Sensex, Nifty trade with good gains in afternoon trade

Indian equity markets continued to trade with good gains in afternoon trade, mainly due to sustained buying by investors and domestic financial institutions. Sentiments remained buoyant as economic think-tank NCAER revised up its projection for the country’s economic growth to 7.6 per cent for the current fiscal, compared with the earlier prediction of 7.3 per cent on forecast of normal monsoon. In its quarterly review of the economy, NCAER said prospects for the agricultural sector in 2017-18 remain optimistic on forecast of good rains.  Further, positive trade in other Asian markets too helped lift sentiments.  However, there was some cautiousness too with markets regulator SEBI tightening P-Note norms by levying a fee of $1,000 on each instrument and barring their issuance for speculative purposes to check any misuse for channelising black money. In scrip specific development, Alembic Pharmaceuticals was trading in green after receiving approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Amantadine Hydrochloride Capsules, USP, 100mg. 

On the global front, Asian markets were trading mostly in green, picking up some momentum on prospects of a weaker dollar as the Fed debates the pace of US economic growth and inflation. Back home, the BSE Sensex is currently trading at 31491.62, up by 207.98 points or 0.66% after trading in a range of 31336.96 and 31522.87. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.48%, while Small cap index up by 0.66%.

The top gaining sectoral indices on the BSE were IT up by 1.06%, TECK up by 1.00%, Bankex up by 0.75%, Telecom up by 0.72% and Consumer Disc up by 0.65%, while Oil & Gas down by 0.65%, PSU down by 0.13% and FMCG down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.10%, Sun Pharma up by 1.97%, HDFC up by 1.65%, Reliance Industries up by 1.40% and SBI up by 1.38%. On the flip side, Lupin down by 2.21%, Hindustan Unilever down by 1.88%, ONGC down by 1.54%, Coal India down by 0.78% and Dr. Reddys Lab down by 0.57% were the top losers.

Meanwhile, with forecast of normal monsoon, economic think-tank, the National Council of Applied Economic Research (NCAER) in its latest ‘quarterly review of the economy’ has revised upward the gross domestic product (GDP) growth for the current financial year to 7.6 per cent from 7.3 per cent projected earlier. NCAER also scaled up the country's gross value added (GVA) growth from 7 per cent to 7.3 per cent for the year.

The think tank further projected wholesale price index-based (WPI) inflation at 6.7 per cent for the current fiscal year and kept optimistic prospects for the agricultural sector in 2017-18, owing to normal monsoon forecast. It added that the level of water storage in the country's main reservoirs in 2017-18 is better compared to last year, in fact better than the average storage over the last ten years. NCAER though stated that while there is ample liquidity in the system and bank lending rates have come down post- demonetisation, bank credit is yet to pick up, as it is being weighed down largely by an excess amount of gross non- performing assets on balance sheets.

India’s GDP stood at 7.1 per cent for the fiscal year 2016-17, as compared to 8 per cent in the previous year, while for the Jan-Mar quarter it stood at 6.1 per cent against 7 per cent in the previous quarter of FY17. Gross value added (GVA) for FY17 stood at 6.6 per cent over 7.9 per cent in the previous year, while for the fourth quarter it stood at 5.6 per cent against 6.7 per cent in the previous quarter.

The CNX Nifty is currently trading at 9693.50, up by 59.90 points or 0.62% after trading in a range of 9642.35 and 9698.85. There were 38 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.32%, Infosys up by 2.30%, Sun Pharma up by 1.91%, Ambuja Cement up by 1.81% and Aurobindo Pharma up by 1.70%. On the flip side, Lupin down by 2.21%, GAIL India down by 2.20%, Hindustan Unilever down by 1.92%, BPCL down by 1.75% and ONGC down by 1.37% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.17 points or 0.07% to 1,776.74, KOSPI Index rose 12.84 points or 0.54% to 2,370.37, Shanghai Composite surged 16.95 points or 0.54% to 3,173.16, Taiwan Weighted was up by 49.34 points or 0.48% to 10,399.06 and Hang Seng added 89.77 points or 0.35% to 25,784.35.

On the flip side, Nikkei 225 decreased 28.28 points or 0.14% to 20,110.51 and Jakarta Composite was down by 6.96 points or 0.12% to 5,811.59.