Indian bourses maintain upbeat mood in afternoon deals

Indian equity indices maintained the upbeat mood in the afternoon session, supported by positive global cues along with gains in Capital Goods, IT, Industrials and TECK sector stocks. Traders took some encouragement with report that government in its bid to support the initiative ‘Make in India’ and easing the flow of foreign capital into the country, dismantled the Foreign Investment Promotion Board (FIPB). The FIPB, which was earlier vetting FDI proposals and requiring Government approvals, will now be replaced by a new mechanism under which the proposals will be approved by the concerned ministries. Besides, the strengthening rupee against the dollar and short-covering by participants with Thursday being the last trading session of the May series of derivative contracts also supported the up move. In scrip specific development, Bharat Heavy Electricals (BHEL) was up by around a percent after successfully commissioning another 270 MW thermal unit at Rattanlndia Nasik Power's 5x270 MW thermal power project, located at Sinnar in Nasik District of Maharashtra.

On the global front, Asian markets were trading mostly in green, as traders welcomed indications from the Federal Reserve that interest rates could rise next month, while oil prices rallied ahead of an expected extension to output cuts. Back home, the BSE Sensex is currently trading at 30478.98, up by 177.34 points or 0.59% after trading in a range of 30352.26 and 30503.39. 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 0.63%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.54%, IT up by 1.55%, Industrials up by 1.52%, TECK up by 1.29% and Telecom up by 1.09%, while Healthcare down by 1.57% and Consumer Durables down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.70%, GAIL India up by 2.23%, TCS up by 1.75%, ICICI Bank up by 1.73% and Infosys up by 1.71%. On the flip side, Lupin down by 6.69%, Cipla down by 2.47%, Dr. Reddys Lab down by 2.16%, Sun Pharma down by 2.08% and Power Grid down by 0.83% were the top losers.

Meanwhile, with an aim to improve the efficiency of the inland water transport sector, the Union Cabinet chaired by the Prime Minister Narendra Modi has given its nod to allocate 2.5 percent of Central Road Fund (CRF) proceeds for National Waterways (NWs) that would result in around Rs 2000 crore proceeds per annum for their development and maintenance. CRF is a duty on excise and customs imposed on petrol and high speed diesel. The cess at present is Rs 6 per litre.

The Cabinet has also directed that while implementing viable NWs projects, all such components that can be done on PPP basis, should be explored accordingly and government funding may be used only if private investment is not upcoming for any component. The Central Road Fund (Amendment) Bill, 2017 would be moved by the Ministry of Road Transport and Highways in the ensuing monsoon session of Parliament.

The Inland Waterways Authority of India (IWAI) has estimated that about Rs 25,000 crore would be required for development of identified projects on NWs till 2022-23. IWAI also planned to undertake work on the development of 24 NWs during the next three years. It is estimated that 1.8 lakh persons would be provided employment in the Inland Waterways Transport (IWT) sector in the next five years. Moreover, new employment opportunities are expected to be generated for operation and management of fairway, terminals, aids to navigation, barges, training, etc.

The CNX Nifty is currently trading at 9416.45, up by 55.90 points or 0.60% after trading in a range of 9379.20 and 9425.65. There were 36 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.73%, Tata Motors - DVR up by 2.22%, GAIL India up by 2.11%, Tech Mahindra up by 1.74% and ICICI Bank up by 1.71%. On the flip side, Lupin down by 6.80%, Cipla down by 2.30%, Sun Pharma down by 2.24%, Dr. Reddys Lab down by 2.11% and Power Grid down by 0.95% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 9.67 points or 0.55% to 1,780.68, KOSPI Index added 25.59 points or 1.1% to 2,342.93, Shanghai Composite rose 44.84 points or 1.46% to 3,108.92, Taiwan Weighted was up by 64.07 points or 0.64% to 10,108.49 and Hang Seng surged 204.64 points or 0.8% to 25,633.14.

On the flip side, Jakarta Composite was down by 27.18 points or 0.47% to 5,703.43.