Markets off day’s high on profit booking

The local equity benchmarks trimmed their gains to come off intraday highs in late afternoon session, as investor opted to book profit at higher levels in the last leg of trade. Investors took note of a report that S&P said India’s activity indicator looks lackluster indicating they might not barge on the BBB- rating on India any time soon. Though the markets pare some gains, but managed to trade in green with taking support from ICRA’s report that India's economic growth rate in terms of Gross Value Added (GVA) is expected to improve to 6.3% in July-September quarter (Q2FY18) from 5.6% in the first quarter of FY18, on the back of a broad-based pickup in industrial growth, even as agriculture, forestry and fishing and services are likely to moderate. Traders were also continued to take some relief with report that as many as 43.67 lakh businesses have filed the initial GSTR-3B returns for the month of October -- the highest monthly return filing within due date. As many as 39.33 lakh returns were filed within due date for September and 28.46 lakh for August and 33.98 lakh for July. Meanwhile, the Cabinet approved a policy framework for central public sector enterprises (CPSEs) to negotiate the next round of wage revision with their workers.

On the global front, European markets were trading in green, as concerns over political tensions in Germany began to ease and investors awaited the presentation of the latest UK budget due later in the day. Asian markets were also trading in green. Back home, in scrip specific development, OM Metals Infraprojects gained after the company bagged a Letter of Intent (LoI) worth Rs 38.54 crore from Wapcos for works contract of North Koel Reservoir Project, Jharkhand.

The BSE Sensex is currently trading at 33562.81, up by 84.46 points or 0.25% after trading in a range of 33465.23 and 33654.53. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.13%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Industrials up by 0.40%, Consumer Disc up by 0.39%, Auto up by 0.35%, PSU up by 0.34% and Realty up by 0.30%, while Telecom down by 0.96%, Metal down by 0.76%, Healthcare down by 0.46%, Consumer Durables down by 0.33% and Energy down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 2.28%, SBI up by 1.66%, HDFC up by 1.60%, Tata Motors up by 1.23% and Asian Paints up by 1.11%. On the flip side, Dr. Reddy’s Lab down by 1.27%, Lupin down by 0.98%, Axis Bank down by 0.94%, Bharti Airtel down by 0.73% and Hindustan Unilever down by 0.70% were the top losers.

Meanwhile, highlighting auto industry’s quick revival from the negative impact of note ban, global ratings agency, Fitch Ratings in its latest report has said that Indian passenger vehicles (PV) and two-wheelers sales are likely to continue growing in high single digits in the near term, backed by sustained low cost of ownership and healthy rural spending due to good monsoons and higher public-sector wages.

As far as commercial vehicles (CV) were concerned, sales of medium and heavy commercial vehicles (MHCV) grew 20 per cent year-on-year in the quarter to September 2017 after declining in 2016. It further said that CV sales are expected to benefit from the government's infrastructure spending and more- efficient interstate movement of goods after the GST came into effect

Fitch Ratings ‘2018 outlook of Asia Pacific automotive manufacturers and suppliers’ report, automobile manufacturers’ spending on research and development (R&D) is expected to remain high due to focus on new BS VI emission compliant models. Leading automakers intend to invest in electric vehicles (EVS) after the government took steps to promote the switch to EVs over the long term. Fitch Ratings further said that component suppliers will benefit from growth in India and key overseas markets, including the CV market in the US, which showed signs of recovery in 2017.

The CNX Nifty is currently trading at 10341.45, up by 14.55 points or 0.14% after trading in a range of 10309.55 and 10368.70. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 4.41%, Adani Ports & SEZ up by 2.59%, SBI up by 1.80%, GAIL India up by 1.79% and HDFC up by 1.50%. On the flip side, Tech Mahindra down by 2.18%, Bharti Infratel down by 1.98%, Bajaj Finance down by 1.92%, Aurobindo Pharma down by 1.54% and Indusind Bank down by 1.54% were the top losers.

All Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 2.94 points or 0.17% to 1,723.62, KOSPI Index increased 9.81 points or 0.39% to 2,540.51, Shanghai Composite increased 19.97 points or 0.59% to 3,430.46, Jakarta Composite increased 30.81 points or 0.51% to 6,062.67, Taiwan Weighted increased 43.35 points or 0.4% to 10,822.59, Nikkei 225 increased 106.67 points or 0.48% to 22,523.15 and Hang Seng increased 185.42 points or 0.62% to 30,003.49.

All European markets were trading in green; France’s CAC increased 0.62 points or 0.01% to 5,366.77, Germany’s DAX increased 7.59 points or 0.06% to 13,175.13 and UK’s FTSE 100 increased 16.34 points or 0.22% to 7,427.68.