Benchmarks trade with marginal gains in early deals

Paring most of their initial gains, Indian equity benchmarks have turned flat but somehow managing to keep their head above water in early deals on Tuesday. Traders are getting some support with report that India’s economic recovery is expected to have gathered momentum as economists expect India’s GDP to grow 6.9 percent in the December quarter, the fastest pace in a year and up from 6.3 percent in July-September quarter, on the back of increased spending by consumers, businesses and the government. Traders also took some encouragement with economic think-tank NCAER’s report that the Indian economy is projected to grow at 6.7 per cent in the current financial year and 7.5 per cent in 2018-19. However, gains remained capped on report that investments in the domestic capital market through participatory notes (P-notes) plunged to a nearly eight-and-a-half-year low of Rs 1.19 lakh crore in January-end amid stringent norms put in place by regulator SEBI to check misuse.

On the global front, Asian markets are trading mostly in green at this point of time and held near three-week highs, thanks to higher oil prices and easing U.S. borrowing costs. The Japanese stock market is notably higher on Tuesday, extending gains from the previous session as yen weakened. The U.S. stocks rose sharply on Monday, as treasury yields pulled back further partly in reaction to dovish comments by St. Louis Federal Reserve President James Bullard warning against aggressive interest rate hikes not supported by incoming data.

Back home, some support come with report that the government plans to cut red tape and ease rules for foreign portfolio investors (FPI), as it seeks to attract more investments into Asia’s third-largest economy. In scrip specific development, M&M surged on collaborating with LG Chem for Li-ion battery technology, while Jain Irrigation Systems gains with arm acquiring 100% stake in Belgium based company.

The BSE Sensex is currently trading at 34459.28, up by 13.53 points or 0.04% after trading in a range of 34422.70 and 34610.79. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.14%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.13%, Energy up by 1.00%, Telecom up by 0.74%, Consumer Durables up by 0.73% and Auto up was by 0.43%, while Bankex down by 0.72%, Realty down by 0.71%, Metal down by 0.17%, PSU down by 0.15% and Basic Materials was down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.37%, ONGC up by 1.34%, Reliance Industries up by 1.27%, TCS up by 1.26% and Bharti Airtel was up by 1.23%. On the flip side, Kotak Mahindra Bank down by 1.27%, ICICI Bank down by 1.21%, SBI down by 1.11%, Axis Bank down by 1.00% and Adani Ports was down by 0.74% were the top losers.

Meanwhile, India’s economic think-tank, National Council of Applied Economic Research (NCAER) has pegged India’s Gross Domestic Product (GDP) growth at 7.5 percent for the next fiscal year 2018-19 and added that in the current fiscal year (2017-18) Indian economy will grow at 6.7 percent. The figures are in line with the growth projections in current year’s Economic Survey, which said India is likely to clock 7-7.5 percent growth in 2018-19, up from 6.75 percent in the current fiscal.

NCAER has projected that in 2017-18, the real agriculture Gross Value Added (GVA) will grow at 1.0 percent, real industry GVA at 5.2 percent, and real services GVA at 8.0 percent. It also said the wholesale price index (WPI) inflation is forecasted at 6.4 percent for FY18. Besides, the growth rates in exports and imports, in dollar terms, are estimated at 12.8 percent and 24.8 percent, respectively. Moreover, current account balance and central fiscal deficit, as percentages of GDP, are projected at 2.0 percent and 3.5 percent, respectively for FY18.

The country’s economic think-tank said that in agriculture sector, the estimated output of major crops based on area and output equations, suggests that the output of kharif foodgrains is expected to be 139.8-141.2 million tonnes. The output of rabi foodgrains is also expected to remain close to last year’s output of 137 million tonnes. Further, on the Reserves Bank of India’s (RBI’s) monetary policy front, it said that based on the current and evolving macroeconomic situation of the economy, the RBI is expected to continue with the neutral liquidity stance in the coming months.

The CNX Nifty is currently trading at 10591.60, up by 9.00 points or 0.09% after trading in a range of 10572.65 and 10631.65. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.05%, ONGC up by 1.68%, TCS up by 1.43%, Yes Bank up by 1.33% and Bharti Airtel was up by 1.28%. On the flip side, Ambuja Cement down by 3.94%, Kotak Mahindra Bank down by 1.19%, ICICI Bank down by 1.10%, Zee Entertainment down by 0.93% and Axis Bank was down by 0.86% were the top losers.

Asian market are trading mostly in green; KOSPI Index rose 7.71 points or 0.31% to 2,465.36, FTSE Bursa Malaysia KLCI gained 9.78 points or 0.53% to 1,869.86, Jakarta Composite added 26.62 points or 0.41% to 6,581.29, Taiwan Weighted surged 43.48 points or 0.4% to 10,880.18, Hang Seng up by 45.59 points or 0.14% to 31,544.19 and Nikkei 225 advanced by 267.76 points or 1.21% to 22,421.39.

On the side flip, Shanghai Composite down by 30.34 points or 0.91% to 3,299.24.