Benchmarks extend early gains; trade at intra-day high levels

Indian benchmark indices extended their early gains and continued to trade firm in noon session, hovering near the intra-day high levels of the day, amid optimism over Indian Meteorological Department’s prediction of a ‘normal’ monsoon this calendar and a positive trend in global markets. IMD said that the prospects of the monsoon have brightened due to reduced chances of El-Nino. Some support also came with the report that Prime Minister Narendra Modi is setting up a task force under the chairmanship of the Vice Chairman of NITI Aayog Dr Arvind Panagriya, with an aim to create policies on employment based on credible data. The Prime Minister has directed that this task be expedited so that policies on employment can be formulated with a proper appreciation of impacts, based on credible data.  Further, investors overlooked the RBI’s data suggesting that new financial year began on a sour note for bank credit growth, which slipped to 4.32% in the fortnight to April 28, much lower than the 63-year low level of 5.08% in FY17. In the reporting fortnight, credit grew at an anaemic 4.32% to Rs 75.45 trillion as against the Rs 72.32 trillion in the same period.

On the global front, Asian markets were trading mostly in green on Thursday, as a rebound in oil boosted energy producers. Oil prices rose on Thursday and Brent was firmly back over $50 per barrel, as a fall in US fuel inventories and a bigger-than-expected cut in Saudi supplies to Asia tightened the market. Also, the corporate earnings and positive data on the US economy have buoyed sentiments about global growth. Meanwhile, US market ended mixed on Wednesday on President Donald Trump’s abrupt dismissal of his FBI chief as well as corporate earnings from Walt Disney and Nvidia.

Back home, stocks from Realty, Consumer Disc and Metal counters were supporting the markets’ uptrend, while those from Telecom, Power and Utilities counters were adding to the underlying cautious undertone. In scrip specific development, Panasonic Carbon India Company declined after the company reported a fall of 15.69% in its net profit at Rs 2.74 crore for the quarter ended March 31, 2017 as compared to Rs 3.25 crore for the same quarter in the previous year. On the other hand, Petronet LNG surged after the company reported a rise of 91.92% in its net profit at Rs 470.79 crore for the quarter ended March 31, 2017, as compared to Rs 245.31 crore for the same quarter in the previous year.

The market breadth remained optimistic, as there were 1325 shares on the gaining side against 1158 shares on the losing side, while 152 shares remained unchanged.

The BSE Sensex is currently trading at 30354.42, up by 106.25 points or 0.35% after trading in a range of 30296.32 and 30366.43. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index up by 0.53%.

The gaining sectoral indices on the BSE were Realty up by 1.29%, Consumer Disc up by 0.95%, Metal up by 0.80%, Basic Materials up by 0.75% and Auto up by 0.73%, while Telecom down by 0.88%, Power down by 0.65%, Utilities down by 0.41% and Capital Goods down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.17%, Hero MotoCorp up by 1.82%, ITC up by 1.35%, SBI up by 1.32% and ICICI Bank up by 1.21%. On the flip side, Bharti Airtel down by 1.54%, GAIL India down by 0.96%, Dr. Reddy’s Lab down by 0.83%, Hindustan Unilever down by 0.82% and NTPC down by 0.49% were the top losers.

Meanwhile, almost six month after the announcement of demonetisation by Prime Minister Narendra Modi, the Reserve Bank of India (RBI) has refused to share details of the note ban process and said that it would be detrimental to the India’s economic interests. RBI also said that disclosing such details may impede future economic or fiscal policies of Government of India.

Replying to the RTI query, RBI said ‘The information sought in the query carries sensitive background information including opinions, data, studies/ surveys etc. made prior to the completion of the process of withdrawal of legal tender character of Rs 500 and Rs 1,000 notes. Disclosure of such information would detriment economic interest of the country from the viewpoint of the objectives sought to be achieved by such decision’. Therefore, the disclosure of information qualifies for exemption under section 8 (1) (a) of the Right to Information (RTI) Act.

The central bank also said no part of the record (sought by the applicant) can be provided as contemplated in section 10 of the transparency law. The section allows access to that part of the record which can reasonably be severed from any part that contains exempted information. The section bars sharing of information which would ‘prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the state, relation with foreign state or lead to incitement of an offence’.

The RBI was asked to provide a copy of the minutes of the meetings held in its office during which the decision to demonetise Rs 500 and Rs 1,000 notes was taken. It was also asked to share a copy of the correspondence made with the Prime Minister's Office (PMO) and the Finance Ministry on demonetisation issue.

The CNX Nifty is currently trading at 9447.75, up by 40.45 points or 0.43% after trading in a range of 9426.65 and 9450.65. There were 36 stocks advancing against 14 stocks declining on the index, while one stock remained unchanged.

The top gainers on Nifty were Zee Entertainment up by 4.18%, Hindalco up by 3.47%, Eicher Motors up by 3.11%, Bank of Baroda up by 2.40% and Hero MotoCorp up by 1.72%. On the flip side, Bharti Airtel down by 1.48%, GAIL India down by 1.08%, Hindustan Unilever down by 0.94%, Dr. Reddy’s Lab down by 0.93% and Power Grid down by 0.52% were the top losers.

Most of the Asian markets were trading in green, FTSE Bursa Malaysia KLCI rose 11.47 points or 0.65% to 1,778.03, KOSPI Index jumped 21.94 points or 0.97% to 2,292.06, Taiwan Weighted surged by 33.16 points or 0.33% to 10,001.48, Nikkei 225 increased by 72.69 points or 0.37% to 19,972.78 and Hang Seng was up by 78.44 points or 0.31% to 25,093.86.

On the other hand, Shanghai Composite was down by 19.13 points or 0.63% to 3,033.65.