Markets continue to trade with traction

Key domestic gauges are trading with traction in morning deals with Sensex and Nifty recapturing their crucial 33,100 and 10,150 level, respectively. Appreciation in rupee coupled with increased buying by domestic institutional investors (DIIs) and retailer investors had a positive impact on the markets. Investor sentiment was buoyed after the government announced borrowing of Rs 2.88 lakh crore in the April-September period of 2018-19, lower than Rs 3.72 lakh crore it had borrowed in the first half of the current fiscal, and introduce bonds linked to CPI or retail inflation. Traders may also drew some support with report that more than 1,200 new foreign investors were registered with SEBI in the first 10 months of the ongoing fiscal, primarily due to their continued interest in the Indian capital markets. Meanwhile, Chief Economic Adviser Arvind Subramanian has said the task force on direct tax reforms will submit its report in the next 4-5 months.

Asian share markets rose sharply on Tuesday, as reports of behind-the-scenes talks between the United States and China rekindled hopes a damaging trade war could be averted, in turn sapping the strength of the dollar and yen. Back home, the investors now are looking forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month. Meanwhile, Bandhan Bank has made a strong debut at the bourses on Tuesday. The stocks listed at Rs 499, a 33% premium against its issue price of Rs 375 per share on the National Stock Exchange (NSE).

The BSE Sensex is currently trading at 33164.94, up by 98.53 points or 0.30% after trading in a range of 33131.50 and 33311.31. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.87%, while Small cap index up by 1.26%.

The top gaining sectoral indices on the BSE were Metal up by 1.11%, Healthcare up by 0.95%, Bankex up by 0.94%, Basic Materials up by 0.91% and Industrials was up by 0.79%, while Telecom down by 0.93% was the lone losing index on BSE.

The top gainers on the Sensex were Axis Bank up by 2.07%, ICICI Bank up by 1.99%, Tata Steel up by 1.78%, Kotak Mahindra Bank up by 1.42% and SBI up by 1.32%. On the flip side, Bharti Airtel down by 1.89%, Hero MotoCorp down by 1.14%, Mahindra & Mahindra down by 0.65%, NTPC down by 0.59% and Bajaj Auto down by 0.56% were the top losers.

Meanwhile, amid fears of a global trade war after protectionism measures imposed by the US, Commerce and Industry Minister Suresh Prabhu has said that India needs to explore ways to improve exports. He also noted that the world is facing serious challenges with the US taking very strong measures against all its major trading partners including China.

Besides, Prabhu said ‘if any country takes a unilateral action, we will definitely take note of it and we will deal with it appropriately’. He also said that India is a firm believer in a rule-based, transparent and participatory trading system and recently it has invited key World Trade Organization (WTO) member countries to discuss ways to reinvigorate the global trading body.

The Minister further urged all to take initiatives to promote exports, in line with the government’s focus on promoting shipments. He also said that they are trying to explore new markets and products by doing market research. He added that India is also meeting leaders of some African countries to promote exports in the region.
The CNX Nifty is currently trading at 10161.05, up by 30.40 points or 0.30% after trading in a range of 10154.20 and 10205.50. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 2.48%, Indian Oil Corporation up by 2.36%, Bajaj Finance up by 2.20%, HPCL up by 2.01% and Axis Bank up by 2.01%. On the flip side, Bharti Infratel down by 2.06%, Bharti Airtel down by 1.99%, GAIL India down by 1.49%, Hero MotoCorp down by 1.11% and Bajaj Auto down by 1.05% were the top losers.

All the Asian markets are trading in green; FTSE Bursa Malaysia KLCI rose 4.73 points or 0.25% to 1,864.64, KOSPI Index increased 12.95 points or 0.53% to 2,450.03, Shanghai Composite jumped 30.3 points or 0.97% to 3,164.02, Jakarta Composite gained 36.74 points or 0.59% to 6,236.91, Taiwan Weighted surged 119.25 points or 1.1% to 10,959.30, Hang Seng added 277.69 points or 0.91% to 30,826.46 and Nikkei 225 was up by 495.13 points or 2.38% to 21,261.23.