Indian markets extend early gains; trade at intra-day high levels

Indian equity indices extended early gains to continue firm trade in noon session, hovering near intra-day high, on continued buying activities by both funds and retail investors amid firm global cues. Sentiments got a boost with Finance Minister Arun Jaitley’s statement that Indian economy will grow at a clip of 7.5% this fiscal, up from 7.1% in the previous year, and it remains resilient with low inflation, fiscal prudence and low deficit. Participating in G-20 finance ministers' and central bank governors' meeting, he said emerging economies have become increasingly important in driving global growth, accounting for more than 75% of global expansion. Some support also came after Niti Aayog, the government's premier think-tank indicated that India will be a Rs 469 lakh crore, or $7.2 trillion, economy by 2030. According to the report, the future is extremely bright for India's economic growth, primarily because of an extremely large GDP base and a projection of average 8% growth over the next 15 years.  Furthermore, Prime Minister Narendra Modi called upon states to ‘speed up capital expenditure and infrastructure creation’ to spur economic growth. He further said the vision of 'New India' can only be realised through the combined efforts and cooperation of all the states. Meanwhile, Fourth quarter earnings of Reliance Industries also kept the investors cheeery at the start of a week that may see choppiness ahead of the expiry of April series futures and options contracts.            

On the global front, Asian markets were trading mostly higher on Monday as investors turned optimistic after the market's favored candidate won through the first round of the French election, reducing the risk of a Brexit-like shock and sparking a mass unwinding of safe-haven trades.  Japanese shares were leading regional gains on a weaker yen, while Chinese shares led losses on concerns over increased regulatory scrutiny and a crackdown on leveraged trading. Further, oil prices recovered some lost ground in a relief rally amid expectations that OPEC will extend a pledge to cut output beyond June. Overnight, US stocks ended lower on Friday ahead of the first round of the closely contested French presidential election

Back home, stocks from Realty, Basic Materials and Capital Goods counters were supporting the markets’ uptrend, while those from Healthcare, Telecom and FMCG counters were adding to the underlying cautious undertone. In scrip specific development, White Organic Agro surged after the company received license from Joint Commissioner, Food and Medical Controls Department for production of Medicinal and Nutritional Products at its Manufacturing Unit. Meanwhile, Wipro, TCS and Infosys were trading in red after US accused them of unfairly cornering the lion's share of H-1B visas by putting extra tickets in the lottery system, which the Donald Trump administration wants to replace with a more merit-based immigration policy.

The market breadth remained optimistic, as there were 1554 shares on the gaining side against 1017 shares on the losing side, while 144 shares remained unchanged.

The BSE Sensex is currently trading at 29518.77, up by 153.47 points or 0.52% after trading in a range of 29392.99 and 29526.94. 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 0.47%, while Small cap index gained 0.81%.

The top gaining sectoral indices on the BSE were Realty up by 3.16%, Basic Materials up by 1.66%, Capital Goods up by 1.31%, Industrials up by 1.10% and Auto up by 0.62%, while Healthcare down by 0.60%, Telecom down by 0.48%, FMCG down by 0.28%, TECK down by 0.14% and Consumer Durables down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 2.42%, Larsen & Toubro up by 1.98%, Adani Ports &Special up by 1.93%, GAIL India up by 1.84% and HDFC up by 1.58%. On the flip side, Lupin down by 3.25%, Cipla down by 1.49%, ICICI Bank down by 1.30%, Wipro down by 0.61% and Power Grid down by 0.61% were the top losers.

Meanwhile, in order to provide a faster exit mechanism for certain class of entities under the Insolvency and Bankruptcy Code, the government is planning to put in place a fast-track resolution process, whose draft norms have recently been issued by the Insolvency and Bankruptcy Board of India (IBBI) and comments on the same draft- named as ‘the draft IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017’ have been sought from the public till May 8.

The proposed draft which was prepared by a working group constituted by the ministry will focus on three classes of entities- startups, small companies and companies or Limited Liability Partnerships (LLPs). As per it, a company or LLP which has not borrowed more than Rs 2 crore in any manner will be eligible for the process fast-track. Besides, small companies will be those fulfilling the criteria as laid down in the Companies Act, 2013, while startups are defined by the Department of Industrial Policy and Promotion (DIPP).

The draft norms do not spell out the timeframe for a fast-track process under the Code but it is expected to be 90 days. However, the Code provides for completing insolvency resolution process within 180 days and the timeframe starts from the insolvency commencement date and it also seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.

The CNX Nifty is currently trading at 9170.65, up by 51.25 points or 0.56% after trading in a range of 9130.55 and 9174.95. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were ACC up by 6.10%, Grasim Industries up by 3.93%, Ultratech Cement up by 3.25%, Ambuja Cement up by 2.63% and HDFC Bank up by 2.49%. On the flip side, Lupin down by 3.11%, Cipla down by 1.69%, ICICI Bank down by 1.37%, IOC down by 1.05% and ZEEL down by 0.91% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 0.23%, Taiwan Weighted edged higher 0.02%, KOSPI Index gained 0.3%, Jakarta Composite surged 1.24% and Nikkei 225 was up by 1.49%. On the flip side, Shanghai Composite declined 1.43%.