Benchmarks continue firm trade in morning session

Indian equity benchmarks continued their firm trade in morning session on account of buying in frontline blue chip counters. The rupee tried to shake off its blues as it opened higher against the dollar. The sentiments were upbeat on report that the Goods and Services Tax (GST) collections for March exceeded Rs 96,000 crore by April 23, the largest mop-up for any month since the comprehensive indirect tax’s launch in July last year. The report added that March collections could cross the coveted Rs 1 lakh crore mark by April-end, as payments are still being made by a section of taxpayers with late penalties. Separately, the Export Promotion Council for EOUs and SEZs (EPCES) said that exports from special economic zones (SEZs) jumped by 15% to Rs 5.52 lakh crore during the financial year 2018. It also said that in 2017-18, goods export from these zones stood at Rs 2.74 lakh crore, while shipments of services aggregated to Rs 2.78 lakh crore.

Meanwhile, the street took note that the World Bank in its latest Migration and Development Brief has stated that India retained the top position as the largest recipient of remittances, with remittances from overseas Indians increasing nearly 10% in 2017. As per the report, remittances to India jumped 9.9% to about $69 billion in 2017, reversing the previous year’s dip of $62.7 billion in 2016, but were still short of $70.4 billion received in 2014. Investors took note of the Petroleum and Natural Gas Ministry report which estimated that India’s crude oil import bill may increase 20% to $105 billion in this financial year from $88 billion in 2017-18, assuming average crude oil price of $65 per barrel for the year, about $9 a barrel less than the current rate.

Traders were seen buying in Energy, Healthcare and Oil & Gas stocks, while selling was witnessed in Metal, IT and TECK sector stocks. Metal stocks took a beating as investors turned cautious of falling aluminium prices. National Aluminium Company (NALCO) and Hindalco Industries plunged in line with a steep fall in the metal prices overseas. The prices dropped as news emerged that the US has extended the deadline for firms to wind up business with the sanctions-hit Russian producer Rusal. Americans engaged with Rusal now have until October 23 to close out their business with the aluminum giant. The US Treasury Department announcement gives Rusal longer time to sell off the aluminium it had been stockpiling in the wake of sanctions. In scrip specific development, Ruchi Soya Industries was trading in green amid reports that Baba Ramdev-led Patanjali Ayurved has joined the race to acquire the debt-ridden company. Ruchi Soya has a partnership with Patanjali for refining and packaging of edible oils.

On the global front, Asian markets were trading mostly in red as investors waited to see if the dollar’s rally was sustainable. Inflation worries are also mounting as oil and commodity prices have been rising in recent weeks. Back home, the BSE Sensex and NSE Nifty were trading above the psychological 34,500 and 10,600 levels, respectively. The market breadth on BSE was positive in the ratio of 1266:919, while 119 scrips remained unchanged.

The BSE Sensex is currently trading at 34571.40, up by 120.63 points or 0.35% after trading in a range of 34465.49 and 34606.81. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index was up by 0.45%.

The top gaining sectoral indices on the BSE were Energy up by 1.34%, Healthcare up by 1.25%, Oil & Gas up by 1.07%, Realty up by 0.96% and Auto up by 0.45%, while Metal down by 1.94%, IT down by 0.87%, TECK down by 0.83%, Telecom down by 0.80% and Basic Materials down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.66%, ICICI Bank up by 1.82%, Reliance Industries up by 1.69%, Adani Ports & Special Economic Zone up by 1.62% and Dr. Reddy’s Lab up by 1.60%.

On the flip side, Wipro down by 2.11%, Tata Steel down by 1.17%, Bharti Airtel down by 0.99%, Infosys down by 0.87% and Kotak Mahindra Bank down by 0.78% were the top losers.

Meanwhile, the Export Promotion Council for EOUs and SEZs (EPCES) has said that exports from special economic zones (SEZs) jumped by 15 percent to Rs 5.52 lakh crore during the financial year 2018. It also said that in 2017-18, goods export from these zones stood at Rs 2.74 lakh crore, while shipments of services aggregated to Rs 2.78 lakh crore.

The council has indicated that the combined export from SEZs in India of merchandise and software was worth Rs 5.51 lakh crore as against Rs 4.68 lakh crore in the last year. It pointed out that the sector has recorded healthy growth despite the challenges faced such as minimum alternate tax, dividend distribution tax. It added that the major export destinations include the United Arab Emirates, the US, the UK, Australia and Singapore.

Vinay Sharma, officiating chairman of EPCES, has said that SEZs for any foreign investor looking for 500 acres or even more land to set up plant, only an SEZ can allot the land quickly without any encumbrances, litigations, or disruptions.

The CNX Nifty is currently trading at 10600.80, up by 16.10 points or 0.15% after trading in a range of 10573.20 and 10609.85. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 3.80%, Lupin up by 2.17%, ICICI Bank up by 2.04%, Dr. Reddy’s Lab up by 1.80% and Reliance Industries up by 1.71%.

On the flip side, Hindalco down by 7.47%, Wipro down by 2.24%, Vedanta down by 2.11%, Tech Mahindra down by 1.94% and HCL Tech down by 1.62% were the top losers.

The Asian markets closed mostly in red; Taiwan Weighted decreased 113.32 points or 1.06% to 10,583.81, Jakarta Composite decreased 74.76 points or 1.19% to 6,233.38, FTSE Bursa Malaysia KLCI decreased 9.76 points or 0.52% to 1,870.60 and KOSPI Index decreased 5.17 points or 0.21% to 2,468.94.

On the other hand, Shanghai Composite increased 58.17 points or 1.9% to 3,126.18, Nikkei 225 increased 168.81 points or 0.76% to 22,256.85 and Hang Seng increased 331.07 points or 1.09% to 30,585.47.