Benchmarks trade slightly in green in early deals

Indian equity benchmarks are trading marginally in green in early deals as traders took some encouragement with report that India has jumped 13 places in the last one year to earn 130th spot in the latest annual Index of Economic Freedom released by a top American think-tank. In 2017, India with a score of 52.6 points was ranked at 143 among 180 countries, two spots below neighbour Pakistan. Some support also came with report highlighting that FDI inflows have increased by 34% to an average of $10.2 billion quarterly since the NDA-government assumed power in 2014. The report notes that FDI inflows in India have nearly doubled to $42 billion in FY17. However, gains remained capped as traders remained on sidelines ahead of macroeconomic readings on retail inflation and industrial output due today and Infosys’ quarterly earnings scheduled to be released on Friday for clues about near-term direction of markets.

On the global front, Asian markets are trading mostly in red, as investor confidence seen earlier in the week wavered overnight amid geopolitical tensions. The U.S. stocks edged lower on Wednesday amid geopolitical concerns after President Donald Trump warned Russia get ready for missiles being launched at Syria.

Back home, banking stocks remained in focus after the Reserve Bank has ruled out any relaxation in bad loan rules, saying the tough norms will discipline borrowers and prevent banks from pushing distressed loans under the carpet. In scrip specific developments, Bharat Forge advanced on bagging export orders in Protected Vehicles segment and Tata Motors edged higher on reporting 18% growth in global wholesales in March.

The BSE Sensex is currently trading at 33996.21, up by 55.77 points or 0.16% after trading in a range of 33924.88 and 34005.03. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.15%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were IT up by 2.00%, TECK up by 1.63%, Consumer Durables up by 0.70%, Consumer Discretionary Goods & Services up by 0.24% and Auto was up by 0.23%, while Metal down by 0.74%, Oil & Gas down by 0.41%, Basic Materials down by 0.39%, PSU down by 0.32% and Realty was down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.55%, Infosys up by 2.23%, Wipro up by 1.35%, ICICI Bank up by 0.99% and Tata Motors up by 0.76%. On the flip side, Dr. Reddys Lab down by 1.65%, Tata Steel down by 0.90%, SBI down by 0.89%, Adani Ports down by 0.83% and Sun Pharma down by 0.81% were the top losers.

Meanwhile, an American conservative public policy think tank, the Heritage Foundation in its latest annual Index of Economic Freedom 2018 has placed Indian economy at 130th position with economic freedom score of 54.5. The country has jumped up 13 places in the last one year. The country in 2017 was ranked 143rd among 180 countries with a score of 52.6 points. According to the Index, India’s overall score has increased by 1.9 points, led by improvements in judicial effectiveness, business freedom, government integrity, and fiscal health. The country is ranked 30th among 43 countries in the Asia-Pacific region, and its overall score is below the regional and world averages. It noted that the country is developing into an open-market economy and said that traces of its past autarkic policies still remain.

The report added that growth accelerated, with economic liberalisation measures, including industrial deregulation, privatisation of state-owned enterprises and reduced controls on foreign trade and investment, which began in the early 1990s. Recently, the government reformed one of its more opaque operational practices to make the auctioning of rights to exploit state-owned resources more transparent. However, it also mentioned that corruption, underdeveloped infrastructure, a restrictive and burdensome regulatory environment, and poor financial and budget management continue to undermine overall development.

The Heritage Foundation further said that the nation’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Although land titles in some urban and nearly all rural areas remain unclear, real property rights in large metropolitan areas are generally well enforced. It added that the judiciary is independent, but the Indian courts are understaffed and lack the technology necessary to clear an enormous backlog. Observing that non-tariff barriers significantly impede trade, it said the government’s openness to foreign investment is below average.

The CNX Nifty is currently trading at 10422.20, up by 5.05 points or 0.05% after trading in a range of 10395.25 and 10425.20. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were TCS up by 2.72%, Infosys up by 2.20%, Tech Mahindra up by 1.60%, Wipro up by 1.51% and HCL Tech up by 1.42%. On the flip side, Dr. Reddys Lab down by 1.69%, BPCL down by 1.58%, HPCL down by 1.38%, Vedanta down by 1.11% and Ultratech Cement down by 1.09% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 69.86 points or 0.23% to 30,827.85, Jakarta Composite declined 52.94 points or 0.83% to 6,308.00, Nikkei 225 slipped 47.91 points or 0.22% to 21,639.19, Taiwan Weighted shed 46.99 points or 0.43% to 10,927.03, Shanghai Composite dropped 19.11 points or 0.6% to 3,188.97 and FTSE Bursa Malaysia KLCI was down by 3.14 points or 0.17% to 1,866.75.

On the flip side, KOSPI Index was up by 6.83 points or 0.28% to 2,451.05.