Benchmarks trade in fine fettle in early deals

Indian equity benchmarks made an optimistic start to the new F&O series and are trading in fine fettle in early deals on Friday, with frontline gauges recapturing their crucial 33,900 (Sensex) and 10,400 (Nifty) levels. Sentiments remained upbeat with Niti Aayog Vice Chairman Rajiv Kumar’s statement that India will emerge as a model for the rest of the world once it completes economic, political and social transitions. He highlighted India’s development process, outlined country’s experiences since Independence and laid out a future vision for achieving a New India by 2022. Traders also took some encouragement with CRISIL’s report stating that asset quality of microfinance institutions (MFI), including small finance banks, has come out of the impact of demonetisation and stabilised since June 2017. The report added that asset quality has improved, as evidenced by reducing portfolio delinquencies and cumulative collection efficiencies have risen to over 99 percent for disbursements since April 2017.

Global cues too remained supportive with all the Asian counters trading in green at this point of time, as comments from a US Federal Reserve official eased worries that the central bank might raise rates more aggressively this year. The US markets ended mostly in green on Thursday, with traders taking some support with Labor Department unexpectedly showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended February 17th.

Back home, banking stocks remained on buyers’ radar with Fitch rating stating that the RBI’s new norms for overhauling the mechanism to deal with bad loans is aimed at speeding up the NPA resolution, but would undermine the banking sector earnings in the near-term. In scrip specific developments, Adani Transmission rose on receiving LOI from PFC Consulting and Dilip Buildcon surged on receiving Letter of Award from Ircon International.

The BSE Sensex is currently trading at 33911.13, up by 91.63 points or 0.27% after trading in a range of 33832.00 and 33960.31. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.78%, while Small cap index was up by 0.76%.

The top gaining sectoral index on the BSE were Healthcare up by 1.42%, Telecom up by 1.31%, Basic Materials up by 0.76%, Metal up by 0.62% and Bankex was up by 0.53%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Sun Pharma up by 3.14%, Bharti Airtel up by 2.24%, Tata Steel up by 2.01%, Dr. Reddys Lab up by 1.46% and Yes Bank was up by 1.19%. On the flip side, Mahindra & Mahindra down by 0.77%, Coal India down by 0.74%, Asian Paints down by 0.68%, TCS down by 0.41% and Hero MotoCorp was down by 0.35% were the top losers.

Meanwhile, with successful completion of three transitions such as economic, political and social, the Niti Aayog vice-chairman Rajiv Kumar has said India will emerge as a model for the rest of the world.  He also said that India is the only country in the World which chose to undertake these three transitions simultaneously. He added that if there will be shift from public-private partnership (PPP) to public-private-personal partnership (PPPP), development will become a mass movement.

Kumar highlighted India’s development process, outlined country’s experiences since Independence and laid out a future vision for achieving a ‘New India’ by 2022. He articulated upon insight into creation of space and ecosystem for dynamic entrepreneurship. For 2022, he noted that there is a need to have a resolution to make India free from poverty, dirt and squalor, corruption, terrorism, casteism and communalism.

Talking about future growth prospects, Niti Aayog vice-chairman has said that Indian economy will need to take into account new and unique challenges and opportunities such as the fourth industrial revolution. He further said that India’s democratic dividend in shifting from competitive populism to good governance and the changing global landscape.

The CNX Nifty is currently trading at 10420.55, up by 37.85 points or 0.36% after trading in a range of 10396.65 and 10426.40. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 3.60%, Aurobindo Pharma up by 2.45%, Tata Steel up by 2.42%, Bharti Airtel up by 2.32% and Lupin was up by 1.64%. On the flip side, GAIL India down by 1.53%, Eicher Motors down by 1.11%, HPCL down by 0.94%, Asian Paints down by 0.86% and Mahindra & Mahindra was down by 0.75% were the top losers.

All the Asian market are trading in green; Shanghai Composite rose 3.09 points or 0.09% to 3,271.65, FTSE Bursa Malaysia KLCI gained 3.83 points or 0.21% to 1,858.90, KOSPI Index surged 27.94 points or 1.16% to 2,442.22, Jakarta Composite increased 46.07 points or 0.7% to 6,639.13, Taiwan Weighted jumped 95.46 points or 0.9% to 10,757.84, Nikkei 225 added 118.71 points or 0.55% to 21,855.15 and Hang Seng up by 260.93 points or 0.84% to 31,226.61.