Markets recover losses to trade in green

In a volatile session, Indian bourses recovered from the losses to trade in green in late afternoon session, on the back of firm opening in European markets. Traders took encouragement with Union Minister of Minority Affairs Mukhtar Abbas Naqvi’s statement that the Goods and Services Tax (GST) will remain as a Good and Simple Tax in the coming days to come. In line with larger peers, the broader indices too traded in green amid buying appeared at Telecom, Energy and TECK counters. Sentiments also took some support with Prime Minister Narendra Modi’s statement that the Indian economy is on track and is going in the right direction on back of various reforms and hard decisions. He also assured that the government will continue to take important decisions regarding the economic reforms. Adding some optimism, the private report stated that the Indian economy is expected to see a rebound in the July-September quarter of this year with a GVA growth rate of 6.3 percent. However, gains were limited ahead of F&O expiry and Infosys earnings due later this week.

On the global front, European markets were trading higher as investors monitored fresh corporate earnings and awaited any further developments from Spain's ongoing constitutional crisis. Asian markets were also trading in green. Back home, in scrip specific development, Tata Teleservices (Maharashtra) (TTML) touched the roof after the company received an approval to raise additional funds up to an aggregate amount of Rs 20,000 crore by issue of one or more types of securities/instruments/modes.

The BSE Sensex is currently trading at 32436.51, up by 46.55 points or 0.14% after trading in a range of 32312.74 and 32614.89. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index up by 0.01%.

The top gaining sectoral indices on the BSE were Telecom up by 2.80%, Energy up by 1.76%, TECK up by 1.13%, Realty up by 0.92% and Basic Materials up by 0.87%, while FMCG down by 0.78%, Healthcare down by 0.71%, Capital Goods down by 0.40%, Auto down by 0.22% and Industrials down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.98%, Reliance Industries up by 2.92%, ICICI Bank up by 2.17%, Coal India up by 1.55% and Hero MotoCorp up by 1.47%. On the flip side, Cipla down by 2.43%, Tata Motors - DVR down by 2.22%, Axis Bank down by 1.87%, HDFC down by 1.83% and Hindustan Unilever down by 1.58% were the top losers.

Meanwhile, Prime Minister Narendra Modi has said that the Indian economy is on track and is going in the right direction on back of various reforms and hard decisions. He also assured that the government will continue to take important decisions regarding the economic reforms and further noted that while initiating these measures the government would maintain financial stability of the country.

Narendra Modi further mentioned that the production of coal, natural gas, electricity and other items has increased enormously, adding that foreign investors are also making record investments in the country. He highlighted that the country’s foreign exchange reserves have jumped to $40,000 crore from $30,000 crore.

The Prime Minister also tried to assure the traders over the Goods and Service Tax (GST), saying that their past records will not be checked by the Income Tax department if they join the formal economy by getting themselves registered under the new tax regime.

The CNX Nifty is currently trading at 10158.15, up by 11.60 points or 0.11% after trading in a range of 10124.50 and 10224.15. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.00%, Ultratech Cement up by 3.75%, Reliance Industries up by 2.99%, ICICI Bank up by 2.17% and Ambuja Cement up by 1.57%. On the flip side, Bharti Infratel down by 2.79%, UPL down by 2.60%, Cipla down by 2.56%, Axis Bank down by 1.87% and HDFC down by 1.76% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 0.51 points or 0.02% to 2,490.05, FTSE Bursa Malaysia KLCI increased 1.81 points or 0.1% to 1,742.46, Shanghai Composite increased 2.05 points or 0.06% to 3,380.70, Taiwan Weighted increased 6.33 points or 0.06% to 10,735.21, Jakarta Composite increased 29.62 points or 0.5% to 5,959.17 and Nikkei 225 increased 239.01 points or 1.11% to 21,696.65. On the flip side, Hang Seng decreased 181.36 points or 0.64% to 28,305.88.

All European markets were trading in green; UK’s FTSE 100 increased 6.97 points or 0.09% to 7,530.20, France’s CAC rose 18.69 points or 0.35% to 5,391.07 and Germany’s DAX was up by 45.84 points or 0.35% to 13,037.12.