon, a reading above 50 shows expansion, while below it means contraction. RBI monetary policy and TCS second-quarter results due on October 08 are the two key events which will be widely tracked. RBI is expected to maintain its policy rates but it may lay the roadmap for stimulus tapering in line with other central banks. TCS would mark the start of Q3FY22 earnings season which is expected to continue the strong earnings momentum. On the sectoral front, banking stocks were in limelight as Reserve Bank gave licence to the Rs 6,000 crore National Asset Reconstruction Company (NARCL), a move that will help kickstart the operations of the bad bank. On the global front, Asian markets were trading mostly in red as markets fretted about the impact of multi-year high oil prices at a time when supply chain disruptions are already putting pressure on economic activity.

The BSE Sensex is currently trading at 59287.96, down by 11.36 points or 0.02% after trading in a range of 59127.04 and 59335.48. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.31%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.45%, Power up by 2.43%, Telecom up by 2.09%, Utilities up by 2.05% and PSU was up by 1.19%, while Realty down by 1.23%, IT down by 0.49%, Healthcare down by 0.42%, Bankex down by 0.34% and Consumer Durables was down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.05%, Indusind Bank up by 1.88%, Asian Paints up by 1.62%, Maruti Suzuki up by 1.12% and NTPC was up by 0.96%. On the flip side, Sun Pharma down by 0.99%, ICICI Bank down by 0.81%, SBI down by 0.72%, Dr. Reddy's Lab down by 0.71% and Kotak Mahindra Bank was down by 0.66% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that short-term power prices are likely to remain elevated in the near term on account of a continued increase in imported coal prices. It noted that a large part of the increased power generation would continue to be met through coal-based plants, although coal output is not increasing to the desired level. It said this is reflected in low inventory stocks at power plants, and therefore, a part of the increased energy demand will have to be met through imported coal.

According to the report, the average inventory at thermal power stations increased to 38.6 mt in 2020-21, led by a decline in thermal power generation requirement (2019-20: 28.6 mt). However, it said that with an increase in thermal generation requirement, the inventory levels are now correcting, and have reduced to an average of 23.6 mt in the period under review. It pointed out that the speedy recovery in power demand post the second wave of COVID-19 infections, coupled with lower than adequate domestic coal production, led to a reduction in coal inventory levels at various power plants.

Ind-Ra estimates an increased imported coal requirement likely in second half of 2021-22 as domestic coal production would increase gradually. Alternatively, in case the PLFs (plant load factor) of imported coal-based plants would continue to remain low due to high international coal prices, it estimates the energy deficits are likely to increase in the second half.

The CNX Nifty is currently trading at 17700.00, up by 8.75 points or 0.05% after trading in a range of 17640.90 and 17709.00. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were ONGC up by 8.16%, Indian Oil Corporation up by 2.97%, Coal India up by 2.66%, UPL up by 2.14% and Bharti Airtel was up by 2.03%. On the flip side, Cipla down by 2.20%, Shree Cement down by 1.48%, Hindalco down by 1.12%, Sun Pharma down by 1.10% and ICICI Bank was down by 0.86% were the top losers.

Asian markets were trading mostly lower; KOSPI fell 57.01 points or 1.89% to 2,962.17, Nikkei 225 slipped 622.77 points or 2.19% to 27,822.12, Hang Seng decreased 21.84 points or 0.09% to 24,014.53, Jakarta Composite lost 45.55 points or 0.72% to 6,297.14 and Straits Times was down by 27.12 points or 0.88% to 3,062.53.On the flip side; Taiwan Weighted was up by 52.40 points or 0.32% to 16,460.75.

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