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. Sentiments got some support with an US think tank report stating that India will be the world’s fastest growing economy during the next five years as China’s economy cools and growth elsewhere sputters, but internal tensions over inequality and religion will complicate its expansion. Besides, better-than-expected earnings by some companies also fuelled the positive sentiment. Global cues showed firming trend at other Asian bourses, tracking overnight gains on the US markets after President Donald Trump promised to release a much-anticipated plan for tax cuts soon, boosted trading momentum here. However, upside remained capped as Finance Minister Arun Jaitley warned that economies will become more inefficient and GDP will shrink if protectionist trend emerges in developed economies. In scrip specific development, Lypsa Gems & Jewellery was trading in green with its arm receiving a prestigious new order worth Rs 155 million from customers based out of UAE, for the supply of diamonds and diamond-studded jewellery.

Asian markets were trading in green, following US President Donald Trump's tax reform comments and positive Chinese data. China reported an increase in both exports and imports in January. While exports saw a 7.9% year-on-year increase, imports showed a 16.7% jump. Both were higher than expectations and helped improve investors' confidence in the world's second largest economy.

The BSE Sensex is currently trading at 28369.73, up by 40.03 points or 0.14% after trading in a range of 28319.47 and 28456.18. 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 0.01%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were IT up by 0.77%, Bankex up by 0.65%, TECK up by 0.57%, Consumer Durables up by 0.55% and Capital Goods up by 0.50%, while Oil & Gas down by 0.51%, FMCG down by 0.23%, Metal down by 0.21% and Realty down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 2.30%, SBI up by 1.69%, Axis Bank up by 1.04%, NTPC up by 1.04% and TCS up by 1.02%. On the flip side, Lupin down by 1.15%, ITC down by 1.03%, GAIL India down by 0.86%, Cipla down by 0.74% and ICICI Bank down by 0.63% were the top losers.

Meanwhile, Economic Affairs Secretary Shaktikanta Das has said that the new bill relating to resolution of mechanism in relation to stressed assets of financial firms is ready and is likely to be introduced in Parliament soon. He also said that the Insolvency and Bankruptcy law that has been enacted deals with the corporate sector, LLPs and partnership firms, there is another world of financial firms like the banks, the mutual funds or the non-banking finance companies.

Das stated that as far as the financial sector entities are concerned, the Finance Minister Arun Jaitley has announced that the government will be introducing a Bill for resolution of financial firms and for which they have undertaken very extensive consultation the bill is ready, and it is ready to be introduced in Parliament. Outlining the focus of the Budget 2017-18, he said that one of objectives it’s was strong fiscal focus. He also said that ‘finding that right balance is very important. You find that right balance by targeting those sectors of the economy where you need to spend more and you target a certain level of debt to GDP ratio, that is the Government of India's borrowing or state's borrowing should be this much by this year.'

Economic Affairs Secretary further said that the FRBM committee chaired by former revenue secretary N K Singh has suggested that the fiscal deficit of both the centre and states put together should be 60 per cent in the financial year 2023. He said although the committee had suggested 3 per cent fiscal deficit for the next three years, the government decided to adopt 3.2 per cent and it is very much within the agenda of fiscal prudence because with 3.2 per cent the government will be able to reach 60 per cent debt to GDP ratio of the general government by 2023.

The CNX Nifty is currently trading at 8799.75, up by 21.35 points or 0.24% after trading in a range of 8781.35 and 8822.10. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.20%, Bank of Baroda up by 2.72%, Tech Mahindra up by 2.37%, Adani Ports &SEZ up by 2.23% and SBI up by 1.74%. On the flip side, Aurobindo Pharma down by 3.28%, Zee Entertainment down by 1.60%, BPCL down by 1.32%, ITC down by 1.17% and Tata Motors - DVR down by 1.13% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 9.2 points or 0.45% to 2,075.08, FTSE Bursa Malaysia KLCI rose 12.21 points or 0.72% to 1,700.71, Shanghai Composite gained 16.33 points or 0.51% to 3,199.51, Jakarta Composite soared 20.69 points or 0.39% to 5,392.77, Taiwan Weighted surged 75.41 points or 0.79% to 9,665.59, Hang Seng increased 149.61 points or 0.64% to 23,674.75 and Nikkei 225 was up by 471.26 points or 2.49% to 19,378.93.