Markets scale new peaks; Sensex crosses 31,000 mark

Indian equity benchmarks extended their bullish momentum in late afternoon session, as investors took comfort from the new June derivatives series. Sentiments remained optimistic with the report that India retained its numero uno position being the world's top most greenfield FDI investment destination for the second consecutive year, attracting $62.3 billion in 2016. A slower-than-expected hike in interest rates by the US Federal Reserve and a risk-on mode triggered after OPEC decided to extend the oil output cut to March 2018, also aided the sentiments. Some support also came with private weather forecaster Skymet’s statement that the increase in pre-monsoon showers across India is hinting at the arrival of monsoon 2017, which is not very far away. The weather forecasting agency predicted that monsoon will make an onset over Kerala by May 29, with a margin of error of three days. Furthermore, the positive sentiments prevailing amid the investors, as the corporate earnings continue to boost the Indian equities, pushing the Sensex, Nifty to record highs. Hindustan Petroleum Corporation (HPCL) reported a rise of 31.05% in its net profit at Rs 1818.79 crore for the quarter ended March 31, 2017 as compared to Rs 1387.91 crore for the same quarter in the previous year. 

On the global front, European markets were trading in red, as slumping oil prices continued to weigh on investor sentiment. Asian markets were trading in green. Back home, in scrip specific development, airline stocks like Jet Airways gained traction on expectations that a slide in oil prices would reduce carriers' fuel cost. Crude oil skidded 5% after OPEC and allied producers announced extended output cuts that disappointed investors.

The BSE Sensex is currently trading at 31007.49, up by 257.46 points or 0.84% after trading in a range of 30745.57 and 31034.30. 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 1.39%, while Small cap index was up by 1.42%.

The top gaining sectoral indices on the BSE were Metal up by 3.66%, Basic Materials up by 2.15%, Industrials up by 1.92%, Capital Goods up by 1.61% and Power up by 1.48%, while Healthcare down by 0.84% was the sole losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 5.93%, Adani Ports & SEZ up by 2.45%, Reliance Industries up by 2.29%, Asian Paints up by 2.12% and Power Grid Corporation up by 2.11%. On the flip side, Sun Pharma down by 3.66%, Cipla down by 3.23%, Lupin down by 2.02%, TCS down by 0.85% and SBI down by 0.76% were the top losers.

Meanwhile, giving a big relief to the farmers, the Reserve Bank of India (RBI) has said that farmers will continue to get short-term crop loan of up to Rs 3 lakh at subsidised interest rate of 7 per cent and the rate could go down to 4 per cent if they repay promptly in 2017-18.

Under the scheme which aims at providing short term credit to farmers at subsidised interest rate, a subvention of 2 per cent per annum is provided for short-term crop loan up to Rs 3 lakh per farmer provided the lending institutions make available short-term credit at the ground level at 7 per cent per annum to farmers. Besides, an additional interest subvention of 3 per cent per annum is available to the prompt payee farmers.

The central bank said that the Ministry of Agriculture and Farmers' Welfare initiated the process for continuation of the Interest Subvention Scheme and it has been decided by the government, as an interim measure, to implement the Interest Subvention Scheme for 2017 -18 till further instructions are received.

The CNX Nifty is currently trading at 9582.30, up by 72.55 points or 0.76% after trading in a range of 9495.40 and 9592.15. There were 36 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 6.14%, Hindalco up by 5.12%, Vedanta up by 4.62%, Adani Ports & SEZ up by 2.63% and Reliance Industries up by 2.39%. On the flip side, Indian Oil Corporation down by 4.91%, Sun Pharma down by 3.64%, Cipla down by 3.15%, Lupin down by 2.12% and Bank of Baroda down by 1.43% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 2.23 points or 0.07% to 3,110.06, Jakarta Composite increased 7.53 points or 0.13% to 5,710.97, Hang Seng increased 8.49 points or 0.03% to 25,639.27 and KOSPI Index increased 12.37 points or 0.53% to 2,355.30. On the flip side, Nikkei 225 decreased 126.29 points or 0.64% to 19,686.84, Taiwan Weighted decreased 6.54 points or 0.06% to 10,101.95 and FTSE Bursa Malaysia KLCI decreased 2.69 points or 0.15% to 1,771.27.

European markets were trading mostly in red; Germany’s DAX decreased 30.77 points or 0.24% to 12,590.95 and France’s CAC decreased 23.74 points or 0.44% to 5,313.42. On the flip side, UK’s FTSE 100 increased 13.98 points or 0.19% to 7,531.69.