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Benchmarks hold strength in afternoon deals
Oct-27-2020

Indian equity benchmarks continued to trade higher in afternoon session, on account of broad based buying in blue chip counters. Buying in frontline stocks such as Kotak Mahindra Bank, Nestle and Asian Paints were aiding sentiment, while selling in Infosys, ONGC and HDFC kept the gains in the markets in check. Traders took encouragement, as Reserve Bank asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for loans up to Rs 2 crore for the six months moratorium period beginning March 1, 2020. On October 23, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. Adding optimism, rating agency CRISIL stated that over 40% of banking system credit and 75% of borrowers are likely to benefit from interest-on-interest concession granted by the federal government.

On the global front, Asian markets were trading mostly lower as surge in coronavirus infections world wide as well as on fading hopes for US fiscal stimulus before next week's presidential elections. Back on street, in scrip specific developments, Finolex Industries surged on reporting 20% rise in Q2 consolidated net profit and Tata Motors inched up on producing over 40 lakh units under passenger vehicle vertical.

The BSE Sensex is currently trading at 40330.71, up by 185.21 points or 0.46% after trading in a range of 39978.39 and 40388.01. 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 1.07%, while Small cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were Bankex up by 2.22%, Power up by 1.62%, Auto up by 1.47%, Consumer Discretionary up by 1.46% and FMCG was up by 1.26%, while IT down by 1.42%, TECK down by 1.21%, Telecom down by 0.47% and Energy was down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 9.60%, Nestle up by 4.74%, Asian Paints up by 4.08%, Bajaj Finance up by 3.76% and NTPC was up by 3.43%. On the flip side, Infosys down by 2.34%, ONGC down by 1.39%, HDFC down by 1.09%, TCS down by 1.03% and Sun Pharma was down by 0.94% were the top losers.

Meanwhile, India has started a probe into the alleged dumping of low-density polyethylene (LDPE) from Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and the US, following a complaint by an industry association. Chemicals and Petrochemicals Manufacturers Association on behalf of the domestic industry has filed an application before the commerce ministry's investigation arm the Directorate General of Trade Remedies (DGTR) for initiation of an anti-dumping investigation on imports of LDPE from six countries.

According to a notification of the DGTR, the applicant has alleged that the domestic industry has impacted due to dumped imports of LDPE from these countries. The association has requested for the imposition of anti-dumping duty on the import. On the basis of the duly substantiated written application by or on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted, about dumping of the subject goods...the authority, hereby, initiates an investigation.

In the probe, DGTR will determine the existence, degree and effect of alleged dumping on domestic manufacturers. If it is established that the dumping has impacted the domestic industry, the directorate would recommend imposition of anti-dumping duty. The finance ministry will take the final decision on imposing these duties.

The CNX Nifty is currently trading at 11834.40, up by 66.65 points or 0.57% after trading in a range of 11723.00 and 11848.20. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 9.39%, Shree Cement up by 5.46%, Nestle up by 4.71%, Asian Paints up by 4.21% and Bajaj Finance was up by 3.80%. On the flip side, Infosys down by 2.42%, Wipro down by 2.00%, Adani Ports & SEZ down by 1.98%, ONGC down by 1.47% and GAIL India was down by 1.17% were the top losers.

Asian markets were trading mostly lower; Nikkei 225 slipped 8.54 points or 0.04% to 23,485.80, Straits Times trembled 10.75 points or 0.43% to 2,512.56, KOSPI fell 13.07 points or 0.56% to 2,330.84, Jakarta Composite lost 1.71 points or 0.03% to 5,142.34, Hang Seng decreased 135.03 points or 0.54% to 24,783.75 and Taiwan Weighted was down by 34.02 points or 0.26% to 12,875.01. On the other hand; Shanghai Composite was up by 3.11 points or 0.1% to 3,254.23.
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