Markets trade higher in early deals

After falling around quarter a per cent in last session, Indian equity benchmarks have made a positive start and are now trading  in fine fettle, supported by robust gross domestic product (GDP) number which grew 7.6% in 2015-16, up from 7.2% a year ago. Further, traders were also getting encouragement with growth in the eight core sectors, which jumped to 8.5% in April, on account of a sharp pick-up in refinery products and a commensurate rise in electricity generation. The country’s fiscal deficit for 2015-16 was Rs 5.32 lakh crore, about 99.5 per cent of the government’s revised target of Rs 5.35 lakh crore, compared with 99.6 per cent for the same period a year before. Meanwhile, the Finance Ministry expects GDP growth rate to notch up to 8 percent in the current financial year. Besides, appreciation in Indian rupee against dollar too supported sentiments. The rupee rose 6 paise to 67.20 against the US dollar in early trade today as a host of economic indicators suggested the domestic economy is on a firm footing. However, foreign portfolio investors (FPIs) sold shares worth a net Rs 114.52 crore on May 31, 2016, as per provisional data released by the stock exchanges.

In the scrip specific development, Axis Bank was trading higher by 3 per cent, at its highest level since October 26, 2015 on the BSE, after the Reserve Bank of India (RBI) allowed the bank to raise foreign shareholding limit to 62% from the earlier limit of 49%. 

On the global front, US markets ended mostly lower as investors weighed the prospect of a Federal Reserve interest rate rise. Asian markets were trading mostly in green despite weak cues overnight from Wall Street.

Back home, on the sectoral front, traders were seen piling up position in FMCG, TECK, IT, Consumer Durables and Oil & Gas, while selling was witnessed in Metal, Realty, Power, Banking and Capital Goods. The market breadth on BSE was positive in the ratio of 1092: 518 while 65 scrips remained unchanged.

The BSE Sensex is currently trading at 26784.43, up by 116.47 points or 0.44% after trading in a range of 26671.86 and 26784.64. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index gained 0.46%.

The top gaining sectoral indices on the BSE were FMCG up by 1.17%, TECK up by 0.72%, IT up by 0.65%, Consumer Durables up by 0.46% and Oil & Gas up by 0.44%, while Metal down by 0.34%, Realty down by 0.15%, Power down by 0.11%, Bankex down by 0.10% and Capital Goods down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 3.06%, Asian Paints up by 1.87%, ITC up by 1.76%, Axis Bank up by 1.61% and TCS up by 1.26%. On the flip side, NTPC down by 0.73%, HDFC down by 0.52%, ICICI Bank down by 0.49%, Coal India down by 0.46% and HDFC Bank down by 0.45% were the top losers.

Meanwhile, India became the fastest growing nation in the world for the January-March quarter, as the nation’s gross domestic product (GDP) grew 7.9 per cent in the fourth quarter, against a projected 7.7 per cent. The robust fourth quarter growth led to GDP posting 7.6 per cent growth in 2015-16, up from 7.2 per cent a year ago. Though, the annual growth rate remained the same, quarterly economic expansion changed in 2015-16 compared to earlier estimates.

As per the data released by the Central Statistics Office (CSO), real GDP or GDP at constant (2011-12) prices for the year 2015-16 is now estimated at Rs 113.50 lakh crore (Rs 113.51 lakh crore estimated earlier on 8th February, 2016), showing a growth rate of 7.6 percent (similar to 7.6 percent estimated earlier) over the First Revised Estimates of GDP for the year 2014-15 of Rs 105.52 lakh crore, released on 29th January 2016.

Real GVA, i.e, GVA at basic constant (2011-12) prices for the year 2015-16 is now estimated at Rs 104.27 lakh crore (as against Rs 104.38 lakh crore estimated earlier on 8th February, 2016), showing a growth rate of 7.2 percent (as against 7.3 percent estimated earlier over the First Revised Estimates of GVA for the year 2014-15 of  Rs 97.27 lakh crore, released on 29th January 2016.

The sectors which registered growth rate of over 7.0 percent were financial, real estate and professional services, posting growth of 10.3 percent, manufacturing 9.3 percent, trade, hotels, transport, communication and services related to broadcasting growing by 9.0 percent, and mining and quarrying showing growth of 7.4 percent. The growth in the agriculture, forestry and fishing, construction, electricity, gas, water supply & other utility services, public administration, defence and other services was estimated to be 1.2 per cent, 3.9 per cent, 6.6 per cent and 6.6 percent respectively.

The GDP grew 7.5 per cent in the first quarter of 2015-16, against 7.6 per cent projected in advance estimates; 7.6 per cent in the second quarter, against a projected 7.7 per cent; 7.2 per cent in the third quarter, against a projected 7.3 per cent; and 7.9 per cent in the fourth quarter, against a projected 7.7 per cent. Nominal GDP growth climbed to 10.4 per cent in the fourth quarter, from 9.1 per cent in the third quarter, pointing to inflationary pressure building up. The GDP growth rate of 7.6 per cent in 2015-16 is the highest in the new series.

The CNX Nifty is currently trading at 8187.95, up by 27.85 points or 0.34% after trading in a range of 8173.75 and 8188.10. There were 34 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 3.64%, Aurobindo Pharma up by 1.54%, Asian Paints up by 1.53%, Axis Bank up by 1.48% and Bharti Infratel up by 1.43%. On the flip side, Tata Motors down by 1.27%, Tata Motors - DVR down by 0.87%, Hindalco down by 0.86%, Yes Bank down by 0.78% and Kotak Mahindra Bank down by 0.62% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 0.07 points or 0% to 1,626.07, KOSPI Index increased 0.23 points or 0.01% to 1,983.63, Shanghai Composite increased 2.16 points or 0.07% to 2,918.78, Jakarta Composite increased 42.57 points or 0.89% to 4,839.43 and Taiwan Weighted increased 54.54 points or 0.64% to 8,590.13.

On the flip side, Nikkei 225 decreased 97.38 points or 0.57% to 17,137.60 and Hang Seng decreased 16.19 points or 0.08% to 20,798.90.