Jubilation continues on Dalal Street in noon deals

Indian markets continuing their jubilation were trading higher by around a percent in afternoon deals. The benchmarks after making a gap-up opening have been strengthening gradually with no sign of any profit taking till yet and frontline gauges recapturing their crucial psychological mark of 28,100 (Sensex) and 8,500 (Nifty). Sentiments remained up-beat after rating agency Moody’s said that the Reserve Bank of India may possibly cut interest rates in its next monetary policy review due next month despite retail inflation surging to an eight-month high in June. The historic deal between Iran and global powers too has improved sentiment owing to a further drop in the oil prices.

On the global front, European counters have made a weak start with CAC, DAX and FTSE, all were trading marginally in red. Asian markets were trading mostly in green at this point of time after data showed China’s economy grew more than expected in the second quarter. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. On the sectoral front, auto, realty and software witnessed the maximum gain in trade, while consumer durables remained the lone loser on the BSE sectoral space. The market breadth on the BSE was positive; there were 1,659 shares on the gaining side against 902 shares on the losing side while 110 shares remain unchanged.

The BSE Sensex is currently trading at 28189.83, up by 256.93 points or 0.92% after trading in a range of 27986.48 and 28200.17. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.80%.

The top gaining sectoral indices on the BSE were Auto up by 1.27%, Realty up by 1.14%, IT up by 1.14%, TECK up by 0.97% and Healthcare up by 0.81%, while Consumer Durables down by 0.56% was the lone losing index on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.12%, Wipro up by 1.95%, Mahindra & Mahindra up by 1.62%, HDFC up by 1.45% and TCS up by 1.42%. On the flip side, GAIL India down by 0.04% and Hindustan Unilever down by 0.02% were the top losers.

Meanwhile, in order to increase the performance of India’s overseas shipments, the government will soon set up a Trade Facilitation Council consist of members of Centre and states. This council will be chaired by Commerce and Industry Minister Nirmala Sitharaman and secretaries of key ministries and state ministers will be the members and the main objective of this council will be facilitating trade from states.

To discuss the issue related with local problems and hindrances that come in their way while exporting their produce, commerce secretary Rita Teotia will be meeting representatives from the state governments, which will pave the way for the committee to achieve three key goals such as infrastructure development, easing regulatory environment and addressing concerns related to local taxes and their refund. The government will also push those states that do not have a stipulated export policy to devise their own state trade policy of sorts under the broad framework of the Foreign Trade Policy (FTP) 2015-2020.

Merchandise exports from country have been declining continuously for the last six months. In May 2015 exports contracted 20.19 percent to $22.34 billion compared to $28 billion last year. In the first two months of current financial year, total exports were lower by 17.21 percent to $44.40 billion as compared to $53.63 billion last fiscal.

Earlier, the government had announced several incentives in the five-year Foreign Trade Policy (FTP) for exporters and units in the Special Economic Zones, in order to nearly double India’s exports of goods and services to $900 billion by 2020.

The CNX Nifty is currently trading at 8524.05, up by 69.95 points or 0.83% after trading in a range of 8462.95 and 8526.20. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.00%, Ultratech Cement up by 2.30%, Wipro up by 2.12%, Grasim Industries up by 1.78% and ACC up by 1.74%. On the flip side, BPCL down by 0.80%, Yes Bank down by 0.68%, HCL Tech down by 0.53%, Bank Of Baroda down by 0.10% and GAIL India down by 0.08% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 2.63 points or 0.15% to 1,723.73, Taiwan Weighted rose 12.44 points or 0.14% to 9,054.20, KOSPI Index gained 13.68 points or 0.66% to 2,072.91, Straits Times jumped 15.23 points or 0.46% to 3,331.73 and Nikkei 225 was up by 78 points or 0.38% to 20,463.33.

On the flip side, Hang Seng decreased 149.69 points or 0.6% to 24,971.22, Shanghai Composite shed 147.93 points or 3.77% to 3,776.56 and Jakarta Composite was down by 40.19 points or 0.82% to 4,861.62.

European Markets were trading in the red; Germany’s DAX lost 0.07%, UK’s FTSE dipped 0.12% and France’s CAC was down by 0.03%.