Indian markets join the global rally with a huge gap-up start

Indian markets have made a strong start of the new week taking cues from the good going in the global markets, after US reported a better than expected jobs data that reinforced the hopes that the world’s biggest economy is not losing momentum. All the Asian peers too were surging high, giving positive milieu to the markets. Traders apart from positive global cues were also getting good support with NITI Aayog Vice Chairman Arvind Panagariya’s statement that the government has put the economy on the path of reform to achieve a high growth trajectory. He said Today, the economy is far healthier compared to the last year of UPA II in all macroeconomic parameters,” he said, adding that the current government ended the paralysis by clearing numerous projects.

Both the major indices are up by around a percent and half, and the Nifty was retaining its gains above the crucial level of 8400, while the Sensex has crossed the 27500 mark. Not only bluchips but the broader markets too were trading with good gains and the BSE midcap and small cap indices both were up by over a percent each. Traders are now eyeing the earnings season for the first quarter, starting with IndusInd Bank announcing its numbers later in the day.

All the sectoral indices were trading in green, led by realty, power and banks, in non sectoral gauges the chemical stocks were trading higher after the, Revenue Department has slapped anti-dumping duty of up to $168.76 per tonne on import of a chemical used in textile industry from five countries China, Iran, Indonesia, Malaysia and Taiwan. Meghmani Organics was up by around 8%, BASF was up by over 2%, Solar India and Clariant Chemicals were up by around a percent.

The BSE Sensex is currently trading at 27570.65, up by 443.75 points or 1.64% after trading in a range of 27358.23 and 27591.95. All the 30 stocks were advancing on the index.

The broader indices too were trading in green; the BSE Mid cap index was up by 1.10%, while Small cap index up by 1.07%.

The top gaining sectoral indices on the BSE were Realty up by 2.00%, Power up by 1.96%, Bankex up by 1.85%, Capital Goods up by 1.66% and PSU up by 1.64%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were ICICI Bank up by 3.48%, NTPC up by 2.87%, Adani Ports &SEZ up by 2.61%, Tata Motors up by 2.60% and Power Grid Corpn. up by 2.52%

Meanwhile, with Britain deciding to exit from the European Union (EU), the Indian industry body Confederation of Indian Industry (CII), which led its annual delegation to London this week to take stock of ‘The Future of UK-India Economic Relations’ has said that Brexit opened up the possibility of new opportunities as a Free Trade Agreement (FTA) between India and the UK could be easier to accomplish at a bilateral level. CII said that there was “political drive and willingness” on both the sides and the Brexit will be the best era for Indian industries to collaborate.

The industry body pointed that India had been negotiating a Free Trade Agreement with the EU for over nine years, but was stuck due to various issues. Now these issues will instantly go away between India and the UK and the agreement would be beneficial for both the sides. CII said that “India-UK relations will sustain with or without Britain’s relationship with the EU and will only thrive and prosper in the years ahead.”

CII further said that the both countries share a number of complementarities and there are lower sensitivities, entering into an FTA with Britain will now be faster than with the entire bloc. Sectors such as automobile will not be sensitive in an FTA with the UK as the UK is not into manufacturing of too many small cars. Similarly, products such as textile from India could gain easier access to the UK. Besides, there is lot of export opportunities for Indian companies in sectors including garments and textiles in Britain.

The CNX Nifty is currently trading at 8448.50, up by 125.30 points or 1.51% after trading in a range of 8407.05 and 8455.85. There were 51 stocks advancing, while no stock was declining on the index.

The top gainers on Nifty were ICICI Bank up by 3.33%, Power Grid Corpn. up by 2.86%, NTPC up by 2.80%, Adani Ports &SEZ up by 2.54% and Bank Of Baroda up by 2.39%.

All the Asian markets were trading in green, FTSE Bursa Malaysia KLCI gained 9.2 points or 0.56% to 1,653.74, KOSPI Index was up by 22.87 points or 1.16% to 1,985.97, Shanghai Composite was higher by 27.17 points or 0.91% to 3,015.27, Jakarta Composite was up by 89.75 points or 1.81% to 5,061.33, Taiwan Weighted added 135.89 points or 1.57% to 8,776.80, Hang Seng was higher by 338.2 points or 1.64% to 20,902.37 and Nikkei 225 surged by 546.21 points or 3.62% to 15,653.19.