Benchmarks continue firm trade in late afternoon session

Indian equity benchmarks continued its firm trade in the late afternoon session on account of buying in frontline blue chip counters. The sentiments were on firm note from early trade after global rating agency, Fitch Ratings in its latest ‘Global Economic outlook’ stated that it expects India’s real GDP growth to rise to 8% by 2018-19, from 7.9% in 2017-18 and 7.7% in 2016-17, on broadening reform agendas and government resolve to implement them, as gradual implementation of structural reforms will contribute to higher growth. Traders were seen piling position in Oil & Gas, Realty and IT sector stocks. In scrip specific development, Bharat Petroleum Corporation (BPCL) was trading firm after the company posted better-than-expected earnings. For the financial year 2016, its earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 40% from a year ago due to higher gross refining margin of $6.6 a barrel, which was up 80% on-year.

On the global front, the Asian markets were trading mostly in green while the European markets traded on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,150 and 26,600 levels respectively. The market breadth on BSE was positive in the ratio of 1378:1049 while 200 scrips remained unchanged.

The BSE Sensex is currently trading at 26645.83, up by 279.15 points or 1.06% after trading in a range of 26405.28 and 26662.64. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.43%, while Small cap index up by 0.69%.

The gaining sectoral indices on the BSE were Oil & Gas up by 2.99%, Realty up by 1.67%, IT up by 1.23%, Metal up by 1.21%, TECK up by 1.19%

The top gainers on the Sensex were Sun Pharma up by 5.31%, Adani Ports & Special Economic Zone up by 4.19%, Reliance Industries up by 2.47%, Bajaj Auto up by 1.99% and ICICI Bank up by 1.91%.

On the flip side, ONGC down by 1.71%, Axis Bank down by 0.93%, NTPC down by 0.46% and ITC down by 0.39% were the top losers.

Meanwhile, industry body Confederation of Indian Industry (CII), praising the development work taken by the government in last two years has said that in two years the NDA government has strategically navigated the Indian economy to all-round stability. It has undertaken big bang structural reforms, including more power in the hands of states, establishment of NITI Aayog and empowerment of markets.

Chandrajit Banerjee, director general of CII said that for investors, critical achievements of the government relate to inflation control, more public investment in infrastructure, social security, fiscal management and tax administration. Banerjee pointing out the highest ever inflow of FDI at $55 billion in 2015-16 said that the strong emphasis on ease of doing business is delivering results.

CII director-general has also said that “We are optimistic that India’s ease of doing business ranking can rise to among the top 50 from the current 130 within the next two years with sustained micro-level actions.”

Recently, the industry body had said that after two years of government in office now focus should be on building political consensus for passage of long- pending Goods and Services Tax (GST) Bill and on expediting the non-legislative reforms.

The CNX Nifty is currently trading at 8152.60, up by 82.95 points or 1.03% after trading in a range of 8077.05 and 8162.20. There were 41 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were BPCL up by 8.79%, Sun Pharma up by 5.27%, Adani Ports & Special Economic Zone up by 4.11%, Aurobindo Pharma up by 2.55% and Reliance Industries up by 2.44%.

On the flip side, ONGC down by 1.67%, Axis Bank down by 0.99%, Tech Mahindra down by 0.89%, NTPC down by 0.64% and ITC down by 0.52% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.59 points or 0.04% to 1,631.68, Jakarta Composite increased 10.49 points or 0.22% to 4,795.05, KOSPI Index increased 12.11 points or 0.62% to 1,969.17, Nikkei 225 increased 62.38 points or 0.37% to 16,834.84, Taiwan Weighted increased 69.49 points or 0.83% to 8,463.61 and Hang Seng increased 179.66 points or 0.88% to 20,576.77.

On the other hand, Shanghai Composite decreased 1.4 points or 0.05% to 2,821.05.

The European markets were trading in red; UK’s FTSE 100 decreased 0.24 points to 6,265.41, Germany’s DAX decreased 17.73 points or 0.17% to 10,254.98 and France’s CAC decreased 11.66 points or 0.26% to 4,500.98.