Markets continue to trade in green despite paring some gains

Indian equity benchmarks though have pared some gains but continue to trade in green in early noon session on account of buying by funds and retail investors amid firm cues from the Asian markets. Sentiment was upbeat with investors and foreign funds building up long positions, driven by a series of positive factors such as forecast of a normal to excess rainfall this monsoon, robust GDP numbers and encouraging earnings. Some support came in with Finance Minister Arun Jaitley’s statement that the Indian economy will more than double to $5 trillion in a ‘matter of few years’ as the government steps on its reforms agenda to accelerate growth. Further, investors’ were also getting encouragement with global rating agency Fitch’s report that prospects of a better monsoon, new product launches and salary hike to government employees as per the 7th Pay Commission will also provide a one-time demand boost to all automobile segments in the country.

On the global front, Asian markets were trading higher, as investors looked to US employment data that could add to or detract from the case for a Federal Reserve interest rate hike this month or in July. Meanwhile, rating agency S&P stated that market may react positively to fed rate hike if it happens, then market can digest 2- 3 rate hikes this year. Report also add, Period of turbulence seen in the market due to Chinese policy maker. Back home, in scrip specific development, share of Navkar Corporation was trading higher after the company’s arm Navkar Terminals has received a contract from Kribhco Infrastructure (KRIL).

The BSE Sensex is currently trading at 26923.61, up by 80.47 points or 0.30% after trading in a range of 26894.89 and 27008.14. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were Bankex up by 1.05%, Auto up by 0.95%, Oil & Gas up by 0.81%, Metal up by 0.65% and Realty up by 0.58%, while Consumer Durables down by 0.77%, Capital Goods down by 0.30% and TECK down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.24%, Bajaj Auto up by 1.87%, Hero MotoCorp up by 1.86%, ICICI Bank up by 1.76% and Hindustan Unilever up by 1.69%. On the flip side, Bharti Airtel down by 1.48%, Lupin down by 1.27%, GAIL India down by 0.91%, TCS down by 0.89% and ITC down by 0.75% were the top losers.

Meanwhile, Finance Minister Arun Jaitley who is on a six day visit to Japan, has once again stated that India will attempt to keep the proposed Goods & Services Tax (GST) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament

Jaitley told Japanese investors at a Make in India seminar organised by the Department of Industrial Policy & Promotion and the Confederation of Indian Industry that 'At what rate the GST Council will start it, I don't know...there have been recommendations which have been made by expert committees, including the one that the ministry of finance had set up. I'm sure we will try to keep rates as moderate as possible.”

He said that he intended to bring the Constitution amendment bill for GST for consideration of the Upper House in the monsoon session of Parliament, which starts next month. He further added that “he is reasonably hopeful of this being passed. The numbers are overwhelmingly in favour of GST...After the Constitution amendment is approved, there are three legislations that are required to be passed, two by the Central government and one by state assemblies.”

Finance Minister reacting to the upbeat GDP numbers also said that the government will push ahead with its reform agenda to retain the fastest growing large economy tag and help India move towards becoming “a more developed economy”. He added that India will maintain this paramount position of fastest growing economy in the world. And if we did that we can present ourself as a society which evolves from an emerging economy and moves towards a more developed economy.

The CNX Nifty is currently trading at 8242.85, up by 23.90 points or 0.29% after trading in a range of 8232.45 and 8262.00. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.19%, BPCL up by 2.53%, Tata Power up by 2.35%, Tata Motors - DVR up by 2.25% and ICICI Bank up by 1.89%. On the flip side, Idea Cellular down by 10.71%, Bharti Airtel down by 1.68%, Lupin down by 1.40%, Hindalco down by 1.23% and TCS down by 1.07% were the top losers.

Asian markets were trading higher; KOSPI Index increased 0.73 points or 0.04% to 1,985.84, FTSE Bursa Malaysia KLCI increased 4.96 points or 0.3% to 1,635.49, Jakarta Composite increased 10.56 points or 0.22% to 4,843.79, Shanghai Composite increased 10.74 points or 0.37% to 2,935.97, Taiwan Weighted increased 31.34 points or 0.37% to 8,587.36, Nikkei 225 increased 65.93 points or 0.4% to 16,628.48 and Hang Seng increased 100.93 points or 0.48% to 20,960.15.