Benchmarks trade in fine fettle; Sensex reclaims 33,900 mark

Indian equity benchmarks made an optimistic start and are trading in fine fettle in early deals on Tuesday with frontline gauges recapturing their crucial 33,900 (Sensex) and 10,400 (Nifty) levels, as traders bet for improved corporate earnings and acceleration in economic growth, with readings on industrial production and retail inflation due on Thursday. Traders took some encouragement with Commerce and Industry Minister Suresh Prabhu’s statement that India can benefit from the ongoing challenges in global trade provided it plays its cards well. He said, “We are passing through a challenging but an opportune time. If we play our cards properly, and that is what we are trying to do we can actually benefit from it by creating an opportunity around the issues that are happening globally and we have no choice but to respond in a positive manner”.

Global cues too remained supportive with Asian markets rallying at this point of time as investors digested comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy. U.S. stocks failed to sustain early gains and ended with marginal gains on Monday amid lingering concerns about a potential trade war between the U.S. and China.

Back home, investors continued to take some support from Minister for Finance and Corporate Affairs, Arun Jaitley’s statement that the coming financial year will see the Indian economy becoming more robust. He said, reforms such as GST, Insolvency and Bankruptcy Code and new income tax regulations are contributing to a better investment climate. In scrip specific developments, Nitesh Estates surged on receiving BDA’s approval for Nitesh Virgin Island project and Power Grid edged higher on bagging consultancy contract from Power Grid Company of Bangladesh.

The BSE Sensex is currently trading at 33913.87, up by 125.33 points or 0.37% after trading in a range of 33866.98 and 33945.37. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.43%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were Metal up by 2.01%, Capital Goods up by 1.09%, Basic Materials up by 1.07%, Industrials up by 0.85% and Bankex was up by 0.84%, while Oil & Gas down by 0.33% and Auto was down by 0.16% were the only losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.69%, Adani Ports up by 3.03%, ICICI Bank up by 2.62%, Tata Steel up by 1.59% and Larsen & Toubro up by 1.36%. On the flip side, Wipro down by 1.19%, Mahindra & Mahindra down by 1.08%, Hero MotoCorp down by 0.75%, HDFC Bank down by 0.65% and HDFC down by 0.36% were the top losers.

Meanwhile, amid fears sparked by the ongoing crises in global trade, Commerce and Industry Minister Suresh Prabhu has expressed hopes that India can benefit from the ongoing challenges in global trade provided it makes the right moves. He added that some countries are taking steps which are testing the entire global trading system. His statement came in the wake of steadily escalating tensions between the world’s two largest economies -- China and US. The decision of the US to impose duties on certain steel and aluminium products besides hiking tariffs against Chinese goods has triggered a global trade war, with China retaliating to the move.

Prabhu said “We are passing through a challenging but an opportune time. If we play our cards properly, and that is what we are trying to do, we can actually benefit from it by creating an opportunity around the issues that are happening globally. We have no choice but to respond in a positive manner”. He also said that the country must be ready to not only to face the challenge but also make that into an opportunity.

Talking about government initiatives, the Minister said that the Indian government is taking steps to boost exports, industrial growth and manufacturing activities. He also said that they are looking at a strategy to work multi-laterally as well as bilaterally to get greater market access of domestic products and services and boost India's exports. On economic growth front, he said that the Indian economy is growing at a faster pace, despite the global situation and would reach $5 trillion in the coming years.

The CNX Nifty is currently trading at 10420.35, up by 41.00 points or 0.40% after trading in a range of 10402.90 and 10424.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.70%, Axis Bank up by 3.57%, Adani Ports up by 3.42%, ICICI Bank up by 2.99% and Vedanta up by 2.33%. On the flip side, BPCL down by 1.77%, HPCL down by 1.43%, Mahindra & Mahindra down by 1.10%, Hero MotoCorp down by 1.09% and Wipro down by 1.00% were the top losers.

All the Asian markets are trading in green; FTSE Bursa Malaysia KLCI gained 4.12 points or 0.22% to 1,853.83, KOSPI Index rose 4.19 points or 0.17% to 2,448.27, Shanghai Composite surged 15.96 points or 0.51% to 3,154.26, Jakarta Composite increased 28.93 points or 0.46% to 6,275.06, Taiwan Weighted jumped 55.81 points or 0.51% to 10,949.34, Nikkei 225 added 149.64 points or 0.69% to 21,827.90 and Hang Seng up by 344.87 points or 1.14% to 30,574.45.