Benchmarks extend gaining streak; Sensex reclaims 33,500 mark

Extending their winning streak for fifth straight session, Indian equity benchmarks made a positive start and are trading in fine fettle in early deals amid sanguine global cues. Traders took some encouragement with report that GST tax returns filed increased. Filings of the summary returns GSTR-3B - with which the tax needs to be paid or nil liability claimed - have increased over the months since July. Till the August 20 deadline for filing GSTR-3B for the month of July without fine, 34 lakh returns were filed; the returns filed before the respective deadline for September was higher at 39.4 lakh and the number for October grew further to 43.7 lakh. Some support also came with report that earnings of companies in the September quarter surprised investors and analysts, who almost doubled their upgrade ratings on the stocks they cover after the results.

Global cues too remained supportive with Asian markets rallying at this point of time, buoyed by fresh all-time highs for US equities with investors energized by the outlook for profits and tax reform. The US markets surged in the last session and the major averages reached new record closing highs.

Back home, shares of leather and footwear companies remained in focus on hopes of incentive package from the government. The Union Cabinet is expected to soon take a decision on Rs 2,600 crore incentive package for the labour-intensive leather and footwear sector to boost exports and job creation. Telecom stocks remained under pressure despite the Telecom Regulatory Authority of India (TRAI) recommending the removal of the intra-band cap of 50% spectrum holding by operators in a circle.

The BSE Sensex is currently trading at 33569.92, up by 91.57 points or 0.27% after trading in a range of 33535.06 and 33624.49. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index shed 0.23%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Realty up by 0.88%, Consumer Discretionary Goods & Services up by 0.59%, Consumer Durables up by 0.59%, Auto up by 0.37% and Industrials was up by 0.23%, while Telecom down by 0.74%, Metal down by 0.45%, Oil & Gas down by 0.27%, Healthcare down by 0.25% and PSU was down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 2.08%, HDFC up by 1.76%, Bajaj Auto up by 1.06%, Mahindra & Mahindra up by 1.06% and Tata Motors up by 0.75%. On the flip side, Dr. Reddys Lab down by 1.19%, Bharti Airtel down by 0.96%, Axis Bank down by 0.67%, Sun Pharma down by 0.52% and Hindustan Unilever down by 0.31% were the top losers.

Meanwhile, a joint study carried out by the Associated Chambers of Commerce & Industry of India (Assocham) and Grant Thornton has stated that Indian food processing sector has the potential to attract $33 billion investment and generate employment of 9 million persons’ days by 2024. It also said that there is a huge scope for large investments in food processing technologies, skill development and equipment as total food production in India is estimated to double in next 10 years. According to the joint study, Indian food and retail market is projected to touch $482 billion by 2020 from $258 billion in 2015.

The joint study titled, ‘Food processing sector-Challenges & growth enablers,’ suggested that while the sector provides opportunity for growth, it needs to focus on product conformity with global standards and quality together with factors like logistics traceability and safety, quality of packaging and delivery. It also said that there is a need for policy intervention and field level changes for India to develop global competitiveness in many related sub-sectors and ensure that they are firmly entrenched in global value chains.

Assocham-Grant Thornton study stated that fast growth in food processing and simultaneous improvement in the development of value chain are of great importance to achieve favourable terms of trade for India’s agriculture sector both in domestic and international markets. It said given the trade in production of food commodities, the food processing industry in India is on an assured track of growth and profitability. It added that even marginal reductions in post-harvest losses of fruits and vegetables, which are at about 25-30%, will give better returns and improve farmers' incomes.

The CNX Nifty is currently trading at 10344.65, up by 17.75 points or 0.17% after trading in a range of 10341.85 and 10368.70. There were 24 stocks advancing against 25 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Zee Entertainment up by 3.97%, Adani Ports up by 2.30%, HDFC up by 1.68%, Mahindra & Mahindra up by 1.32% and Ambuja Cement up by 1.18%. On the flip side, Tech Mahindra down by 2.36%, Bajaj Finance down by 1.57%, Dr. Reddys Lab down by 1.39%, Bharti Infratel down by 1.37% and UPL down by 0.86% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 4.54 points or 0.26% to 1,725.22, KOSPI Index gained 9.1 points or 0.36% to 2,539.80, Shanghai Composite jumped 17.17 points or 0.5% to 3,427.66, Jakarta Composite rose 17.64 points or 0.29% to 6,049.50, Taiwan Weighted surged 76.19 points or 0.71% to 10,855.43, Nikkei 225 added 154.28 points or 0.69% to 22,570.76 and Hang Seng was up by 269.66 points or 0.9% to 30,087.73.