Sensex, Nifty turn positive

After witnessing choppiness, the local benchmarks managed to trade in green territory, in late afternoon session, despite weak opening in European markets. Traders took encouragement with the reports that India has climbed up one position to 126th in the International Monetary Fund's (IMF) ranking of countries based on their Gross Domestic Product (GDP) per capita. India's GDP per capita went up to $7,170 (Rs 4.66 lakh) in 2017 from $6,690 last year, helping improve its rank by a position to 126th. Some support also came with SBI Research’s latest report that India would need not wait for 13 long years for the next sovereign upgrade by a rating agency, with government’s resolve on fiscal consolidation target along with recent reform measures like Goods and Services Tax (GST) and Bankruptcy and Insolvency code. Adding some comfort, Finance Secretary Hasmukh Adhia said that the latest changes have resolved nearly 90% of problems and discontentment related to the indirect tax regime. Moreover, all the sectoral indices were trading higher except IT and TECK, while the broader markets continued the gaining momentum.

On the global front, European markets were trading in red, as preliminary coalition talks in Germany collapsed. Asian markets were also trading in red on growing doubts over US plans to update the tax system. Back home, in scrip specific development, Meghmani Organics gained after its’ Laboratory Facility situated at Chharodi village, Sanand Taluka, Ahmedabad district in state of Gujarat received Certificate of Good Laboratory Practice (GLP) Compliance from National Good Laboratory Practice (GLP) Compliance Monitoring Authority (NGCMA), Department of Science and Technology, Government of India.

The BSE Sensex is currently trading at 33380.45, up by 37.65 points or 0.11% after trading in a range of 33288.21 and 33449.53. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Realty up by 2.23%, Utilities up by 1.31%, Metal up by 1.07%, Energy up by 0.84% and Power up by 0.83%, while IT down by 0.37% and TECK down by 0.27% were the only losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.62%, Kotak Mahindra Bank up by 1.22%, NTPC up by 1.21%, Reliance Industries up by 1.17% and ITC up by 0.89%. On the flip side, ICICI Bank down by 1.83%, Cipla down by 1.62%, Infosys down by 1.09%, Mahindra & Mahindra down by 0.92% and Dr. Reddy’s Lab down by 0.74% were the top losers.

Meanwhile, raising optimism over the government's commitments to improve economic efficiency, the SBI Research in its latest report has said that India would need not wait for 13 long years for the next sovereign upgrade by a rating agency, with government’s resolve on fiscal consolidation target along with recent reform measures like Goods and Services Tax (GST) and Bankruptcy and Insolvency code.

The report pointed that the government’s Rs 2.11 lakh crore recapitalisation plan will help banks to tackle the bad loan problem and will also give a push to improve their health. The report further highlighting implementation new tax regime and RERA, said that these moves will improve overall economic and investment sentiment in the country.

The report also noted stability in the country’s inflation and sustainability in current account deficit. However, it raised concern that the markets would factor in a higher fiscal deficit in 2017-18 and it blamed GST for this, as it impacted the centre's short-term revenue. SBI Research report further suggested that the Reserve bank should stop further Open Market Operations (OMO) sales for now as it has been sucking out liquidity since July through OMO.

The CNX Nifty is currently trading at 10297.15, up by 13.55 points or 0.13% after trading in a range of 10261.50 and 10309.50. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 3.08%, Coal India up by 2.58%, Yes Bank up by 2.24%, Kotak Mahindra Bank up by 1.61% and Indiabulls Housing Finance up by 1.50%. On the flip side, Ambuja Cement down by 3.28%, Ultratech Cement down by 1.85%, ICICI Bank down by 1.81%, Cipla down by 1.34% and Tech Mahindra down by 1.30% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 135.04 points or 0.6% to 22,261.76, Taiwan Weighted decreased 37.09 points or 0.35% to 10,664.55, KOSPI Index decreased 6.32 points or 0.25% to 2,527.67 and FTSE Bursa Malaysia KLCI decreased 2.21 points or 0.13% to 1,719.45. On the flip side, Shanghai Composite increased 9.49 points or 0.28% to 3,392.40, Jakarta Composite increased 26.96 points or 0.45% to 6,078.70 and Hang Seng increased 61.27 points or 0.21% to 29,260.31.

All European markets were trading in red; Germany’s DAX decreased 30.98 points or 0.24% to 12,962.75, UK’s FTSE 100 decreased 26.51 points or 0.36% to 7,354.17 and France’s CAC decreased 9.95 points or 0.19% to 5,309.22.