Bourses continue to trade in green territory

Indian benchmark indices continued to trade in green territory in early afternoon session, on buying by funds and retail investors despite weak trend in Asian markets. Sentiments on the street remained optimistic 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 the 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 further noted that FDI inflows in India have nearly doubled to $42 billion in FY17. However, gains were limited as some investors preferred to remain on sidelines ahead of key economic data -- February IIP and March CPI, to be announced after the market hours. In scrip specific development, Cyient surged by over 2% on divesting 49% stake in Cyient Solutions & Systems to Bluebird Aero Systems, an entity incorporated in Israel, pursuant to a Share Purchase Agreement.

On the global front, Asian markets were trading in red, as Syria tensions and hawkish statements from the Federal Reserve prompted caution among investors while China’s Commerce Ministry kept trade tensions simmering. Back home, the BSE Sensex is currently trading at 34023.53, up by 83.09 points or 0.24% after trading in a range of 33924.88 and 34055.36. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.10%, while Small cap index up by 0.16%.

The top gaining sectoral indices on the BSE were IT up by 2.71%, TECK up by 2.10%, Consumer Durables up by 0.56%, Bankex up by 0.26% and Auto up by 0.12%, while Oil & Gas down by 1.11%, Telecom down by 1.03%, Metal down by 0.87%, Realty down by 0.73% and PSU down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.14%, Infosys up by 2.92%, Tata Motors up by 1.56%, ICICI Bank up by 1.37% and Tata Motors - DVR up by 1.10%. On the flip side, Dr. Reddy’s Lab down by 1.91%, Adani Ports & SEZ down by 1.63%, Sun Pharma down by 1.59%, Bharti Airtel down by 1.30% and SBI down by 1.05% were the top losers.

Meanwhile, in order to speed up the process of granting exploration licences, the Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for delegating the powers to Minister of Petroleum and Natural Gas and Finance Minister to award oil and gas blocks to their winners in the ongoing auction, bids for which are due on May 2. This delegation of powers will expedite the decision making process on awarding blocks and give a boost to the initiative of ease of doing business. Earlier, only the Cabinet had the powers to approve award of a block or area for exploration and production of oil and gas. 

The Cabinet stated that the two ministers will approve the award based on the recommendations of a panel of secretaries, called the Empowered Committee of Secretaries (ECS). The delegation of power is for Open Acreage Licensing Policy (OALP) bid rounds under the Hydrocarbon Exploration and Licensing Policy (HELP). Presently, the first round of OALP is underway, with bids for 55 exploration blocks on offer for prospecting of oil and gas due on May 2. These blocks are to be awarded by July. Under the new HELP, the competitive bidding will be continuous and blocks will be awarded twice a year.

The central government received an overwhelming response in first Eol cycle of OALP which started on July 01, 2017 and closed on November 15, 2017. In the first Bid round, 55 blocks, having an area of 59282 Square kilometer spreading across 11 States have been offered for bidding. The bidding process is being handled through a secured and dedicated e-bidding portal.

The CNX Nifty is currently trading at 10427.60, up by 10.45 points or 0.10% after trading in a range of 10395.25 and 10437.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were HCL Tech. up by 3.96%, TCS up by 3.28%, Infosys up by 2.74%, Tech Mahindra up by 2.11% and Tata Motors up by 1.32%. On the flip side, BPCL down by 2.77%, HPCL down by 2.44%, Indian Oil Corporation down by 2.24%, Dr. Reddy’s Lab down by 2.03% and Adani Ports & SEZ down by 1.81% were the top losers.

Asian markets were trading in red; Hang Seng decreased 163.23 points or 0.53% to 30,734.48, Jakarta Composite was down by 58.1 points or 0.91% to 6,302.84, Nikkei 225 shed 26.82 points or 0.12% to 21,660.28, Shanghai Composite dipped 24.86 points or 0.78% to 3,183.22, Taiwan Weighted decreased 18.73 points or 0.17% to 10,955.29, FTSE Bursa Malaysia KLCI dropped 3.23 points or 0.17% to 1,866.66 and KOSPI Index decreased 1.51 points or 0.06% to 2,442.71.