Markets hover near day’s high ahead of Economic Survey

Continuing their bullish trend, Key Indian benchmarks were hovering near their intraday high points in late morning session, ahead of the government’s economic survey due later in the day. Traders widened their bets following beginning of the February series in the derivatives segment. Sentiments were upbeat with the report that Goods and services tax (GST) receipts rose in December 2017, reversing the decline seen in the previous two months. The total collections for December rose to Rs 86,703 crore. Adding some optimism, the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) has jumped to a six-month high of over Rs 1.5 lakh crore at the end of December, despite stringent norms put in place by markets regulator Securities and Exchange Board of India (SEBI) to check their misuse. Besides, higher broader markets along with persistent buying in IT, Auto and Metal stocks, too aided the sentiments. The market participants were taking encouragement with Union Finance Minister Arun Jaitley’s statement that India can be among top 50 on World Bank’s ease of doing business index, if various machineries, including the tax department, make concerted efforts to improve the three laggard parameters. Meanwhile, the rally in the foreign exchange reserves continued for the fourth week in a row, and scaled a new peak at $414.784 billion in the week to January 19, helped by rise in foreign currency assets.  The Reserve Bank data showed that the reserves rose by $959.1 million to touch new peak during the reporting week.

On the global front, Asian markets were trading mostly in green, as investors’ sentiments were bolstered by solid corporate earnings news and economic data as well as the rally in crude oil prices. Back home, in scrip specific development, Vikas WSP traded jubilantly after the company received an export order for Rs 92.37 crore of newly developed Guar Gum Thermogel-25 for ultra-fermented and sausage roll applications, to bind free water for a longer period thereby enhancing the mouthfeel naturally, from MNC customers replacing high priced Locust Bean Gum.

The BSE Sensex is currently trading at 36401.82, up by 351.38 points or 0.97% after trading in a range of 36093.36 and 36410.60. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index was up by 0.07%.

The top gaining sectoral indices on the BSE were IT up by 1.82%, Auto up by 1.64%, Metal up by 1.55%, TECK up by 1.30% and Bankex up by 0.88%, while Telecom down by 1.92%, FMCG down by 0.54%, Oil & Gas down by 0.49%, Utilities down by 0.43% and Realty down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.04%, TCS up by 2.96%, Tata Steel up by 2.34%, HDFC up by 2.13% and Kotak Mahindra Bank up by 2.10%. On the flip side, Dr. Reddy’s Lab down by 4.40%, Bharti Airtel down by 2.77%, ITC down by 1.67%, ONGC down by 1.20% and Yes Bank down by 0.66% were the top losers.

Meanwhile, in a massive relief to Indian exporters, the government has raised the all industry rates of duty drawback on 102 export items. Besides, the finance ministry noted that as a step towards more efficient input tax neutralisation on exports, after considering various representations from trade and industry, the government has enhanced the duty drawback rates.

The ministry has pointed out that the move will help address the concerns of these export sectors and make country’s exports more competitive in global market. It indicated that the export items that will now enjoy a higher duty drawback mainly include marine and seafood products, automobile tyres and bicycle tyres/tubes, leather and articles of leather, yarn and fabric of wool, glass handicrafts and bicycles. It added that the enhanced rates of duty drawback will be effective from January 25.

Commenting on the move, the Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that it is a welcome move and this would provide some competitiveness to Indian exporters in global market. He also said that duty drawback by and large has been enhanced in most of the items except for chemical items where there is some reduction.

The CNX Nifty is currently trading at 11159.30, up by 89.65 points or 0.81% after trading in a range of 11075.95 and 11161.00. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 4.09%, Maruti Suzuki up by 4.03%, TCS up by 3.00%, Indiabulls Housing Finance up by 2.82% and Tata Steel up by 2.33%. On the flip side, Dr. Reddy’s Lab down by 4.62%, GAIL India down by 2.98%, Bharti Airtel down by 2.76%, ITC down by 1.83% and Lupin down by 1.65% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 9.88 points or 0.53% to 1,863.80, Nikkei 225 increased 18.24 points or 0.08% to 23,650.12, KOSPI Index increased 24.25 points or 0.94% to 2,599.01 and Taiwan Weighted increased 54.56 points or 0.49% to 11,201.66.

On the flip side, Hang Seng decreased 25.72 points or 0.08% to 33,128.40, Jakarta Composite decreased 10.89 points or 0.16% to 6,649.73 and Shanghai Composite decreased 9.54 points or 0.27% to 3,548.59.