Markets near day’s high; Auto stocks ride higher

Adding some gains, the local equity indices reached at their intraday high points in late afternoon session, aided by higher opening in European markets. BJP’s win in key state elections continued to boost the sentiments, with Auto stocks were contributing the most to the indices' gains. Optimism remained among the investors after Finance Ministry in its year end review report stated that overall fundamentals of the economy remained strong in the current financial year, on the back of firm macroeconomic indicators, improvement in World Bank's ease of doing business ranking and sovereign rating upgrade by Moody's. Traders also continued to take support with a private report highlighting brighter growth prospects for India by FY20 and beyond. However, it said that India’s growth prospect is likely to see a slowdown in the next two years, followed by recovery in the medium term, with 2019-20 GDP expected at around 7.6%. Moreover, the broader indices were performing better than the larger peers, with the gains of more than a percent. On the sectoral front, select banking sector stocks were trading on green, amid global rating agency Moody's report that capital raising by a number of public sector banks (PSBs), including PNB and UBI, is credit positive because it will help improve their loss-absorbing buffers.

On the global front, European markets were trading mostly in green, as investors remain focused on the progress of the proposed tax legislation in the US. The House of Representatives will vote on the most sweeping, pro-growth tax reform legislation later today, while the Senate vote is expected to follow short on the heels. However, Asian markets were trading mostly in red. Back home, in scrip specific development, Rajesh Exports was trading higher after the company procured a prestigious order for its products for a value of Rs 878 crore.

The BSE Sensex is currently trading at 33737.34, up by 135.66 points or 0.40% after trading in a range of 33666.62 and 33784.95. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.18%, while Small cap index was up by 1.25%.

The top gaining sectoral indices on the BSE were Auto up by 2.28%, Consumer Disc up by 1.75%, Consumer Durables up by 1.65%, Telecom up by 1.23% and Industrials up by 1.12%, while IT down by 0.56% and TECK down by 0.25% were the only losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 3.94%, Maruti Suzuki up by 2.71%, Tata Motors up by 1.96%, Bajaj Auto up by 1.88% and Tata Motors - DVR up by 1.72%. On the flip side, Wipro down by 1.29%, Infosys down by 1.16%, Kotak Mahindra Bank down by 0.89%, Indusind Bank down by 0.52% and Yes Bank down by 0.45% were the top losers.

Meanwhile, highlighting major achievements of the government during 2017-18 year (FY18), the Finance Ministry in its year end review report has said that overall fundamentals of the economy remained strong in the current financial year, on the back of firm macroeconomic indicators, improvement in World Bank's ease of doing business ranking and sovereign rating upgrade by Moody's.

The report also highlighted various reforms measures taken by the government to sustain growth of the country including Goods and Services Tax (GST), demonetization and recapitalization of public sector banks. The Finance Ministry termed the GST as ‘transformational reform’, as it has brought transparency and accountability in business transactions along with ensuring ease of doing business and rationalization in tax rates, while on note ban it said that the exercise has helped to cleanse the economy of black money and increased number of taxpayers.

As per the review report, manufacturing, electricity, gas, water supply & other utility services trade, hotels, transport & communication and services related to broadcasting sectors registered growth of over 6.0% in Q2 of 2017-18 over Q2 of 2016-17. The Finance Ministry also stated that enhancing the quality of life remained primary goal for Government when it put into implementation the recommendations of the 7th Central Pay Commission to benefit more than 48 Lakh Central Government Employees.

The CNX Nifty is currently trading at 10429.25, up by 40.50 points or 0.39% after trading in a range of 10406.00 and 10442.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.73%, Hero MotoCorp up by 3.72%, Maruti Suzuki up by 2.88%, Eicher Motors up by 2.77% and Bajaj Auto up by 2.32%. On the flip side, HCL Technologies down by 1.79%, Wipro down by 1.40%, Infosys down by 1.34%, HPCL down by 0.97% and Sun Pharma down by 0.77% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted decreased 39.18 points or 0.37% to 10,467.34, Nikkei 225 decreased 33.77 points or 0.15% to 22,868.00, FTSE Bursa Malaysia KLCI decreased 16.31 points or 0.93% to 1,735.33 and KOSPI Index decreased 3.35 points or 0.13% to 2,478.53. On the flip side, Jakarta Composite increased 12.24 points or 0.2% to 6,146.21, Shanghai Composite increased 28.62 points or 0.88% to 3,296.54 and Hang Seng increased 203.25 points or 0.7% to 29,253.66.

European markets were trading mostly in green; UK’s FTSE 100 increased 17.71 points or 0.23% to 7,554.72 and Germany’s DAX increased 21.7 points or 0.16% to 13,334.00. On the flip side, France’s CAC decreased 5.53 points or 0.1% to 5,415.05.