Indian markets remain in positive territory

Domestic equity benchmarks continued their trade in positive territory in late morning session, taking cues from Asian markets. Traders remained optimistic on easing concerns about a sharp rise in US interest rates and buying by investors ahead of earnings season. Investors took note of a report from Tax department which stated that the Mumbai zone of the Central GST Commissionerate has mopped up revenue of Rs 72,509 crore till February this year. The Mumbai-South zone collected Rs 15,351 crore, while Mumbai-Central’s revenue stood at Rs 13,812 crore in the eight months. The collection from Mumbai-West zone was Rs 6,581 crore in the same period. Market-men also took some support from the Finance Minister Arun Jaitley’s statement that Indian economy, which saw temporary disruptions caused by demonetisation and the roll-out of the goods and services tax (GST) over the past two years, will see consolidation in the current fiscal. Insolvency and Bankruptcy Code and new income tax regulations are contributing to a better investment climate. Sentiments remained up-beat with a private report stating that India is aiming to become a $10-trillion economy by 2030, from roughly $2.5 trillion now.

On the global front, Asian markets were trading in green, as US stock futures soothed sentiments even as US President Donald Trump kept up his twitter war with China over trade just a couple of days before Chinese President Xi Jinping gives a keynote speech. Back on domestic turf, on the sectorial indices, FMCG stocks remained in limelight after a private report stated that FMCG companies, should do well, now that supply chains are running smoothly; the company would benefit from GST credit. The top lines should grow, it could be about 15% for India - given prices of most commodities are fairly stable and companies have been able to push through volumes. In scrip specific development, RPP Infra Projects strengthened on bagging order worth Rs 138.2 crore. Besides, JSPL gained on posting highest ever monthly crude steel production in March 2018.

The BSE Sensex is currently trading at 33751.13, up by 124.16 points or 0.37% after trading in a range of 33578.91 and 33807.93. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained by 0.26%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.86%, Oil & Gas up by 1.31%, Energy up by 1.01%, Consumer Disc up by 0.70% and Realty was up by 0.61%, while TECK down by 0.46%, IT down by 0.44%, Telecom down by 0.13% and Utilities was down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.99%, Asian Paints up by 1.38%, Axis Bank up by 1.35%, Mahindra & Mahindra up by 1.33% and Kotak Mahindra Bank was up by 1.18%. On the flip side, Tata Motors down by 1.47%, Infosys down by 1.39%, Tata Motors - DVR down by 1.36%, ICICI Bank down by 1.07% and Bharti Airtel was down by 0.49% were the top losers.

Meanwhile, the agriculture ministry will soon move a Cabinet note to ensure farmers get the minimum support price (MSP). The note will seek the Cabinet approval for a new policy that aims to rope in both states and private firms in procurement of other crops than wheat and paddy for ensuring support price. The objective of the proposed policy is to improve the speed of response and effectiveness of procurement in cases when prices drop below the MSP. The policy also aims to give liberty to States to implement either one of the models of procurement.

The ministry has proposed three models -- Market Assurance Scheme (MAS), Price Deficiency Procurement Scheme (PDPS) and Private Procurement and Stockists Scheme. In case of MAS, it is to be implemented by state governments who can take immediate decisions on the basis of local conditions, to enter the market and begin procurement through their own state agencies or any other private agency authorised by states. States will be responsible for procurement and liquidation of the procured commodity. They would create a corpus fund for this purpose and make all logistics arrangements to handle the procurement. The central government will compensate the operational loss, if any, on value of MSP, up to a maximum 30-40%.

Under the PDS scheme, if the sale price is below a model price then the farmers would be compensated to the difference between the MSP and actual price, subject to certain conditions and ceiling. The MAS and PDPS are primarily government-owned and driven schemes. The central government wants to bring in private sector players to supplement its schemes. Therefore the ministry, in the new policy, has proposed engagement of private sector in MSP-linked procurement through a transparent e-market platform. States will be allowed to empanel private firms via a transparent bidding for purchase of farm produce when prices fall below the MSP. The private firms will be given tax incentive and a commission.

The CNX Nifty is currently trading at 10372.30, up by 40.70 points or 0.39% after trading in a range of 10328.50 and 10391.25. There were 32 stocks advancing against 16 stocks declining on the index, while 2 stocks remained unchanged.

The top gainers on Nifty were HPCL up by 3.52%, BPCL up by 3.24%, Titan Co up by 2.91%, Indian Oil Corporation up by 2.75% and Hindalco was up by 2.22%. On the flip side, Tata Motors down by 1.55%, Infosys down by 1.20%, ICICI Bank down by 1.05%, GAIL India down by 0.99% and Zee Entertainment was down by 0.68% were the top losers.

All the Asian markets were trading in green; Shanghai Composite surged 6.69 points or 0.21% to 3,137.80, FTSE Bursa Malaysia KLCI gained 10.69 points or 0.58% to 1,847.70, KOSPI Index soared 11.26 points or 0.46% to 2,440.84, Jakarta Composite rose by 31.13 points or 0.5% to 6,206.19, Taiwan Weighted strengthened 72 points or 0.67% to 10,893.53, Nikkei 225 advanced 117.5 points or 0.54% to 21,685.02 and Hang Seng was up by 384.68 points or 1.29% to 30,229.62.