Indian bourses continue to trade in positive territory

Key benchmark indices continued to trade in positive territory in early afternoon session, on account of buying in frontline counters amid positive leads from Asian markets. Sentiments were positive with finance ministry’s statement that World Bank will provide a $200 million loan to help the government achieve its goal of reducing stunting in children 0-6 years of age from 38.4 per cent to 25 per cent by the year 2022. The Government of India signed a loan deal worth $200 million with the World Bank for the National Nutrition Mission. Some support also came with Union Minister Suresh Prabhu’s statement that the commerce ministry has decided to formulate a comprehensive action plan to boost India's trade with Africa which is relatively small at present. A series of engagements have been lined up in different parts of Africa to discuss ways to promote trade and investments between the two regions. In scrip specific development, ICICI Bank climbed over 8 percent in early trade even as the private sector lender posted a 45% plunge in Q4 profit at Rs 1,142 crore due to a spike in bad loans.

On the global front, Asian markets were trading mostly in green, following an upbeat finish on Wall Street. Chinese benchmarks surged after Beijing reported that exports rebounded in April, jumping nearly 22 per cent from a year earlier. Back home, the BSE Sensex is currently trading at 35272.24, up by 64.10 points or 0.18% after trading in a range of 35235.88 and 35388.87. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Bankex up by 1.35%, Realty up by 0.92%, PSU up by 0.74%, Energy up by 0.47% and Oil & Gas up by 0.44%, while Capital Goods down by 0.45%, Consumer Durables down by 0.32%, TECK down by 0.24%, Auto down by 0.21% and IT down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 8.38%, SBI up by 1.56%, TCS up by 0.93%, Axis Bank up by 0.91% and ITC up by 0.59%. On the flip side, Mahindra & Mahindra down by 2.35%, Indusind Bank down by 2.04%, Infosys down by 1.21%, HDFC Bank down by 1.14% and Larsen & Toubro down by 1.02% were the top losers.

Meanwhile, domestic credit rating agency, ICRA in its latest report has said that India's demand for gold jewellery is likely to slow down to 2-4 percent in volume terms in the calendar year (CY) 2018, mainly on account of higher prices and subdued financing environment. However, it has estimated growth in value terms during the year at 5-7 percent. It pointed out that prices of the yellow metal have increased steadily in the past three months, which coupled with lesser number of auspicious days, impacted jewellery demand. Also, it noted that financing to the gems and jewellery sector have been under increased scrutiny in the recent months following reporting of fraud by few lenders on their exposures to the sector.

According to the report, with enhanced due diligence and checks on credit quality and inventory quality, lenders are more cautious on the sector. It also expected that the tightened credit availability to affect the working capital position of jewellery retailers, especially the unorganised ones. However, over the medium term, it expects the gold jewellery retail industry to record a 6-7 percent volume growth, supported by stable rural and wedding demand, cultural affinity for gold, rising disposable income, and favourable demographic profile. It added that the industry revenues are also likely to settle at 7-8 percent growth led by socio-economic and cultural factors that are unique to the Indian market.

ICRA further highlighted that in CY17, gold jewellery demand had grown by 12 percent in volumes and 9 percent in value, amid reports of higher tax rates after GST rollout and inclusion of jewellery sector under the ambit of Prevention of Money Laundering Act. It noted that the growth was supported by factors like pent-up demand on the back of favourable gold prices, pre-buying ahead of GST rollout, extended wedding season and strong rural demand with good crop output.

The CNX Nifty is currently trading at 10733.00, up by 17.50 points or 0.16% after trading in a range of 10707.55 and 10758.55. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 8.16%, HPCL up by 2.90%, Eicher Motors up by 1.77%, SBI up by 1.64% and Grasim Industries up by 1.62%. On the flip side, Mahindra & Mahindra down by 2.35%, Indusind Bank down by 2.32%, GAIL India down by 1.43%, Kotak Mahindra Bank down by 1.10% and Larsen & Toubro down by 1.05% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 13.31 points or 0.73% to 1,841.51, Shanghai Composite surged 22.57 points or 0.72% to 3,159.22, Nikkei 225 was up by 41.53 points or 0.18% to 22,508.69, Taiwan Weighted inched up 86.47 points or 0.82% to 10,691.38 and Hang Seng increased 401.54 points or 1.34% to 30,395.80.

On the flip side, Jakarta Composite decreased 103.59 points or 1.76% to 5,781.50 and KOSPI Index shed 11.57 points or 0.47% to 2,449.81.