Jubilation continues on Dalal Street in noon deals

Indian equity benchmarks continued to trade jubilantly in noon deals as sentiments remained up-beat after private weather forecaster Skymet has predicted an above normal monsoon in India, starting in July. Moreover, covering-up of pending short positions by speculators in view of tomorrow’s May monthly expiry in the derivatives segment contributed to the rally. Positive global cues too were providing support to domestic markets. Asian markets rallying at this point of time, with the regional equities benchmark gauge rebounding from a seven-week low, after a surge in US home sales fuelled speculation the world’s biggest economy can withstand higher interest rates.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. On sectoral front, infra sector stocks remained on buyers’ radar with the government announcing the names of 13 more cities that will be developed under the Centre’s “Smart City Mission.” Each city will receive Central assistance of Rs. 200 crore in the first year and Rs. 100 crore over the three subsequent financial years. Oil exploration and production stocks too edged higher on increase in crude oil prices.

The BSE Sensex is currently trading at 25723.14, up by 417.67 points or 1.65% after trading in a range of 25430.59 and 25755.02. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.95%, while Small cap index up by 0.94%.

The top gaining sectoral indices on the BSE were Bankex up by 2.48%, Capital Goods up by 2.16%, Finance up by 2.12%, IT up by 1.80% and TECK up by 1.72%, while there was no loser on the BSE sectoral index.

The top gainers on the Sensex were ICICI Bank up by 4.06%, Larsen & Toubro up by 2.78%, Maruti Suzuki up by 2.69%, HDFC up by 2.60% and SBI up by 2.48%. On the flip side, Cipla down by 4.73% was the lone loser.

Meanwhile, industry body, the Federation of Indian Chambers of Commerce & Industry (FICCI) has welcomed the signing of the long envisioned agreement on developing the key Chabahar port between India and Iran as a landmark development and a big leap forward in co-operation between Iran and India. The Federation in its statement on the development has said that Prime Minister Narendra Modi’s outreach to Tehran has infused vigour into the momentum to develop connectivity, infrastructure and in India’s energy security goals. Chabahar port, located in the Sistan-Baluchistan Province on Iran's southern coast, is of great strategic importance for India.

The industry body added that the signing of commercial contract for the Chabahar Phase 1 will open a route to land-locked Afghanistan and cut transport costs/time by third.  India and Iran had in 2003 agreed to develop Chabahar on the Gulf of Oman outside the Strait of Hormuz, near Iran's border with Pakistan. India, Iran and Afghanistan inked an agreement on the Chabahar port on the Gulf of Oman that will make it a transport and transit hub to boost trade.

The bilateral agreement to develop the Chabahar port and related infrastructure signed by Prime Minister Narendra Modi and Iranian President Hassan Rouhani, underlines the extraordinary strategic opportunities that present themselves for India in the region. The signing of commercial contract for the Chabahar Phase 1 will open a route to land-locked Afghanistan and cut transport costs/time by third. The development of the port for which India will provide $500 million will help Indian companies enhance engagement in Iran and gain access to Afghanistan & Central Asia. In the long run Chahabar will also serve as the point of origin for the proposed Iran-Oman-India pipeline.

FICCI added that a multiplier effect rests on the possibility that other international investors may also see the rationale of this important investment, thus paving the way for creation of a strategic bulwark that facilitates greater flow of people and goods among the three countries, as well as in the region and contributes to economic growth of Afghanistan. FICCI also sees PM Modi’s timely visit to Iran setting the stage for boosting trade in a big way.

The CNX Nifty is currently trading at 7888.85, up by 140.00 points or 1.81% after trading in a range of 7809.30 and 7893.65. There were 50 stocks advancing against 1 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 7.24%, ICICI Bank up by 4.12%, Indusind Bank up by 3.70%, HDFC up by 2.91% and Ambuja Cement up by 2.88%. On the flip side, Cipla down by 4.60% was the lone loser.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI marginally up by 0.03 points to 1,625.87, Shanghai Composite rose 0.79 points or 0.03% to 2,822.46, KOSPI Index surged 22.83 points or 1.18% to 1,960.51, Jakarta Composite increased 40.02 points or 0.85% to 4,750.80, Taiwan Weighted jumped 95.54 points or 1.15% to 8,396.20, Nikkei 225 soared 258.59 points or 1.57% to 16,757.35 and Hang Seng was up by 514.03 points or 2.59% to 20,344.46.