Benchmarks extend gains in morning session

Indian equity benchmarks extended their gains in morning session on account of buying in frontline blue chip counters tracking positive global cues. The rupee inched up against the dollar at open after banks and exporters increasingly stayed away from the American currency. Foreign Portfolio Investors (FPIs) net sold shares worth Rs 486.32 crore on Friday. On the other hand, Domestic Institutional Investors (DIIs) bought shares worth a net Rs 1,514.03 crore. Traders took some support with a private poll showing that India’s economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending. This suggests that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading. Separately, Union Minister Parshottam Rupala has said 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. Select stocks from commodity chemicals were buzzing with Chemicals Export Promotion Council (CHEMEXCIL) chairman Satish Wagh’s statement that the chemicals industry is expected more than double and touch $300 billion by 2025 from $147 billion now. The chairman added that the industry is also targeting chemical exports of $18 billion by 2020 from $12 billion in FY17.

Moreover, faced with a daunting target of Rs 10.05 lakh crore, the apex decision-making body for direct taxes, CBDT, has asked its field officers to step up efforts and put more focus on better performing zones. In the 2018-19 Budget, the government hiked the direct tax -- which includes personal income tax and corporate tax -- collection target to Rs 10.05 lakh crore from Rs 9.80 lakh crore budgeted initially. Separately, a private report highlighted that India needs to industrialize further and target 25 per cent of GDP pie for manufacturing sector by 2025 in order to achieve double-digit investment growth and create jobs for its swelling labour force. According to the report, increase in labour productivity, growth in investments and overall efficiency of production are the three primary drivers of GDP growth.

Traders were seen buying in Realty, Auto and Industrials sector stocks, while selling was witnessed in IT, TECK and Healthcare sectors stocks. In scrip specific development, Simbhaoli Sugars slipped after the Central Bureau of Investigation registered a case against Ghaziabad-based company on charges of causing a loss of about Rs 110 crore to state-run Oriental Bank of Commerce. Aster DM Healthcare was trading in red after debuting on the exchanges. The healthcare services provider’s issue was oversubscribed 1.3 times on the last day, as per data available on the NSE website.

On the global front, Asian markets were trading mostly in green. China’s manufacturing sector likely posted another month of relatively solid growth in February, despite long Lunar New Year holidays and a tough pollution crackdown which disrupted factory operations. Back home, the BSE Sensex and NSE Nifty were trading above the psychological 34,300 and 10,550 levels respectively. The market breadth on BSE was positive in the ratio of 1548:732, while 130 scrips remained unchanged.

The BSE Sensex is currently trading at 34392.23, up by 250.08 points or 0.73% after trading in a range of 34225.72 and 34435.06. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.64%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Realty up by 2.07%, Auto up by 1.74%, Industrials up by 1.55%, Capital Goods up by 1.52% and Bankex up by 1.07%, while IT down by 0.79%, TECK down by 0.53%, Healthcare down by 0.16% and Consumer Durables down by 0.05% were the only losing indices on BSE.

The top gainers on the Sensex were IndusInd Bank up by 2.87%, Tata Motors up by 2.80%, Tata Motors - DVR up by 2.53%, Adani Ports & Special Economic Zone up by 2.40% and Larsen & Toubro up by 2.08%.

On the flip side, Dr. Reddy’s Lab down by 1.53%, Sun Pharma down by 1.52%, Infosys down by 1.30%, TCS down by 1.17% and Yes Bank down by 1.11% were the top losers.

Meanwhile, New & Renewable Energy Secretary Anand Kumar has expressed confidence that India would achieve renewable energy (RE) target of 175 gigawatt (GW) of installed capacity well before 2022 for which bidding process would be completed on time. He also said that International Solar Alliance (ISA) shall help mobilize enough funds for solar energy projects. He added that over the years the renewable energy has become cheaper and is set to replace conventional energy, which is a healthy development. 

Kumar has pointed out that the country has one of the fastest growing renewable energy programmes in the world. He also said that Prime Minister wants India to emerge as the innovation hub for which they have to start thinking and supporting about the new ideas for renewable sources particularly in solar energy with the objective of making energy available to common man at an affordable prices.

The Secretary further said that the ISA is an excellent idea which helps millions of people to provide universal energy excess. He noted that the ISA is conceived as a coalition of solar resource rich countries to address their special energy needs and to provide a platform to collaborate on addressing the identified gaps through a common, agreed approach. He added that it has the backing of around 121 countries rich in solar energy.

The CNX Nifty is currently trading at 10561.45, up by 70.40 points or 0.67% after trading in a range of 10520.20 and 10578.70. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.86%, IndusInd Bank up by 2.82%, Adani Ports & Special Economic Zone up by 2.13%, Larsen & Toubro up by 2.02% and BPCL up by 1.93%.

On the flip side, Sun Pharma down by 1.43%, Dr. Reddy’s Lab down by 1.34%, Infosys down by 1.31%, TCS down by 1.13% and Yes Bank down by 1.11% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.22 points or 0.07% to 1,862.72, Shanghai Composite increased 25.64 points or 0.78% to 3,314.66, Taiwan Weighted increased 51.31 points or 0.48% to 10,845.86, Hang Seng increased 156.42 points or 0.5% to 31,423.59 and Nikkei 225 increased 286.85 points or 1.31% to 22,179.63.

On the other hand, Jakarta Composite decreased 15.77 points or 0.24% to 6,604.03 and KOSPI Index decreased 2.24 points or 0.09% to 2,449.28.