Benchmarks make optimistic start on firm global cues

Buoyed by firm global cues, Indian equity benchmarks made an optimistic start and are trading in fine fettle in early deals on Monday, with frontline gauges recapturing their crucial 34,300 (Sensex) and 10,550 (Nifty) levels. Traders got some support with Union Minister Parshottam Rupala’s statement that the Centre was making concerted efforts to double the income of farmers by 2022 and asked scientists, and others concerned to tackle the challenges being faced by the agriculture sector. He opined that scientists, environmental and agricultural experts must have a global outlook and local approach to combat the challenges in agricultural and environmental sectors. Market participants shrugged off report that overseas investment by Indian companies fell by nearly 70 per cent to $866 million in January this year.

Global cues remained supportive with Asian markets trading mostly in green after U.S. stock indexes notched gains of more than a percent in the last session. Japanese Nikkei edged higher as major exporters gained on a weaker yen. The US markets rallied on Friday as interest rates slipped further from a four-year high, pushing the major indexes higher for the week.

Back home, stocks related to infrastructure sector remained buzzing after railway and coal minister Piyush Goyal said that the government is thinking of 360 degree solutions in terms of setting things in order for infrastructure sector. He added that the government has moved the needle from century old railway to connect with the most modern technology but also look into future. Mining stocks remained on buyers’ radar after the government opened up the coal sector to private players. However, software stocks remained under pressure after the Trump administration made the H-1B visa-approval process even harder for Indian techies.

The BSE Sensex is currently trading at 34330.06, up by 187.91 points or 0.55% after trading in a range of 34225.72 and 34341.15. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.49%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Realty up by 1.95%, Auto up by 1.37%, Metal up by 1.22%, Industrials up by 1.12% and Basic Materials was up by 1.05%, while IT down by 0.38%, TECK down by 0.17% and Healthcare was down by 0.09% were the few losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 2.19%, Tata Motors up by 2.15%, Tata Motors - DVR up by 1.99%, Bajaj Auto up by 1.76% and Indusind Bank was up by 1.59%. On the flip side, Dr. Reddys Lab down by 1.90%, Sun Pharma down by 1.60%, TCS down by 0.98%, Infosys down by 0.56% and NTPC was down by 0.28% were the top losers.

Meanwhile, India Inc’s investment in their overseas joint-ventures/wholly owned firms declined by 69.41 percent to $866 million in January 2018, as compared $2,831.21 million in the same month a year ago. Outward foreign direct investment by Indian firms in December 2017 stood at $1,858.52 million.

According to the Reserve Bank of India’s data, the $866 million worth of investment during January 2018 was in the form of equity, loan and guarantee issued by the Indian firms. Of the total $866 million, the highest portion of $385.70 million was through equity infusion, followed by $192.38 million was in the form of loan and $287.92 million was part of guarantee issued.

Major investors include CG Power and Industrial Solutions invested $88.74 million in restaurants and hotel business, General Insurance Corporation $49.31 million and Satori Partners $23.42 million.

The CNX Nifty is currently trading at 10555.45, up by 64.40 points or 0.61% after trading in a range of 10520.20 and 10563.20. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.25%, Adani Ports up by 1.93%, Bajaj Auto up by 1.89%, Maruti Suzuki up by 1.68% and Indusind Bank was up by 1.56%. On the flip side, Dr. Reddys Lab down by 1.76%, Sun Pharma down by 1.47%, TCS down by 1.07%, NTPC down by 0.70% and Infosys was down by 0.55% were the top losers.

Asia markets are trading mostly in green; FTSE Bursa Malaysia KLCI rose 0.74 points or 0.04% to 1,862.24, KOSPI Index gained 2.07 points or 0.08% to 2,453.59, Shanghai Composite jumped 23.74 points or 0.72% to 3,312.77, Taiwan Weighted added 70.55 points or 0.65% to 10,865.10, Hang Seng surged by 191.98 points or 0.61% to 31,459.15 and Nikkei 225 up by 223.03 points or 1.02% to 22,115.81.

On the side flip, Jakarta Composite declined 14.51 points or 0.22% to 6,605.29.