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Barometer gauges maintain gains; Nifty reclaims 12000 mark
Nov-20-2019

Stock markets were trading in fine fettle in the early noon session due to buying in Energy, Telecom and Oil & Gas sectors. Besides, Indusind Bank, Reliance Industries and Bharti Airtel were contributing most of the gain to Sensex, while Zee Entertainment, Adani Ports & Special and Sun Pharma were contributing the most of gain to Nifty. Besides, telecom stocks were trading higher as the telecom regulator will wait for operators to report their new tariffs to the authority before taking a view on whether the revised pricing is within the regulatory framework. At present, both Sensex and Nifty were trading above the crucial 40,700 and 12,000 levels respectively.

On the global front, Asian markets were trading in red; following lackluster cues from US stock market after reports said that US President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two economic powerhouses, dulling prospects for the deal between two super powers of the world. Back on street, broader markets were trading in green, supporting their larger peers. The market breadth on BSE was positive, out of 2273 stocks traded, 1106 stocks advanced, while 1017 stocks declined on the BSE. In scrip specific development, share of Avanti Feeds soared as its arm incorporates WOS Company.

The BSE Sensex is currently trading at 40736.35, up by 266.65 points or 0.66% after trading in a range of 40575.96 and 40816.38. There were 19 stocks advancing against 11 stocks declining, while, 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Energy up by 2.61%, Telecom up by 1.36%, Oil & Gas up by 1.21%, Healthcare up by 0.93% and Industrials was up by 0.85%, while Consumer Durables down by 0.40%, Realty down by 0.33%, Power down by 0.31%, IT down by 0.14% and Utilities was down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.21%, Reliance Industries up by 3.52%, Sun Pharma up by 2.57%, Bharti Airtel up by 1.37% and Larsen & Toubro was up by 1.25%. On the flip side, Kotak Mahindra Bank down by 0.82%, Bajaj Auto down by 0.82%, SBI down by 0.74%, NTPC down by 0.72% and HCL Technologies was down by 0.57% were the top losers.

Meanwhile, CARE Ratings in its latest study report has showed that the pace of employment growth in India has slowed down in the past two years, to 3.9 percent in 2017-18 and 2.8 percent in 2018-19 as the core industries have observed virtually, negative growth in hiring. It noted that growth in employment was 2.5 percent in 2015-16, 4.1 percent in 2016-17. Therefore, it said that employment growth has slowed down in the past two years after a sharp recovery in 2016-17.

Ideally, the study observed that the rate of growth in employment must link with growth in the gross domestic product (GDP), which is the broadest indicator of economic activity. However, it said employment growth has not been commensurate with GDP growth with a difference of 4.2 percent in CAGR during this period. Besides, it pointed out that the top 10 sectors covering 895 companies with the employment of 4.70 million in 2018-19 accounted for three fourth of the total employment of the sample companies. Of this 42.4 percent of employment, it said the share was from three service industries while the balance was from manufacturing (30 percent) and agriculture (3 percent).

According to the report, overall the share of employment in services is around 50 percent. Sector-wise, it revealed that the core industries have witnessed virtually negative growth in headcount, with crude oil just about maintaining the employment level. It also said these industries have been impacted by the slowdown in GDP growth as well as the challenges on the NPA side for banks. It added that a similar picture is witnessed for the heavy industries where growth has tended to be negative for power and capital goods and just 0.4 percent for infra.

However, the agency stated that the consumer-oriented industries showed a varied pattern, like in the agricultural and durable goods there has been a deceleration in employment while there has been an increase for FMCG and textiles albeit at a lower than sample average of 3.3 percent. The manufacturing had witnessed fairly good growth in employment with 5 of the 8 industries registering higher than sample growth in employment. Two sectors have witnessed negative growth, which is paper and gems and jewelry, while chemicals recorded growth of just 1.6 percent. Healthcare and automobiles have registered a healthy growth of 4.8 percent in employment, which is quite impressive.

The CNX Nifty is currently trading at 12014.30, up by 74.20 points or 0.62% after trading in a range of 11966.05 and 12038.55. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 4.21%, Zee Entertainment up by 3.92%, Reliance Industries up by 3.51%, Adani Ports &Special up by 3.08% and Sun Pharma was up by 2.59%. On the flip side, Bharti Infratel down by 3.57%, Eicher Motors down by 1.20%, Kotak Mahindra Bank down by 0.87%, Bajaj Auto down by 0.82% and SBI was down by 0.76% were the top losers.

All Asian markets were trading in red; Straits Times trembled 8.01 points or 0.25% to 3,230.86, Nikkei 225 slipped 135.68 points or 0.58% to 23,156.97, Jakarta Composite lost 5.02 points or 0.08% to 6,147.07, KOSPI fell 24.46 points or 1.14% to 2,128.78, Hang Seng decreased 149.11 points or 0.55% to 26,944.69, Taiwan Weighted dropped 25.20 points or 0.22% to 11,631.20 and Shanghai Composite was down by 15.84 points or 0.54% to 2,918.15.
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