Markets trade higher with modest gains in early deals

Indian equity benchmarks made positive start and are trading with modest gains in early deals on Tuesday. Gains in Telecom, TECK and Healthcare shares outweighed losses in Metal, Auto and FMCG stocks. Traders took some encouragement with Union Minister Anurag Thakur’s statement that India is not facing 5 per cent economic slowdown and continues to be the fastest growing economy in the world. Thakur also said that a number of steps are being taken by the government to strengthen the economy that includes merger of banks and tax concessions to industries. Though, upside remained capped with a private report indicating that India’s real Gross Domestic Product (GDP) growth is likely to average at 5 per cent in calendar year 2019, as against 7.4 per cent last year, before picking up to 6.3 per cent in 2020 and 6.8 per cent the next year.

On the global front, Asian markets were trading mixed amid uncertainty over a US-China trade deal. As per a report, Chinese officials have grown pessimistic about the chances for a trade deal. However, investors’ sentiment was bolstered by news that the Trump administration has issued a new 90-day extension that will allow US companies to continue doing business with Chinese telecom giant Huawei Technologies.

Back home, telecom stocks were trading in green with report that the telecom regulator expects to finalize its views on the contentious call connect charges issue by the end of this month. Aviation stocks were in focus with Directorate General of Civil Aviation’s (DGCA) report that indicating some recovery in the aviation sector due to the tourist season, the domestic air passenger traffic this October increased by 3.98 per cent compared to the same month last year. In scrip specific development, Bharti Airtel gained on launching Enterprise Hub.

The BSE Sensex is currently trading at 40328.26, up by 44.07 points or 0.11% after trading in a range of 40320.35 and 40455.36. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.17%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Telecom up by 5.43%, TECK up by 0.76%, Healthcare up by 0.66%, Energy up by 0.63% and Power was up by 0.16%, while Metal down by 0.95%, Auto down by 0.53%, FMCG down by 0.51%, Consumer discretionary down by 0.34% and PSU was down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.84%, Tech Mahindra up by 1.64%, Reliance Industries up by 1.16%, Axis Bank up by 1.06% and Power Grid Corporation up by 0.58%. On the flip side, Vedanta down by 1.81%, Hindustan Unilever down by 1.13%, Hero MotoCorp down by 1.04%, Mahindra & Mahindra down by 0.84% and ONGC down by 0.78% were the top losers.

Meanwhile, expressing optimism over India’s economic growth, Union Minister Anurag Thakur has said the country is not facing 5% economic slowdown and continues to be the fastest growing economy in the world. He also said a number of steps are being taken by the government to strengthen the economy that includes merger of banks and tax concessions to industries. He said India continues to the fastest growing economy in the world even though many countries in the world are facing economic slowdown. He added the country will be a $5 trillion economy by 2025. Highlighting series of steps taken by the government to strengthen the economy, Thakur said tax concessions have been given to industries, foreign direct investments and MSME sector.

Thakur said several banks have been merged with bigger banks and ultimate aim of the government is to keep four strong banks with solid footing and ensure increased economic activities. He said strong actions have been taken against blackmoney and number of tax payers has been doubled due to demonetisation and implementation of the GST regime. He said as per the National Statistical Office, the GDP growth on average was 7.5% in 2014-19, which is the highest amongst G-20 countries. He said the World Economic Outlook (WEO) of October 2019, projects a significant slowdown in world output and trade in 2019. Yet India, despite some recent deceleration of GDP growth, is still projected by WEO to grow at the fastest rate in 2019-20 among G-20 countries.

The Union Minister further said the government has been taking several measures to address moderate levels of fixed investment rate in the economy, plateauing of private consumption rate and a modest export performance, with a view to increasing the GDP growth of the country. Implementation of Goods and Services Tax in 2017 stands out as the most important measure for improving ease of doing business in the country and Make-in-India programme is a major initiative towards increasing the indigenous capacity of the country to produce world class goods and services. He said continuous liberalisation has resulted in record and unprecedented inflows of foreign direct investment into the country.

The CNX Nifty is currently trading at 11,888.90, up by 4.50 points or 0.03% after trading in a range of 11881.75 and 11925.70. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 5.71%, Bharti Airtel up by 4.95%, Cipla up by 2.94%, Tech Mahindra up by 1.47% and Axis Bank up by 1.08%. On the flip side, Zee Entertainment Enterprises down by 2.23%, Vedanta down by 1.22%, GAIL (India) down by 0.92%, Tata Consultancy Services down by 1.24% and UPL down by 1.08% were the top losers.

Asian markets were trading mixed; Hang Seng increased 226.10 points or 0.85% to 26,907.19, Shanghai Composite gained 13.41 points or 0.46% to 2,922.61, Taiwan Weighted strengthened 13.31 points or 0.11% to 11,613.09 and Jakarta Composite soared 8.02 points or 0.13% to 6,130.65. On the flip side, KOSPI fell 12.34 points or 0.57% to 2,148.35, Straits Times trembled 21.66 points or 0.66% to 3,237.00 and Nikkei 225 was down by 92.28 points or 0.39% to 23,324.48.