Markets extend gains; Nifty above 8550 mark

Indian bourses extended early gains in late afternoon session as most of the sectoral indices rose amid higher opening in European counter parts. The Sensex rose by more than 189 points to trade above 27,500 mark, while the Nifty 50 reclaimed its crucial 8,550 level. The broader indices, BSE Mid cap and Small cap also traded with more than half a percent gains. Sentiments remained optimistic with report that Donald Trump and Narendra Modi have discussed opportunities to strengthen the partnership between the United States and India in broad areas such as the economy and defense. Some support also came with report that Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 93.95 crore, while Domestic Institutional Investors (DIIs) also bought shares worth a net Rs 533.49 crore, on January 24, 2017.

On the global front, European markets were trading in green as Santander's fourth-quarter profit beat estimates and investors resumed bets that Donald Trump's polices will help fuel economic growth in the United States over the next two years. Asian markets were trading in green. Back home, in scrip specific development, Indian Bank jumped after it reported around eight-fold jump in its net profit at Rs 373.48 crore for the quarter ended December 31, 2016, as compared to Rs 48.48 crore for the quarter ended December 31, 2015.

The BSE Sensex is currently trading at 27564.72, up by 189.14 points or 0.69% after trading in a range of 27439.68 and 27590.59. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.64%, while Small cap index was up by 0.72%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.61%, Bankex up by 1.45%, Realty up by 1.41%, Capital Goods up by 1.10% and Oil & Gas up by 0.93%, while TECK down by 0.01% and IT down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were HDFC up by 3.37%, Adani Ports & Special economic zone up by 2.71%, Axis Bank up by 2.43%, Tata Steel up by 1.67% and Larsen & Toubro up by 1.45%. On the flip side, Bharti Airtel down by 2.70%, Wipro down by 1.28%, Reliance Industries down by 0.70%, Infosys down by 0.55% and NTPC down by 0.32% were the top losers.

Meanwhile, a committee on digital payments formed to promote digitalization and chaired by Chief Minister Chandrababu Naidu in its interim report submitted to Prime Minister Narendra Modi at Niti Ayog has made various suggestions. The panel has recommended eliminating the Merchant Discount Rate charges (MDR) to make digital payments cheaper than cash. Panel has suggested banking cash transaction tax on transaction of Rs 50,000 and above. Further it suggested bringing all government insurance, educational institutes, fertilisers, PDS and petroleum sectors within the ambit of digital payments. 

To boost digital payments, panel has suggested to provide Aadhaar-enabled micro ATM infrastructure for 1.54 lakh post offices and 50 per cent subsidy on Aadhaar Pay, Biometric (FP & Iris) sensors should be given to all merchant points. Further panel has said that all payment banks and banking correspondents should be made interoperable through AEPS.

Naidu said that there are lots of cost of handling physical currency because of its printing, movement and security while there is no such cost for digital currency and said that with the increase of volume of digital transitions. The panel made a case for relief in prospective taxes for encouraging merchants to accept digital payments and no retrospective taxation to Merchants doing digital transactions.

The CNX Nifty is currently trading at 8551.95, up by 76.15 points or 0.90% after trading in a range of 8493.95 and 8557.00. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 5.47%, Zee Entertainment up by 4.11%, Bosch up by 4.03%, HDFC up by 3.41% and Yes Bank up by 2.88%. On the flip side, Bharti Airtel down by 2.59%, Wipro down by 1.41%, Tech Mahindra down by 0.78%, GAIL India down by 0.74% and Reliance Industries down by 0.71% were the top losers.

All Asian markets were trading in green; KOSPI Index increased 1.18 points or 0.06% to 2,066.94, FTSE Bursa Malaysia KLCI increased 2.08 points or 0.12% to 1,682.77, Shanghai Composite increased 7 points or 0.22% to 3,149.55, Jakarta Composite increased 10.04 points or 0.19% to 5,302.13, Hang Seng increased 99.26 points or 0.43% to 23,049.12 and Nikkei 225 increased 269.51 points or 1.43% to 19,057.50. Taiwan Stock Exchange was closed on account of ‘Non Trading Day’.

All European markets were trading in green; France’s CAC increased 31.32 points or 0.65% to 4,861.35, UK’s FTSE 100 increased 33.5 points or 0.47% to 7,183.84 and Germany’s DAX increased 83.7 points or 0.72% to 11,678.64.