Sensex, Nifty trim losses; IT top gainer

The local benchmarks trimmed most of their losses in late afternoon session, supported by higher IT, TECK and Realty stocks. Traders got relief with World Economic Forum's (WEF) Executive chairman Klaus Schwab’s statement that India presents an image of optimism and promise, even with series of transformational and significant global challenges like deepening income inequality and escalating violence around the world. He added that this optimism is due to the government’s bold and structural reforms which have boosted the macroeconomic fundamentals and enhanced India’s long-term economic outlook. Some support also came with the World Bank’s report stating that India’s Gross Domestic Product (GDP) will grow at 7.3% in the year 2018 and rise further to 7.5% in the following two years. Adding some optimism, the government allowed FPIs and FIIs to invest in power exchanges through primary market and it also approved investment up to 49% under approval mechanism in Air India to facilitate its divestment process. However, the trade remained in red as concerns remained among the investors with chief statistician TCA Anant’s statement that lower-than-expected inflation is estimated to pull down nominal GDP growth to 9.5% in FY18, against the budgeted 11-11.5%. He further added that this will impact the final projection of the FY18 fiscal deficit (expressed as a percentage of nominal GDP). On the sectoral front, retail stocks gained after the Union Cabinet allowed 100% foreign direct investment in single-brand retail via automatic route.

On the global front, European markets were trading slightly in green, amid caution ahead of earnings from US banks including JPMorgan Chase & Co. and Wells Fargo & Co. due this week.  Asian markets were trading in red. Back home, in scrip specific development, Simplex Infrastructures jumped higher after the company received an order from Mumbai Metropolitan Region Development Authority (MMRDA) for Rs 1080 crore for part design and construction of elevated viaduct and 11 elevated stations.

The BSE Sensex is currently trading at 34441.64, down by 1.55 points after trading in a range of 34311.63 and 34565.63. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.38%, while Small cap index down by 0.06%.

The top gaining sectoral indices on the BSE were IT up by 1.21%, TECK up by 1.07%, Realty up by 0.74%, Telecom up by 0.66% and Energy up by 0.33%, while Consumer Durables down by 0.67%, Auto down by 0.51%, Capital Goods down by 0.37%, PSU down by 0.32% and Consumer Disc down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.35%, Wipro up by 1.61%, Adani Ports & SEZ up by 1.50%, Coal India up by 1.30% and Indusind Bank up by 0.63%. On the flip side, Asian Paints down by 1.42%, Tata Motors - DVR down by 1.34%, SBI down by 1.02%, Power Grid Corporation down by 0.95% and Dr. Reddy’s Lab down by 0.91% were the top losers.

Meanwhile, giving a thumbs up to India's extraordinary achievements and expanding leadership in a wide range of global initiatives, World Economic Forum's (WEF) Executive chairman Klaus Schwab has said that India presents an image of optimism and promise, even with series of transformational and significant global challenges like deepening income inequality and escalating violence around the world. He added that this optimism is due to the government’s bold and structural reforms which have boosted the macroeconomic fundamentals and enhanced India’s long-term economic outlook.

WEF Chief noted that India’s extraordinary achievements corroborate that the country possesses a robust institutional mechanism for deftly counterbalancing pervasive diversity while projecting a single identity. He further said that India will play a greater role at the global economic front by enriching the global policy debate as well as assisting in designing and developing better policies for a prosperous world and highlighted that India is in transition and will soon become a force to be reckoned with.

Klaus Schwab also said that the country should reap the benefits of its ongoing reforms process and expressed need to address some critical challenges in the country only. He emphasized that time is right for India to amplify its global influence and accelerate the development of robust and resilient economic, social and political foundations.

The CNX Nifty is currently trading at 10625.75, down by 11.25 points or 0.11% after trading in a range of 10592.70 and 10655.50. There were 17 stocks advancing against 32 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were TCS up by 2.55%, Wipro up by 2.30%, HPCL up by 1.87%, HCL Tech. up by 1.42% and Coal India up by 1.36%. On the flip side, Eicher Motors down by 1.76%, UPL down by 1.66%, Asian Paints down by 1.52%, Indiabulls Housing Finance down by 1.36% and Dr. Reddy’s Lab down by 1.29% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted decreased 83.8 points or 0.77% to 10,831.09, Nikkei 225 decreased 61.79 points or 0.26% to 23,788.20, KOSPI Index decreased 10.48 points or 0.42% to 2,499.75, Jakarta Composite decreased 9.47 points or 0.15% to 6,363.67 and FTSE Bursa Malaysia KLCI decreased 4.52 points or 0.25% to 1,822.43. On the flip side, Shanghai Composite increased 7.94 points or 0.23% to 3,421.83 and Hang Seng increased 62.31 points or 0.2% to 31,073.72.

European markets were trading mostly in green; France’s CAC increased 0.22 points or 0% to 5,524.16 and UK’s FTSE 100 increased 12.64 points or 0.16% to 7,743.66. On the flip side, Germany’s DAX decreased 16.07 points or 0.12% to 13,369.52.