Markets remain strong; Sensex surges over 150 points

Indian equity benchmarks remained strong in late afternoon session, with Sensex recording gains of over 150 points, while Nifty surpassing 9650 mark. Investors took encouragement with report that NCAER revised upward the gross domestic product (GDP) growth for the current financial year to 7.6 percent from 7.3 percent projected earlier. It also scaled up the country's gross value added (GVA) growth from 7 percent to 7.3 percent for the year. The surge also came in the backdrop of an ease in the takeover norms for the acquisition of stressed assets of listed companies, which was announced by the Securities and Exchange Board of India (SEBI) on Wednesday. Besides, the Board approved a proposal to tighten rules for participatory notes through imposition of a regulatory fee on issuers of such instruments. Shares of IT companies traded higher with industry body NASSCOM in its guidance projected that Indian IT export to grow by 7-8 percent in 2017-18. It also said that the domestic market is expected to grow 10-11 percent. Moreover, Defence Minister Arun Jaitley invited Russian firms to join hands with Indian companies in developing high-end military platforms and weapons systems.

On the global front, European markets were trading in red, as investors reacted to depressed oil prices and ongoing weakness in commodities-related sectors. Asian markets were also trading in red. Back home, in scrip specific development, PI Industries edged up after the company entered into an agreement with Kumiai Chemical Industry Co to establish a Joint Venture Company (JVC) in India. This JVC is being set up initially to manufacture and distribute Bispyribac Sodium, one of the flagship agrochemical products of Kumiai, in India to achieve operational efficiencies and further growth. 

The BSE Sensex is currently trading at 31456.66, up by 173.02 points or 0.55% after trading in a range of 31336.96 and 31522.87. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.17%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.68%, Bankex up by 0.64%, TECK up by 0.59%, Consumer Disc up by 0.58% and IT up by 0.58%, while Oil & Gas down by 1.23%, Utilities down by 0.99%, PSU down by 0.84%, Power down by 0.48% and Metal down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.89%, HDFC up by 1.65%, Reliance Industries up by 1.41%, Infosys up by 1.13% and ITC up by 1.12%. On the flip side, Power Grid Corporation down by 2.77%, Lupin down by 2.23%, Hindustan Unilever down by 2.18%, ONGC down by 1.67% and Coal India down by 1.38% were the top losers.

Meanwhile, in view of continuous growth in the country’s export, Exporters body Federation of Indian Export Organisations (FIEO) has set the export target of $325 billion this fiscal year. FIEO in a statement said that “Indian exports have been on an upward trend in last few months with export of $275 billion in last fiscal and a target of $325 billion to achieve in 2017-18”.

FIEO welcomed the introduction of the Goods and Services Tax (GST) and said that its spin off effect would benefit both the manufacturing and export sector. It said that GST is a well needed reform and the transition will require some time, and calibrated process of foreign trade policy will be continuous. FIEO president Ganesh Kumar Gupta though said that, while India showed a positive trend on exports since the last 9 months, but the business is a bit anxious regarding to the Goods and Services Tax (GST).

Commerce Secretary while interacting with the FIEO sought policy inputs and suggestions at a Mid Term Review of Foreign Trade Policy interactive session. The meeting also covered topics like SEZ electricity duty refunds, issues related to non EDI land ports and Bangladesh exports and about shipping lines overcharging.
The CNX Nifty is currently trading at 9673.80, up by 40.20 points or 0.42% after trading in a range of 9642.35 and 9698.85. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 2.41%, Yes Bank up by 2.25%, Sun Pharma up by 1.82%, Aurobindo Pharma up by 1.81% and HDFC up by 1.62%. On the flip side, Indian Oil Corp. down by 3.56%, GAIL India down by 3.01%, Power Grid Corporation down by 2.48%, Lupin down by 2.33% and Hindustan Unilever down by 2.16% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 28.28 points or 0.14% to 20,110.51, Hang Seng decreased 20.05 points or 0.08% to 25,674.53, Shanghai Composite decreased 8.76 points or 0.28% to 3,147.45 and Jakarta Composite decreased 6.13 points or 0.11% to 5,812.42. On the flip side, FTSE Bursa Malaysia KLCI increased 2.22 points or 0.13% to 1,777.79, KOSPI Index increased 12.84 points or 0.54% to 2,370.37 and Taiwan Weighted increased 49.34 points or 0.48% to 10,399.06.

All European markets were trading in red; Germany’s DAX decreased 47 points or 0.37% to 12,727.26, UK’s FTSE 100 dropped 41.06 points or 0.55% to 7,406.73 and France’s CAC was down by 30.38 points or 0.58% to 5,243.88.