Indian bourses continue to trade in positive territory

Key benchmark indices continued to trade in positive territory in the afternoon session led by gains in frontline blue chip stocks. Traders were optimistic after NITI Aayog estimating a growth rate of 8% for 2016-17 as per a ‘cautiously optimistic’ prognosis it has laid out in the appraisal document for the Twelfth Five-Year Plan, flagging the lack of reforms in land acquisition, labour and simplification of administrative procedures as impediments to growth. The review, however, does not take into account the impact of demonetization. Some support also came with Finance Minister Arun Jaitley’s statement that the Centre is still aiming to implement the Goods and Services Tax (GST) regime from April 1, 2017. He also said that most of the issues have been sorted out and hoped that some critical issues of dual control and cross-empowerment in the GST will get resolved in next few weeks. Besides, a firm trend in other Asian bourses coupled with appreciation in rupee value against the dollar too supported the domestic market sentiments. The rupee recovered by 27 paise to 68.06 against the US dollar in early trade on fresh selling of the American currency by exporters.

On the global front, Asian markets were trading mostly in green after U.S. President-elect Donald Trump largely avoided fresh attacks on global trade in his first news conference in six months. Back home, in scrip specific development, Biocon was up by over two percent after the USFDA accepted its biologics license application for its drug to treat breast cancer.

The BSE Sensex is currently trading at 27194.74, up by 54.33 points or 0.20% after trading in a range of 27166.69 and 27278.93. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.05%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Power up by 2.24%, Capital Goods up by 1.17%, IT up by 1.09%, TECK up by 0.84% and PSU up by 0.78%, while FMCG down by 0.59%, Auto down by 0.21%, Metal down by 0.18% and Consumer Durables down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 4.32%, NTPC up by 3.53%, Larsen & Toubro up by 2.07%, Infosys up by 2.06% and ONGC up by 1.70%. On the flip side, Coal India down by 1.77%, Dr. Reddys Lab down by 1.65%, Sun Pharma down by 1.60%, Lupin down by 1.11% and ITC down by 0.93% were the top losers.

Meanwhile, the Commerce Ministry has started review of the Foreign Trade Policy (FTP) in order to see whether any support and any kind of correction is required for certain sectors to further boost exports. As part of the review, it would hold stakeholders’ consultations to understand the issues faced by exporters.

Commerce and Industry Minister Nirmala Sitharaman has said that FTP is in the process of a review. She also said that when it was declared in 2015, they had said that they will go for mid-term review so that if there is any correction that has to be done, it will be done. Sitharaman said that the Commerce Ministry had requested the states to appoint export commissioners and formulate a policy. She added that the strategy behind this is that the states must have, in line with the FTP, but stressing their own states’ strengths.

In April 2015, the government unveiled its first five-year Foreign Trade Policy (FTP) which aims to double exports of goods and services to $900 billion by 2020. In the FTP (2015-20), the government replaced multiple schemes with Merchandise Exports from India Scheme and Services Exports from India Scheme.

Since December 2014, exports fell for 18 months in a row till May 2016, mainly due to weak global demand. Shipments witnessed growth only in June this year, thereafter again entered the negative zone in July and August. The outbound shipments are growing from September but the global situation is still uncertain. In April-September 2016-17, India’s total goods exports slipped by 1.74 per cent to $131.40 billion compared to the same period last fiscal.

The CNX Nifty is currently trading at 8394.50, up by 13.85 points or 0.17% after trading in a range of 8382.30 and 8417.20. There were 22 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 4.24%, NTPC up by 3.37%, Tata Power up by 2.67%, Larsen & Toubro up by 2.31% and Infosys up by 2.03%. On the flip side, Idea Cellular down by 2.75%, Aurobindo Pharma down by 1.93%, Coal India down by 1.81%, Sun Pharma down by 1.57% and Dr. Reddys Lab down by 1.49% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 4.12 points or 0.25% to 1,679.33, KOSPI Index increased 11.97 points or 0.58% to 2,087.14, Jakarta Composite increased 13.05 points or 0.25% to 5,314.29 and Taiwan Weighted increased 64.44 points or 0.69% to 9,410.18.

On the flip side, Nikkei 225 decreased 229.97 points or 1.19% to 19,134.70, Hang Seng decreased 152.77 points or 0.67% to 22,782.58 and Shanghai Composite decreased 13.27 points or 0.42% to 3,123.49.