Indian bourses trade firm near highest points of the day

Indian equity markets extended gains and were trading firm to hover near the highest points of the day in the afternoon session on account of buying in front line blue chip counters. Sensex and Nifty were trading above the crucial 31,800 and 9,800 levels respectively, with gains of around half a percent. Sentiments remained optimistic with the private report that banks’ revenues are likely to grow at around 10% year-on-year (y-o-y). The report further said that net interest income is also seen growing at a similar pace. Some comfort also came with India Meteorological Department’s (IMD) statement that the seasonal monsoon rains have covered most of India and the amount of precipitation so far is within expectations, raising hopes for higher farm output after increased sowing of rice and soybean crops. Moreover, firm global cues coupled with optimism over corporate earnings too buoyed the sentiments. In scrip specific development, Lupin was up by over half a percent after entering into collaboration with the American Academy of Ophthalmology that would seek to expand and enhance continuing ophthalmic education in India.

On the global front, Asian markets were trading mostly in green, following the mostly positive cues overnight from Wall Street. Besides, investors awaited testimony from Federal Reserve Chair Janet Yellen for clues on when the central bank would tighten US monetary policy. Back home, the BSE Sensex is currently trading at 31845.09, up by 129.45 points or 0.41% after trading in a range of 31744.27 and 31852.43. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index was up by 0.41%.

The top gaining sectoral indices on the BSE were IT up by 1.56%, TECK up by 1.17%, Auto up by 1.03%, Industrials up by 0.97% and Capital Goods up by 0.90%, while Consumer Durables down by 0.27% and FMCG down by 0.17% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.31%, Tata Motors - DVR up by 2.52%, Infosys up by 2.46%, Mahindra & Mahindra up by 1.77% and NTPC up by 1.47%. On the flip side, Cipla down by 1.53%, Coal India down by 1.10%, Adani Ports & SEZ down by 0.61%, ITC down by 0.60% and Dr. Reddy’s Lab down by 0.52% were the top losers.

Meanwhile, following improved market conditions in US and other markets, India's garment exports are expected to clock 15-18% growth in the financial year 2017-18, as against $17 billion registered in last fiscal. Textile Commissioner Kavita Gupta has said that since January 2017, the country has registered 18% growth in garment exports and she expects that similar trend may continue for remaining period this year.

Gupta has said that Rebate of State Levies (ROSL) scheme has been introduced to boost exports. She also said that the government has given an additional 10% subsidy for the garment and made up segments, which means the home textile industry will effectively get 25% capital investment subsidy on new machines they bring in, leading to efficiency and modernisation of the sector. She added that subsidies have proved beneficial for the sector and led to increase in employment and attracted huge investments.

The commissioner further said that the textile industry should utilise the various government schemes for the benefit of customers. She also noted that the industry is looking at entering into CIS, Africa and Far East markets to increase garment exports, apart from traditional markets of US and Europe.

The CNX Nifty is currently trading at 9817.90, up by 46.85 points or 0.48% after trading in a range of 9783.75 and 9819.55. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.23%, Infosys up by 2.70%, Tata Motors - DVR up by 2.39%, Mahindra & Mahindra up by 1.87% and TCS up by 1.85%. On the flip side, Cipla down by 1.51%, Coal India down by 0.85%, Bank of Baroda down by 0.78%, ITC down by 0.59% and Adani Ports & SEZ down by 0.59% were the top losers.

The Asian markets were trading mostly in green; Shanghai Composite increased 2.1 points or 0.07% to 3,214.73, Jakarta Composite rose 6.89 points or 0.12% to 5,778.40, KOSPI Index added 13.9 points or 0.58% to 2,396.00, Nikkei 225 surged 114.5 points or 0.57% to 20,195.48, Taiwan Weighted increased 125.66 points or 1.22% to 10,415.57 and Hang Seng was up by 392.86 points or 1.54% to 25,892.92.

On the flip side, FTSE Bursa Malaysia KLCI was down by 0.22 points or 0.01% to 1,756.91.