Jubilation continues on D-Street

The local benchmarks continued to trade jubilantly in late afternoon session, with IT and TECK were biggest gainers among sectoral indices, rising more than a percent each, despite weak opening in European markets. The sentiments were lifted by positive Asian cues along with heavy buying in most of the sectors and by industry majors like TCS, ONGC and Infosys. Investors remained positive with Chairman of the Economic Advisory Council to the Prime Minister Bibek Debroy’s statement that India is expected to be a $ 6.5-7 trillion economy by 2030, and at the current exchange rate it would touch $ 10 trillion by 2035-40. Adding some optimism, Commerce and Industry Minister Suresh Prabhu said that the government is committed to increasing India's contribution to global trade in a ‘very significant’ manner. Some gains also came with the ICRA’s monthly review report which stated that the growth in the index of industrial production (IIP) is expected to rebound in November after hitting a three-month low of 2.2% in October this year, backed by improvement in major indicators, such as auto production, non-oil merchandise exports and rail freight growth.

On the global front, European markets were trading mostly in red, pulling back from the previous day's gains, as investors digested the latest in political and economic news coming from the region. However, Asian markets were trading mostly in green. Back home, in scrip specific development, HIL was trading higher after the company commenced the commercial production of its new product ‘Charminar Fortune’ at its plant located at Kondapalli, Andhra Pradesh.

The BSE Sensex is currently trading at 33917.57, up by 161.29 points or 0.48% after trading in a range of 33767.73 and 33959.46. There were 20 stocks advancing against 10 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were IT up by 1.41%, TECK up by 1.03%, Utilities up by 0.76%, Industrials up by 0.68% and Capital Goods up by 0.64%, while Consumer Durables down by 0.53% and Metal down by 0.31% were the only losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.15%, ONGC up by 1.91%, Infosys up by 1.81%, Tata Motors - DVR up by 1.68% and SBI up by 1.31%. On the flip side, Coal India down by 0.75%, Tata Steel down by 0.63%, Indusind Bank down by 0.57%, Dr. Reddy’s Lab down by 0.56% and Hero MotoCorp down by 0.36% were the top losers.

Meanwhile, backed by improvement in major indicators, such as auto production, coal output and rail freight growth, credit rating agency, ICRA in its monthly review on Indian Economy, has said that the growth in the index of industrial production (IIP) is expected to rebound in November after hitting a three-month low of 2.2% in October this year.

The ratings agency’s monthly review which is based on analysis of 16 volume-based indicators said that they all have recorded a year-on-year (Y-o-Y) expansion in November 2017. Out of 16, 10 indicators improved sequentially in November 2017, while several of the remaining indicators displayed a base effect-led moderation in the pace of Y-o-Y growth. As per report, auto production surged to a 38-month high of 19.0% in November 2017 from 2.2% in October 2017, on the back of improved growth rate of two wheelers, passenger vehicles (PV) and commercial vehicles (CV) industry.

The report found that hydro electricity generation and rail freight grew to 9.6% and 3.1% in November, as against October’s figures of 3.7% and 2.6, respectively. Following the same trend, non-oil merchandise exports came out of negative zone, by rising to +28.2% in November  from -3.3% in previous month, while growth in cargo handled at major ports rose to 4.8% from 3.4%. However, the report noted slowdown in the growth of coal output, thermal electricity generation, domestic airlines passengers, bank deposits, petrol consumption and in ATF consumption.

The CNX Nifty is currently trading at 10475.65, up by 35.35 points or 0.34% after trading in a range of 10448.25 and 10493.30. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were TCS up by 2.23%, ONGC up by 2.02%, Bajaj Finance up by 1.92%, Infosys up by 1.81% and SBI up by 1.10%. On the flip side, HCL Technologies down by 1.29%, Ultratech Cement down by 1.14%, Lupin down by 0.89%, Dr. Reddy’s Lab down by 0.77% and Coal India down by 0.75% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.84 points or 0.11% to 1,753.05, KOSPI Index increased 10.71 points or 0.44% to 2,440.54, Jakarta Composite increased 27.83 points or 0.45% to 6,211.22, Nikkei 225 increased 36.66 points or 0.16% to 22,902.76, Taiwan Weighted increased 48.3 points or 0.46% to 10,537.27 and Hang Seng increased 210.95 points or 0.72% to 29,578.01. On the flip side, Shanghai Composite decreased 3 points or 0.09% to 3,297.06.

European markets were trading mostly in red; Germany’s DAX decreased 3.92 points or 0.03% to 13,105.82 and France’s CAC decreased 0.36 points or 0.01% to 5,385.61. On the flip side, UK’s FTSE 100 increased 1.73 points or 0.02% to 7,605.71.