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Firm trade persists on Dalal Street
Nov-20-2019

Key barometer gauges continued their firm trade in afternoon session, amid buying in select blue-chip counters. Domestic sentiments remained firm with Union minister Piyush Goyal’s statement that the government has taken several steps like reduction in time to initiate anti-dumping cases to protect domestic companies from unfair trade practices. Traders took note of report that the government categorically stated that it does not intend to revise its fiscal deficit target of 3.3 percent of gross domestic product (GDP) for the current financial year notwithstanding the slowdown in economic activities. Minister of State for Finance Anurag Thakur said expenditure of various ministries and departments of the government is as per the estimates approved by Parliament. On the sectoral front, majority of auto stocks were trading in green with Minister of Heavy Industries and Public Enterprises Prakash Javadekar terming the current downturn in the automobile sector as cyclical and said the government is taking various steps including release of funds worth Rs 70,000 crore to the public sector banks to help the sector. 

On the global front, Asian markets were trading in red, on renewed concerns about the China-US trade talks after Washington lawmakers passed a bill supporting Hong Kong civil rights, a move likely to spark anger in Beijing. Back home, the BSE Sensex is currently trading at 40763.47, up by 293.77 points or 0.73% after trading in a range of 40575.96 and 40816.38. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Energy up by 2.61%, Healthcare up by 1.32%, Oil & Gas up by 1.18%, Metal up by 0.98% and Industrials was up by 0.84%, while Consumer Durables down by 0.51%, Power down by 0.47%, Realty down by 0.39%, IT down by 0.30% and Utilities was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.52%, Sun Pharma up by 3.66%, Reliance Industries up by 3.59%, Maruti Suzuki up by 2.13% and Yes Bank was up by 1.95%. On the flip side, NTPC down by 0.98%, Kotak Mahindra Bank down by 0.87%, HCL Technologies down by 0.67%, SBI down by 0.67% and Bajaj Auto was  down by 0.65% were the top losers.

Meanwhile, terming the current downturn in the automobile sector as cyclical, Minister of Heavy Industries and Public Enterprises Prakash Javadekar said that the government is taking various steps including release of funds worth Rs 70,000 crore to the public sector banks to help the sector. He also said the sector is facing a prolonged downturn due to various reasons, including reduction in finance availability and increase in cost due to upfront collection of insurance premium.

The minister noted that there is a cyclical slowdown across sectors including automotive sector since last few months. But, he said the festival season demand has shown year-on-year growth of 0.3 percent in the passenger vehicle segment. Citing reasons for the slowdown, he said increase in axle load limit for commercial vehicles by up to 25 percent expanded freight capacity, leading to shrinkage of new vehicle demand. Besides, increase in collateral for dealers from 25 percent to 60 percent resulted in reduction in inventory finance to dealers. Further, he said there has been postponement of purchases in anticipation of discounts by original equipment manufacturers (OEMs) for clearing of stock with BS-IV norms.

Elaborating on the steps being taken to help the sector, Javadekar said the government as a policy maker always attempts to keep and improve momentum of the economy through a package of measures for comprehensive and continued development of the auto sector as and when required. He said the government has taken steps such as reduction in corporate tax to 22 percent, continuation of registration of internal combustion engine vehicles in future. Besides, he said the scrappage policy for auto sector is under consideration of the government.

The CNX Nifty is currently trading at 12027.70, up by 87.60 points or 0.73% 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 Zee Entertainment up by 6.42%, Indusind Bank up by 4.47%, Reliance Industries up by 3.59%, Sun Pharma up by 3.57% and Adani Ports &SEZ was up by 2.80%. On the flip side, Bharti Infratel down by 3.49%, Indian Oil Corporation down by 1.73%, Eicher Motors down by 1.31%, NTPC down by 0.98% and Kotak Mahindra Bank was down by 0.86% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 212.19 points or 0.78% to 26,881.61, Taiwan Weighted dropped 25.20 points or 0.22% to 11,631.20, Shanghai Composite declined 19.62 points or 0.67% to 2,914.37, Jakarta Composite lost 4.91 points or 0.08% to 6,147.18, KOSPI fell 27.92 points or 1.3% to 2,125.32, Straits Times trembled 6.12 points or 0.19% to 3,232.75 and Nikkei 225 was down by 144.08 points or 0.62% to 23,148.57.
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