Jubilation continues at Dalal Street for the fourth straight day; Nifty reclaims 8,100 mark

Prolonging their northward journey for fourth straight session, benchmark equity indices have made a positive start and are currently trading with vigor on sustained buying by market participants on Friday. Sentiments got a boost with the global rating agency Fitch in its Global Economic outlook stating that India's economic growth will accelerate to 8 percent by 2018-19 fiscal as gradual implementation of structural reforms will contribute to higher growth. Further, traders were also getting encouragement with Commerce Minister Nirmala Sitharaman’s statement that it is ‘possible’ for the country to reach top 50 in the World Bank's Doing Business ranking in the next few years. India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from 2014. Meanwhile, CII Director General Chandrajit Banerjee stated that in two years, the NDA government has strategically navigated the Indian economy to all-round stability. The government has undertaken big bang structural reforms, including more power in the hands of states, establishment of NITI Aayog and empowerment of markets. Besides, appreciation in Indian rupee against dollar too supported sentiments. Rising for the third consecutive day, the rupee rose 12 paise to 67.05 to against the US dollar on Friday amid firm trading in other Asian currencies.

In the scrip specific development, Bharat Petroleum Corporation (BPCL) surged over 6 percent on the BSE after the company’s board recommended the issue of bonus shares in the ratio of 1:1 i.e. one new bonus equity share of Rs 10 each for every existing one fully paid up equity share.

On the global front, US markets ended mixed on Thursday, with investors looking ahead to comments from Federal Reserve Chair Janet Yellen. Asian markets were trading mostly in green, shrugging off the mixed cues overnight from Wall Street. However, gains were modest in most markets as investors waited for clues about the next US interest rate hike from Federal Reserve Chair Janet Yellen's speech later in the day.

Back Home, on the sectoral front Oil & Gas witnessed the maximum gain in trade followed by Realty, PSU, Metal and Banking, while FMCG remained the only loser on the BSE sectoral space. The market breadth on BSE was positive in the ratio of 1047: 516 while 83 scrips remained unchanged.

The BSE Sensex is currently trading at 26541.69, up by 175.01 points or 0.66% after trading in a range of 26405.28 and 26566.20. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.72%, while Small cap index gained 0.67%.

The gaining sectoral indices on the BSE were Oil & Gas up by 2.08%, Realty up by 2.05%, PSU up by 1.36%, Metal up by 0.95% and Bankex up by 0.81%, while FMCG down by 0.08% was the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 3.92%, Lupin up by 3.28%, SBI up by 2.20%, Adani Ports &Special up by 1.89% and Cipla up by 1.37%. On the flip side, Tata Motors down by 0.50%, ITC down by 0.43%, Bharti Airtel down by 0.27%, BHEL down by 0.23% and NTPC down by 0.21% were the top losers.

Meanwhile, global rating agency Fitch Ratings in its latest ‘Global Economic outlook’ has said that it expects India's real GDP growth to rise to 8 percent by 2018-19, from 7.9 percent in 2017-18 and 7.7 percent in 2016-17, on broadening reform agendas and government resolve to implement them, as gradual implementation of structural reforms will contribute to higher growth. Though, it also pointed that reforms related to land acquisition and a Goods and Services Tax have not passed thus far.

Fitch said that gradual implementation of the structural reform agenda, which continues to broaden, is expected to contribute to higher growth. Passing of the new Bankruptcy Code in both houses of Parliament in May 2016 shows that implementation of big ticket reforms is possible in India.

The rating agency further highlighted that policy-rate cuts in India and Indonesia, for example, are likely to feed through to higher GDP growth. Monetary easing has been facilitated by external factors, as low oil prices have contained inflation and narrowed current account deficits

As regards global growth, Fitch said emerging market weakness and declining investment spending by global energy producers continue to take a heavy toll on world growth. Fitch forecast it at 2.5 percent in 2016, unchanged from 2015. It said that global growth should pick up to around 3 percent in 2017 as GDP stabilises in Russia and Brazil and the drag from energy adjustments starts to fade. It projected global growth to remain around 3 percent in 2018, with Fed rate hikes picking up pace. Though, it has revised the growth of China to 6.3 percent in 2016 and 2017 and said that there has been increasing evidence in recent months of previous policy stimulus gaining traction on activity.

The CNX Nifty is currently trading at 8124.50, up by 54.85 points or 0.68% after trading in a range of 8077.05 and 8126.40. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were BPCL up by 5.08%, Sun Pharma Inds. up by 3.93%, Lupin up by 3.35%, Aurobindo Pharma up by 2.83% and SBI up by 2.01%. On the flip side, BHEL down by 0.74%, Tech Mahindra down by 0.70%, Tata Motors down by 0.44%, ITC down by 0.39% and NTPC down by 0.39% were the top losers.

Asian markets were trading mostly in red, Jakarta Composite increased 0.29 points or 0.01% to 4,784.86, FTSE Bursa Malaysia KLCI increased 2.77 points or 0.17% to 1,633.86, KOSPI Index increased 5 points or 0.26% to 1,962.06, Taiwan Weighted increased 29.73 points or 0.35% to 8,423.85 and Nikkei 225 increased 73.86 points or 0.44% to 16,846.32.

On the flip side, Hang Seng decreased 59.48 points or 0.29% to 20,337.63 and Shanghai Composite decreased 8.41 points or 0.3% to 2,814.03.