Sensex, Nifty trade in green; IT, FMCG stock up

Indian equity benchmarks were trading higher in late afternoon session, with the Sensex gaining around 90 points, on the back of heavy buying in IT, FMCG and TECK stocks. Gains led by major industry gainers like Yes Bank, TCS and Indusind Bank, were supporting the indices to trade in green terrain. Sentiment remained positive with a private report that the Agriculture ministry is targeting record foodgrain output of 283.7 million tonnes in the crop year beginning July, with 140.20 million tonnes targeted for the kharif (summer-sown) crop, on expectation of normal rains during the June-September monsoon season. The domestic sentiments were also upbeat, as India’s global trade grew by 16.32% to $767.9 billion in the fiscal year 2017-18, as compared to trade of $660.2 billion in the year 2016-17. As per the Commerce Department’s latest data, the country’s bilateral trade with Latin American countries (LAC) including Bolivia, Peru, Chile and Brazil has recorded healthy growth in 2017-18. Some support also came with a report that credit growth of banks grew by 11.52% year-on-year to Rs 84,78,459 crore in the fortnight ended April 13, 2018. According to latest data from the Reserve Bank of India (RBI), the advances had stood at Rs 76,01,970 crore in the same fortnight ended April 14, 2017. The market participants paid no heed towards Retirement fund body Employees’ Provident Fund Organisation (EPFO) report that the pace of job creation in non-farm sectors slowed down in the month of February 2018, as new member registrations with the EPFO for its various schemes fell to a four-month low of 4,72,075 during the month.

On The global front, European markets were trading mostly in red, as investors eyeing the European Central Bank (ECB) decision. The ECB is scheduled to release its latest update on monetary policy later today. No changes are expected, but the language and the forward guidance will be crucial. Asian markets were trading in red. Back home, in scrip specific development, ABB traded higher after the company inaugurated an innovative micro-grid solution at its Vadodora manufacturing facility in Gujarat, India.

The BSE Sensex is currently trading at 34588.19, up by 86.92 points or 0.25% after trading in a range of 34505.62 and 34644.28. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.25%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were IT up by 0.92%, FMCG up by 0.78%, TECK up by 0.46%, Consumer Durables up by 0.30% and Auto up by 0.29%, while Telecom down by 2.24%, Capital Goods down by 1.10%, Oil & Gas down by 0.72%, PSU down by 0.68% and Realty down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 6.27%, TCS up by 1.83%, Indusind Bank up by 1.38%, Hindustan Unilever up by 1.26% and Infosys up by 1.12%. On the flip side, Wipro down by 3.05%, Larsen & Toubro down by 1.97%, Axis Bank down by 1.89%, Bharti Airtel down by 1.87% and SBI down by 1.52% were the top losers.

Meanwhile, in order to fund the ‘Innovate in India for Inclusiveness Project’, the Government of India has signed a loan agreement for IBRD credit of $125 million with the World Bank.

As per the Ministry of Finance’s notification, the project consists of three parts -- strengthening of pilot-to market innovation ecosystem, acceleration of the pilot-to-market process for specific products and project management and monitoring & evaluation, and the closing date of the project is June 30, 2023.

The government’s ‘Innovate in India for Inclusiveness project’ will nurture indigenous innovation, foster local product development and accelerate commercialization process by bridging critical skill and infrastructure gaps to promote affordable and innovative healthcare products generation for inclusive development and increasing competitiveness in India. The project is also expected to support consortia of public, private, and the academic institutions to overcome the key market failures currently holding back the development of an innovative biopharmaceutical and medical devices industry in India.

The CNX Nifty is currently trading at 10580.05, up by 9.50 points or 0.09% after trading in a range of 10559.65 and 10596.10. There were 24 stocks advancing against 25 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Yes Bank up by 6.27%, TCS up by 1.74%, Indusind Bank up by 1.36%, Hindustan Unilever up by 1.28% and HCL Tech up by 1.28%. On the flip side, Bharti Infratel down by 3.89%, Wipro down by 3.03%, Larsen & Toubro down by 2.21%, Bharti Airtel down by 2.07% and Axis Bank down by 2.03% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 320.47 points or 1.06% to 30,007.68, Jakarta Composite decreased 165.21 points or 2.72% to 5,914.64, Taiwan Weighted decreased 71.39 points or 0.68% to 10,488.58 and Shanghai Composite decreased 42.94 points or 1.38% to 3,075.03. On the flip side, FTSE Bursa Malaysia KLCI increased 0.33 points or 0.02% to 1,852.26, KOSPI Index increased 26.83 points or 1.1% to 2,475.64 and Nikkei 225 increased 104.29 points or 0.47% to 22,319.61.

European markets were trading mostly in red; Germany’s DAX decreased 19.6 points or 0.16% to 12,402.70 and UK’s FTSE 100 decreased 4.07 points or 0.06% to 7,375.25. On the flip side, France’s CAC increased 18.75 points or 0.35% to 5,432.05.