Indian markets trade flat with positive bias

Indian equity benchmarks were trading flat with a positive bias in early afternoon session, on account of buying in frontline blue chip counters. Investors were taking support with India Ratings’ report that the Indian economy is gradually coming out of the twin shock of demonetisation and GST which temporarily derailed growth. The ratings agency, however, cautioned on the possible widening of the current account deficit (CAD) due to rising oil prices which was creating pressure on the currency. However, gains were limited as anxiety remained among the traders with Assocham’s statement that President Donald Trump’s announcement of the US pulling out from the Iran deal and his decision to re-impose sanctions on the key crude oil producer will exert pressure on fuel prices and affect the Indian economy on the downside. Some caution also prevailed in the markets ahead of elections in the southern state of Karnataka. In scrip specific development, Great Eastern Shipping Company was up by over half a percent on taking delivery of secondhand Medium Gas Carrier ‘Jag Vayu’ (1996 Built) of about 36,567 cbm.

On the global front, Asian markets were trading in green, tracking solid overnight gains on Wall Street despite lingering concerns about the US withdrawal from the Iran nuclear deal and trade tensions between Asia and the US. Back home, the BSE Sensex is currently trading at 35350.76, up by 31.41 points or 0.09% after trading in a range of 35312.32 and 35500.76. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.96%, while Small cap index was down by 0.64%.

The top gaining sectoral indices on the BSE were Energy up by 0.45%, IT up by 0.26%, Oil & Gas up by 0.21%, TECK up by 0.21% and Bankex up by 0.01%, while Power down by 1.62%, Utilities down by 1.44%, Realty down by 1.24%, Basic Materials down by 0.96% and Metal down by 0.91% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.78%, Tata Motors - DVR up by 1.47%, Coal India up by 1.38%, Indusind Bank up by 1.29% and Bharti Airtel up by 1.18%. On the flip side, Power Grid down by 2.69%, Dr. Reddy’s Lab down by 1.92%, Tata Motors down by 1.58%, NTPC down by 1.38% and Tata Steel down by 1.28% were the top losers.

Meanwhile, with improving major macro parameters like manufacturing, capital goods production, non-food credit and consumption, the credit rating agency, India Ratings and Research (Ind-Ra) has said that the Indian economy is gradually recovering from note ban and Goods and Service Tax (GST) shocks, which temporarily derailed growth.

The rating agency noted that the country may grow at 7.4% in the current financial year, if things continue to improve like they are improving now and the policy remains conducive. It further said that it was unlikely that the government would go ahead with big bang reforms due to the 2019 Lok sabha elections.

However, Ind-Ra expressed concern over the possible widening of the current account deficit (CAD), on the back of rising oil prices which was creating pressure on the currency. It also said that if the CAD remained within 3%, then it would not be alarming for the economy provided capital inflows were in excess of outflows caused by high oil import bill and the rupee will have an appreciating bias.

The CNX Nifty is currently trading at 10743.35, up by 1.65 points or 0.02% after trading in a range of 10731.45 and 10785.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were ONGC up by 1.94%, Coal India up by 1.51%, Zee Entertainment up by 1.44%, Tech Mahindra up by 1.26% and Bharti Airtel up by 1.25%. On the flip side, Power Grid down by 2.88%, Indiabulls Housing Finance down by 2.37%, Dr. Reddy’s Lab down by 1.95%, Tata Motors down by 1.87% and Tata Steel down by 1.48% were the top losers.

All the Asian markets are trading in green; Shanghai Composite increased 11.59 points or 0.37% to 3,170.74, KOSPI Index was up by 20.18 points or 0.83% to 2,464.16, Taiwan Weighted added 56.86 points or 0.53% to 10,760.21, Nikkei 225 surged 88.3 points or 0.39% to 22,497.18 and Hang Seng inched up 281.06 points or 0.92% to 30,817.2.