Bourses add some gains; Sensex up by 93 points

The local equity benchmarks added some gains in late afternoon session, tracking higher opening in European markets. Investors continued picking up Healthcare, Telecom and Metals stocks, with Sun Pharma and Dr. Reddy’s Lab gaining the most. Traders took encouragement with rating agency ICRA’s expectations that gross value added (GVA) growth to rise by 50 basis points in 2018-19 to 7 percent, on the back of normal monsoon, a commitment towards fiscal consolidation at the Central and State level, and the commencement of broader efficiency gains related to Goods and Services Tax (GST). The markets were also taking support with the reports that the Securities and Exchange Board of India (SEBI) board will consider proposals to ease compliance norms for insolvent firms - especially with regard to trading, listing and de-listing, and declaring results-at its meeting on Thursday. Besides, the broader markets and firm Asian markets too aided the sentiments. However, lower November GST collection along with higher selling at Oil & Gas, PSU and Capital Goods counters, were restricting the gains. The government’s revenue collection under the GST stood at Rs 80,808 crore in the month of November, down from more than Rs 83,000 crore in the previous month.

On the global front, European markets were trading in green, amid light trade across markets worldwide due to the holiday period. Asian markets were also trading in green. Back home, in scrip specific development, Mcnally Bharat Engineering Company touched the roof after the company bagged an order for Engineering and Supply and Civil Works, Structural Works and Construction for 60 TPH Green Anode Plant from Vedanta for a value of Rs 133.50 crore.

The BSE Sensex is currently trading at 34103.64, up by 93.03 points or 0.27% after trading in a range of 34014.88 and 34137.97. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.33%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.16%, Telecom up by 0.69%, Metal up by 0.55%, Realty up by 0.39% and Basic Materials up by 0.38%, while Oil & Gas down by 0.30%, PSU down by 0.14% and Capital Goods down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 6.18%, Dr. Reddy’s Lab up by 1.91%, Mahindra & Mahindra up by 1.70%, Hindustan Unilever up by 1.04% and Tata Steel up by 0.78%. On the flip side, ICICI Bank down by 0.60%, ONGC down by 0.57%, Bharti Airtel down by 0.49%, Hero MotoCorp down by 0.46% and SBI down by 0.32% were the top losers.

Meanwhile, economic expansion in terms of gross value added (GVA) is expected to grow only marginally in the third quarter of current fiscal (Q3 FY18), on the back of weak kharif harvest and higher commodity prices. As per credit rating agency, ICRA’s latest report, GVA at basic prices would improve slightly at around 6.5% in Q3 and the same growth rate is expected for the whole fiscal year. However, the rating agency expects the country’s GVA growth to be above 7.5% in Q4 FY18, while 7% growth is expected in next fiscal year, owing to normal monsoon and the government’s commitment towards fiscal consolidation and GST.

The report also expects healthy growth in manufacturing volumes in the third quarter but expressed worries that rising commodity prices would increase input cost and this will put pressure on manufacturing margins and GVA growth of this sector in Q3 FY18. Further, ICRA noted that volume growth of mining and electricity generation sectors are expected to continue October’s down trend for remaining months of third quarter but higher commodity prices may support earning and GVA growth of these sectors in Q3 and this would support overall GVA growth.

On policy rates front, ICRA report do not expect Reserve of Bank (RBI) to commence hiking rates as the CPI inflation is forecast to persist above 5% for at least two quarters, the rating agency maintained its baseline expectation of an extended pause by the RBI on policy rates in the first half of Calendar 2018.

The CNX Nifty is currently trading at 10544.65, up by 13.15 points or 0.12% after trading in a range of 10515.65 and 10552.40. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 5.96%, Tech Mahindra up by 2.38%, Dr. Reddy’s Lab up by 1.98%, Aurobindo Pharma up by 1.78% and Vedanta up by 1.62%. On the flip side, Indian Oil Corporation down by 1.68%, Ultratech Cement down by 1.11%, ICICI Bank down by 0.90%, Bosch down by 0.79% and Bharti Airtel down by 0.79% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 9.33 points or 0.38% to 2,436.67, FTSE Bursa Malaysia KLCI increased 10.42 points or 0.59% to 1,770.41, Nikkei 225 increased 18.52 points or 0.08% to 22,911.21, Hang Seng increased 19.65 points or 0.07% to 29,597.66, Jakarta Composite increased 39.13 points or 0.63% to 6,260.15 and Taiwan Weighted increased 64.76 points or 0.62% to 10,486.67. On the flip side, Shanghai Composite decreased 30.34 points or 0.92% to 3,275.78.

All European markets were trading in green; UK’s FTSE 100 increased 15.56 points or 0.2% to 7,608.22, France’s CAC rose 18.58 points or 0.35% to 5,383.30 and Germany’s DAX was up by 36.04 points or 0.28% to 13,108.83.