Sensex, Nifty remain strong; Bank, FMCG top gainers

The local equity benchmarks remained strong in late afternoon session, tracking firm opening of European markets.  On the domestic front traders were taking encouragement with India Ratings and Research’s latest report that the country's economic growth  is expected to improve to 7.1 per cent next fiscal from 6.5 per cent this year, buoyed by robust consumption demand and low commodity prices. Besides surge in Direct tax collection continued to support the investor’ sentiments. The government’s revenue collection during the first nine-and-a-half months of the current fiscal have risen by 18.7 per cent to Rs. 6.89 lakh crore, higher than the net collections for the corresponding period of last year, mainly on account of a healthy growth in advance tax mop-up. Adding some optimism among the traders, Ratings agency Moody's Investors Service has said that the change in the borrowing of the government from Rs 50,000 crore to Rs 20,000 crore will not affect India's sovereign rating. However, some gains got trimmed on selling in Realty, Metal and Telecom stocks. The broader markets too lost ground with the BSE Midcap and Small cap falling more than a percent.

On the global front, European markets were trading mostly in green, buoyed by another record close on Wall Street. Investors bet on increased economic growth and improved corporate earnings. Asian markets were also trading in green. Back home, in scrip specific development, 5Paisa Capital was trading higher after the company received approval from Multi Commodity Exchange of India (MCX) for membership of MCX as Trading cum Clearing Member/ Stock Broker and Self-Clearing member with effect from January 16, 2018.

The BSE Sensex is currently trading at 35413.73, up by 331.91 points or 0.95% after trading in a range of 35338.75 and 35507.36. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.19%, while Small cap index was down by 1.02%.

The top gaining sectoral indices on the BSE were Bankex up by 1.40%, FMCG up by 1.20%, Auto up by 0.38% and Capital Goods up by 0.15%, while Realty down by 2.82%, Metal down by 2.33%, Telecom down by 1.83%, Basic Materials down by 1.47% and Utilities down by 1.41% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.84%, HDFC Bank up by 2.81%, Yes Bank up by 2.74%, HDFC up by 2.37% and Mahindra & Mahindra up by 2.24%. On the flip side, Tata Steel down by 3.26%, Coal India down by 2.04%, Adani Ports & SEZ down by 1.14%, Wipro down by 1.01% and Bharti Airtel down by 0.92% were the top losers.

Meanwhile, the government’s wide-ranging economic reforms including vision of Digital India are expected to make the country a $5 trillion economy in the future. Commerce and Industries Minister Suresh Prabhu has expressed optimism that Indian economy is likely to grow to $5 trillion over the next eight to nine years, backed by government’s focus on bridging digital divide which is also helping people scale up their income.

Commerce Minister further elaborated that $1 trillion of the turnover of $5 trillion will come from the manufacturing sector and in view of this, the department is working on the plans to promote manufacturing in all sectors. He also said that if manufacturing gets digitized, it will create huge opportunity for technology firms. He also highlighting contribution of services sector in the country’s overall income and said 60% of the $5-trillion will come from services which includes various services not being even thought of at present, like home care services.

Besides these two sectors, Commerce Minister also mentioned another important sector farming, as a major revenue contributor and expressed need of transformation to this sector. On International trade front, Prabhu said that they are also working on a strategy for international trade which will contribute $2 trillion to the economy where contribution can come from both manufacturing and services and further noted that it will be driving factor for the GDP growth.

The CNX Nifty is currently trading at 10854.25, up by 65.70 points or 0.61% after trading in a range of 10844.95 and 10887.50. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.77%, Indiabulls Housing Finance up by 3.50%, HDFC Bank up by 2.95%, Yes Bank up by 2.85% and ITC up by 2.73%. On the flip side, Bharti Infratel down by 5.08%, Ultratech Cement down by 3.39%, Tata Steel down by 2.67%, GAIL India down by 2.61% and Hindalco down by 2.53% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 0.38 points or 0.02% to 2,515.81, Jakarta Composite increased 13 points or 0.2% to 6,457.52, Shanghai Composite increased 30.08 points or 0.87% to 3,474.75, Taiwan Weighted increased 66.77 points or 0.61% to 11,071.57 and Hang Seng increased 138.53 points or 0.43% to 32,121.94. On the flip side, Nikkei 225 decreased 104.97 points or 0.44% to 23,763.37 and FTSE Bursa Malaysia KLCI decreased 5.69 points or 0.31% to 1,822.94.

European Markets were trading mostly in green; France’s CAC increased 3.73 points or 0.07% to 5,497.72 and Germany’s DAX increased 21.7 points or 0.16% to 13,205.66. On the flip side, UK’s FTSE 100 decreased 12.41 points or 0.16% to 7,713.02.