Bourses regain lost ground in late afternoon session

Indian bourses regained lost grounds in late afternoon session amid expectations of positive quarterly results along with firm European markets. PSU, Power and Utilities stocks were witnessing buying interest, while Healthcare, IT and auto stocks experienced some selling pressure. Traders took support with the private report stating that the slowdown in the Indian economy has bottomed out but the pace of recovery would critically depend on the initiatives that the government takes from now onwards. The broader markets were performing better with notable gains, too fuelled optimism. Furthermore, SBI’s report that the government is likely to achieve its fiscal deficit target of 3.2% this financial year as the budgeted disinvestment receipts are on track to realise Rs 72,500 crore, was also supporting the sentiments. Meanwhile, the government waived penalty on delayed filing of initial GST returns for the months of August and September.

On the sectoral front, realty shares were trading higher despite ICRA’s report that Indian realty sector continues to experience demand headwinds in near term, on the back of subdued macro-economic environment and consumer sentiment despite improvement in the new sales bookings during the April-June 2017 (Q1FY18) over the previous quarter (Q4FY17).

On the global front, European markets were trading in green as investors continued to monitor the latest corporate earnings and keep a close eye on Spain's constitutional crisis. Asian markets were also trading in green. Back home, in scrip specific development, Indosolar traded higher after the company received an approval for proposal for One Time Settlement (OTS) from Union Bank of India. The proposal has two components - Serviceable Debt and Non-Serviceable Debt.

The BSE Sensex is currently trading at 32608.24, up by 101.52 points or 0.31% after trading in a range of 32502.08 and 32670.37. 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 0.20%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were PSU up by 1.92%, Power up by 1.34%, Utilities up by 1.28%, Telecom up by 0.94% and Basic Materials up by 0.92%, while IT down by 0.61%, Healthcare down by 0.12%, Auto down by 0.10%, Consumer Durables down by 0.09% and Capital Goods down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.74%, ONGC up by 3.03%, NTPC up by 2.72%, ICICI Bank up by 1.89% and Hindustan Unilever up by 1.39%. On the flip side, Tata Motors down by 1.26%, Tata Motors - DVR down by 1.15%, Infosys down by 1.01%, Mahindra & Mahindra down by 0.94% and Sun Pharma down by 0.69% were the top losers.

Meanwhile, raising worries over demand for real estate, credit rating agency, ICRA in its latest report has said that Indian realty sector continues to experience demand headwinds in near term, on the back of subdued macro-economic environment and consumer sentiment despite improvement in the new sales bookings during the April-June 2017 (Q1FY18) over the previous quarter (Q4FY17).

As per the rating agency, the sales value of sector has shown positive trend by improving from Rs 2,709 core in Q3FY17 to Rs 3,310 crore in Q4FY17 and further to Rs 3,703 crore in Q1FY18 with the indication of the waning impact of demonetisation. ICRA further noted that though the noteban impact is fading away, RERA Act and Goods and Services Tax (GST) implementations led to short-term disruption in sales volumes during the first half of FY18.

However, the rating agency has said that few, large players have been able to show growth in volumes, which could be indicative of the scope for organised players to consolidate their market share under the new regulatory regimes of RERA and GST.

The CNX Nifty is currently trading at 10214.10, up by 29.25 points or 0.29% after trading in a range of 10182.40 and 10237.75. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 8.02%, SBI up by 3.64%, ONGC up by 3.03%, UPL up by 2.52% and NTPC up by 2.51%. On the flip side, Indusind Bank down by 2.01%, HCL Tech. down by 1.84%, Tech Mahindra down by 1.34%, Tata Motors down by 1.29% and Infosys down by 1.06% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 0.44 points or 0.02% to 2,490.49, Shanghai Composite increased 7.55 points or 0.22% to 3,388.25, Taiwan Weighted increased 8.57 points or 0.08% to 10,743.78, Jakarta Composite increased 14.52 points or 0.24% to 5,964.54 and Nikkei 225 increased 108.52 points or 0.5% to 21,805.17. On the flip side, Hang Seng decreased 150.91 points or 0.53% to 28,154.97 and FTSE Bursa Malaysia KLCI decreased 3.42 points or 0.2% to 1,738.05.

European markets were trading mostly in green; France’s CAC increased 4.96 points or 0.09% to 5,391.77 and Germany’s DAX was up by 8.25 points or 0.06% to 13,011.39. On the flip side, UK’s FTSE 100 decreased 9.1 points or 0.12% to 7,515.35.