Markets continue to trade in green

Key Indian benchmarks added some gains to continue trading in green in late morning session, supported by buying in Energy, IT and TECK stocks. Traders were taking some encouragement with the private report stating that India will overtake China to be the fastest growing large economy in 2018 and the country’s equity market will become the fifth largest in the world. Sentiments remained optimistic with a report enlightening that a greater proportion of provident fund savings could be headed for the stock market with shares rising to successive records in past weeks. Such a move could more than double the provident fund money invested in exchange-traded funds (ETFs) over time. The market participants took note of Commerce and Industry Minister Suresh Prabhu’s statement that regulation on businesses should be kept to a minimum and they should not stifle the possibilities of investment, in order to attract more foreign direct investment (FDI) and spur domestic financing.

On the global front, Asian markets were trading mixed, as investors kept an eye on political developments in the US after a government shutdown began last week. Back home, in scrip specific development, Grasim Industries traded higher after the company received green nod for expanding the production of manmade fibre VSF at Bharuch, Gujarat that would entail an investment of Rs 2,560 crore.

The BSE Sensex is currently trading at 35620.56, up by 108.98 points or 0.31% after trading in a range of 35544.68 and 35700.72. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.05%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Energy up by 1.27%, IT up by 0.66%, TECK up by 0.32%, Industrials up by 0.30% and Realty up by 0.28%, while Telecom down by 1.10%, Metal down by 0.88%, Utilities down by 0.70%, PSU down by 0.43% and Power down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 3.82%, Reliance Industries up by 2.31%, TCS up by 1.91%, Kotak Mahindra Bank up by 1.32% and Yes Bank up by 1.32%. On the flip side, Asian Paints down by 1.96%, Tata Motors - DVR down by 1.60%, ICICI Bank down by 1.34%, Bharti Airtel down by 1.23% and Wipro down by 1.14% were the top losers.

Meanwhile, in order to attract more foreign direct investment (FDI) and spur domestic financing, Commerce and Industry Minister Suresh Prabhu has expressed need that regulation on businesses should be kept to a minimum and they should not stifle the possibilities of investment. He noted that a committee had been set up under the chairmanship of the Secretary, Department of Industrial Policy and Promotion, to look at regulatory issues.

Prabhu said that the government cannot run industry but it is working on a new industrial policy to reduce regulations and promoting modernisation of existing industry and this policy will also help to encourage new and emerging industries, even those which are not seen today. Besides, he noted that the government is also drawing up strategies to boost exports and the core focus areas are promotion of services, value-addition in goods, focus on agriculture, improving standards, and logistics. He said that focus will also be on improving the ease of doing business across these sectors.

Highlighting goods and services tax (GST) as the key driver for the improvement in ease of doing business ranking, Suresh Prabhu said that the new tax regime is a great positive step in the direction of bringing transparency and greater reliability. Commerce Minister also expressed need to re-strategise the country’s global trade and mentioned the government’s efforts to reduce India’s logistics costs too. He said that Prime Minister Narendra Modi had taken the decision to create a separate logistics division within the Ministry of Commerce and Industry.

The CNX Nifty is currently trading at 10905.60, up by 10.90 points or 0.10% after trading in a range of 10881.40 and 10929.85. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.74%, Reliance Industries up by 2.16%, TCS up by 1.69%, Indiabulls Housing Finance up by 1.54% and UPL up by 1.45%. On the flip side, HPCL down by 3.39%, GAIL India down by 3.18%, Hindalco down by 2.03%, BPCL down by 1.90% and Vedanta down by 1.70% were the top losers.

Asian markets were trading mixed; Shanghai Composite increased 3.51 points or 0.1% to 3,491.37, Jakarta Composite increased 20.73 points or 0.32% to 6,511.63, Taiwan Weighted increased 80.61 points or 0.72% to 11,231.46 and Hang Seng increased 101.73 points or 0.32% to 32,356.62.

On the flip side, Nikkei 225 decreased 25.91 points or 0.11% to 23,782.15, KOSPI Index decreased 17.23 points or 0.68% to 2,503.03 and FTSE Bursa Malaysia KLCI decreased 1.6 points or 0.09% to 1,827.23.