Sensex, Nifty recover to trade in green

After swinging between red and green terrain, Indian equity benchmarks showed some recovery to trade comfortably in green trajectory in late afternoon session even as European and Asian markets slipped after North Korea test-launched an intermediate-range ballistic missile days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang's weapons programmes. Sentiments remained optimistic with the Railway Minister Suresh Prabhu’s statement that the India’s GDP growth to the tune of 8-9% was expected and the new tax rates would contribute significantly towards this. He also said the GST aims at increasing the number of taxpayers and, as the tax revenue rises, the GDP will also increase. Some support also came with the report that the Financial Stability Board (FSB), an international body for global financial system, placed India in the league of countries that are ‘compliant or largely compliant’ on implementation of priority area reforms. Meanwhile, the Reserve Bank of India (RBI) has increased the foreign portfolio investor (FPI) investment limit in Central Government Securities (G-secs) as well as in State Development Loans (SDLs) for the quarter July-September 2017, which will be effective from July 4, 2017.

On the global front, European markets were trading in red as international relations came under pressure and oil prices slipped, halting a run of eight straight days of gains. Asian markets were also trading in red. Back home, in scrip specific development, Datamatics Global Services edged higher after the company signed a definitive agreement to acquire a controlling stake in TechJini, a boutique mobile and web application development company, headquartered in Bangalore. The objective of this acquisition is to further strengthen Datamatics’ mobility offerings through TechJini’s range of smart technology solutions.

The BSE Sensex is currently trading at 31242.74, up by 21.12 points or 0.07% after trading in a range of 31166.37 and 31353.46. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.14%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Energy up by 1.10%, Oil & Gas up by 0.66%, IT up by 0.64%, TECK up by 0.39% and Metal up by 0.26%, while Realty down by 0.84%, Telecom down by 0.58%, Consumer Durables down by 0.55%, Healthcare down by 0.39% and FMCG down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.84%, Adani Ports & SEZ up by 1.54%, Infosys up by 1.27%, Hindustan Unilever up by 1.03% and NTPC up by 1.02%. On the flip side, Dr. Reddy’s Lab down by 1.64%, ITC down by 1.39%, Hero MotoCorp down by 1.30%, Tata Motors - DVR down by 1.20% and Axis Bank down by 0.94% were the top losers.

Meanwhile, ahead of the G20 summit in Germany on July 7-8, an international body for global financial system, the Financial Stability Board (FSB), in its status report ‘progress in financial regulatory reforms in various jurisdictions’ has placed India in the league of countries that are compliant or largely compliant on implementation of priority area reforms.

In the report, India has been found to be compliant on the Basel III reforms in area of risk-based capital, while on the liquidity coverage ratio, it is listed as largely compliant. With regard to the Net Stable Funding Ratio (NSFR), India figured among the countries where “final rule published but not in force, or draft regulation published”. Regarding compensation related reforms, it was placed among the jurisdictions where all except a few (three or less) FSB Principles and Standards implemented.

The FSB report further said that in the shadow banking, India remained among the jurisdictions where the final implementation measures are in force for valuation, liquidity management and stable net asset for monetary market funds, while final adoption measures were taken for implementing an incentive alignment regime and disclosing requirements on securitisation. It further added that on trade reporting in the over-the-counter derivatives market, India was among the countries where necessary regulatory framework was being implemented.

The CNX Nifty is currently trading at 9625.35, up by 10.35 points or 0.11% after trading in a range of 9595.50 and 9650.65. There were 23 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.17%, Adani Ports & SEZ up by 1.62%, Hindalco up by 1.42%, BPCL up by 1.40% and Infosys up by 1.28%. On the flip side, Indiabulls Housing Finance down by 2.00%, Dr. Reddy’s Lab down by 1.90%, ITC down by 1.49%, Hero MotoCorp down by 1.25% and Bank of Baroda down by 1.24% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 395.16 points or 1.53% to 25,389.01, Taiwan Weighted decreased 65.01 points or 0.62% to 10,347.78, Jakarta Composite decreased 47.64 points or 0.81% to 5,862.59, Nikkei 225 decreased 23.45 points or 0.12% to 20,032.35, KOSPI Index decreased 13.96 points or 0.58% to 2,380.52, Shanghai Composite decreased 13.11 points or 0.41% to 3,182.80 and FTSE Bursa Malaysia KLCI decreased 4.62 points or 0.26% to 1,764.05.

All European markets were trading in red; UK’s FTSE 100 slipped 15.7 points or 0.21% to 7,361.39, Germany’s DAX decreased 15.46 points or 0.12% to 12,459.85 and France’s CAC was down by 8.09 points or 0.16% to 5,187.63.