Indian benchmarks add gains; trade near intra-day high level

Indian benchmark indices extended their early gains, continuing their firm trade in noon session, hovering near the intra-day high level of the day, on sustained buying activities by both funds and retail investors in frontline blue-chip stocks. Positive cues from the global front are helping the market to move further, as Asian markets are trading mostly in the green and the US index futures are also showing an up-tick in screen trade after US Fed minutes suggested a less hawkish stance from policymakers. Sentiments remained optimistic with the private report indicating that the government is expected to meet the fiscal deficit target of 3.5% of GDP in the current financial year, despite recent demonetisation move and potential delay in roll out of the Goods and Services Tax (GST). Fiscal deficit has been pegged at Rs 5.33 lakh crore, or 3.5% of GDP, in 2016-17. Besides, appreciation in rupee value against the dollar added to the optimistic sentiments.  Indian rupee firmed up 16 paise to 67.89 against the dollar on Thursday after the US currency saw higher selling by exporters and banks. Some support also came with Finance Minister Arun Jaitley expressing confidence that direct and indirect tax mop-up will surpass Budget estimate of Rs 16.3 lakh crore by March-end. Jaitley had in his Budget for 2016-17 fiscal put gross tax revenue estimates at Rs 16.3 lakh crore, about 11 percent higher than gross tax receipts of Rs 14.5 lakh crore for the previous fiscal. Indirect tax collections till November had shown a 26.2 percent jump to Rs 5.52 lakh crore when compared with a year ago collections.

On the global front, Asian markets were trading mostly higher on Thursday, buoyed by further gains on Wall Street and an overnight bounce in oil prices that bolstered energy shares. Also underpinning the cautious streak of optimism has been a steady stream of upbeat factory and service sector surveys out of the US, Europe and Asia this week, prompting some banks to raise their global growth forecasts for 2017. Investors also digested minutes from the Federal Reserve's December meeting released overnight, which indicated that the Fed's decision to raise interest rates by a quarter point was partly due to an assumption of more expansionary fiscal policy under President-elect Donald Trump.

Back home, all BSE sectoral indices were trading in the green, among them, Metal index gained the most by 2.05 percent, followed by Oil & Gas 1.5 percent, PSU 1.23 percent and Auto 1.13 per cent. In scrip specific development, Gravita India rose after the company commenced commercial production of Lead Metal from its new Recycling plant situated at Chittoor, Andhra Pradesh. On the other hand, Mahindra & Mahindra declined after the company reported 20.86% fall in its production to 32355 units in December 2016 as compared to 40885 units in same month last year. The market breadth remained optimistic as there were 1786 shares on the gaining side against 631 shares on the losing side, while 114 shares remained unchanged.

The BSE Sensex is currently trading at 26852.25, up by 219.12 points or 0.82% after trading in a range of 26738.42 and 26862.85. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.98%, while Small cap index gained 0.92%.

The top gaining sectoral indices on the BSE were Metal up by 2.05%, Oil & Gas up by 1.50%, PSU up by 1.23%, Auto up by 1.13% and Bankex up by 0.94%, while there were no losers on BSE sectoral front.

The top gainers on the Sensex were Tata Motors up by 2.89%, Adani Ports & SEZ up by 2.68%, ONGC up by 2.39%, Tata Steel up by 2.36% and Wipro up by 1.87%. On the flip side, Mahindra & Mahindra down by 1.05% and TCS down by 0.01% were the top losers.

Meanwhile,  Expenditure Finance Commission (EFC) under Finance Ministry has cleared 29 Investment proposals or schemes of various Ministries including expenditure amounting Rs 2,11,049 crore during calender year 2016. Also, during the period, Public Investment Board (PIB) chaired by Expenditure Secretary has cleared 12 proposals including expenditure of Rs 28,673 crore.

Department of Expenditure (DOE) under Ministry of Finance in its year-end review for 2016 has said that the EFC chaired by Expenditure Secretary recommended 29 investment proposals of various ministries and departments costing Rs 2,11,049 crore, during the period from January 1 to November 30, 2016. It also noted that out of these proposals, 3 proposals of Ministry of Power amounting Rs 8,612 crore were cleared by the board during year 2016. It also said that proposals of Ministry of External Affairs and Ministry of Road, Transport and Highway involving investment of Rs 7,291 crore and Rs 6,461 crore, respectively, were also cleared. 

Commenting on the Public Financial Management System (PFMS), it said that this web-based online software application has been fully implemented at the central government level for all plan and non-plan scheme releases. It also said that so far around 18 lakh implementing agencies are registered on PFMS and the total number of beneficiaries bank accounts registered in PFMS is 19.07crore till November 30, 2016. It added that PFMS treasury integration is currently operational in 12 states and integration process has been initiated in other states also. It is expected to be completed by March 31, 2017.

DOE has further said that during the year, the Controller General of Accounts (CGA) has developed a risk based control framework in the form of Generic Internal Audit Manual to guide the internal audit engagements. The manual not only explain the complexities associated with the internal audit functions but also facilitates the entire process by providing audit process, templates and guidelines. Highlighting the other achievements, DOE said that the Centralized Public Grievances Redressal and Monitoring System (CPGRAMS) has been effectively implemented and a total number of 4,475 out of 4,508 grievances have been successfully redressed/disposed off so far.

The CNX Nifty is currently trading at 8258.25, up by 67.75 points or 0.83% after trading in a range of 8223.70 and 8262.10. There were 46 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.83%, Adani Ports & SEZ up by 2.53%, Yes Bank up by 2.35%, Tata Steel up by 2.27% and ONGC up by 2.21%. On the flip side, Bharti Infratel down by 1.99%, Mahindra & Mahindra down by 0.98%, Tech Mahindra down by 0.54%, Ambuja Cement down by 0.12% and TCS down by 0.11% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite 0.02%, FTSE Bursa Malaysia KLCI gained 0.4%, Jakarta Composite rose 0.37%, Taiwan Weighted added 0.77% and Hang Seng was up by 1.48%. On the flip side, Nikkei 225 decreased 0.5% and KOSPI Index was down by 0.07%.