Bourses manage to trade above neutral lines in early noon session

Key Indian benchmarks managed to trade above their neutral lines in early afternoon session, on account of buying in frontline blue chip counters. Investors were taking support from ICRA’s report stating that the GDP growth rate is expected to improve to 7.4% in Q4 FY2018 from 7.2% in Q3 FY2018, exceeding the implicit forecast of 7.1% embedded in the CSO’s Second Advance Estimate of National Income for 2017-18. Some optimism also came with a report that IT Ministry may finalise a package of measures to boost electronics exports as early as June this year. These set of measures that are expected to precede the new overarching national electronics policy currently being crafted will aim at improving the ease of doing business and removing impediments faced by companies in exporting to overseas markets. However, gains were limited with SBI’s Ecowrap report stating that India’s current account deficit is expected to widen to 2.5 percent of the Gross Domestic Product (GDP) in the financial year 2018-19, on the back of rise in the crude oil prices. In scrip specific development, Mahanagar Telephone Nigam (MTNL) was up by around a percent on investing Rs 190 crore to upgrade its services and may also get 4G spectrum, which will support the company to stay relevant in the highly competitive market.

On the global front, Asian markets were trading mostly in red, despite the overnight gains on Wall Street as investors looked for fresh cues after trade tensions between the US and China eased. Back home, the BSE Sensex is currently trading at 34621.65, up by 5.52 points or 0.02% after trading in a range of 34550.22 and 34754.60. 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 0.22%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Metal up by 0.99%, Telecom up by 0.99%, Auto up by 0.91%, Realty up by 0.85% and Capital Goods up by 0.79%, while Oil & Gas down by 0.57%, FMCG down by 0.31%, Energy down by 0.22%, PSU down by 0.06% and Bankex down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.93%, Coal India up by 2.04%, Dr. Reddy’s Lab up by 1.88%, NTPC up by 1.73% and Bharti Airtel up by 1.60%. On the flip side, Adani Ports & SEZ down by 1.50%, Asian Paints down by 1.30%, Tata Motors - DVR down by 1.17%, SBI down by 0.98% and Hindustan Unilever down by 0.92% were the top losers.

Meanwhile, ahead of the Central Statistics Office’s (CSO’s) Gross Domestic Product (GDP) estimate for the fourth quarter of fiscal 2017-18, domestic rating agency, Indian Credit Rating Agency (ICRA) in its latest report has forecasted that India’s GDP growth is expected to improve to 7.4% in January-March quarter of 2017-18 (Q4FY18) from 7.2% in Q3FY18. It added that the growth will be supported by good rabi crop harvest and improved corporate earnings. It also said that this will exceed the implicit forecast of 7.1% embedded in the CSO's Second Advance Estimate of National Income for FY18.

As per the report, the growth of the Indian gross value added (GVA) at basic prices in year-on-year (Y-o-Y) terms is likely to record a considerable recovery to 7.3% in the fourth quarter of FY18 from 6.7% in the third quarter of FY18, thereby rebounding above 7% after a gap of five quarters. The report stated that this revival in Q4, relative to the previous three months, is expected to be broad-based, supported by an uptick in industry (to 7.7% from +6.8%), agriculture, forestry and fishing (to 4.5% from 4.1%), and services (to 7.8% from +7.7%).

ICRA said that the uptick in economic activity that set in during the second half of 2017 is expected to have strengthened in Q4 FY18, led by a healthy rabi harvest, robust volume growth in various sectors, an improvement in corporate earnings and a favourable base effect. It further said it expects a mild pickup in growth in the services sector, reflecting the improvement in diesel and petrol consumption, service sector exports, passengers carried by domestic airlines, cargo handled at major ports and railway revenue carrying freight.

The CNX Nifty is currently trading at 10525.10, up by 8.40 points or 0.08% after trading in a range of 10490.55 and 10558.60. There were 26 stocks advancing against 23 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Bajaj Finserv up by 3.50%, Bajaj Auto up by 2.98%, Bajaj Finance up by 2.59%, Dr. Reddy’s Lab up by 2.37% and Hindalco up by 2.15%. On the flip side, Ultratech Cement down by 2.54%, Bharti Infratel down by 2.10%, Indian Oil Corporation down by 1.88%, Asian Paints down by 1.59% and Adani Ports & SEZ down by 1.47% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 decreased 42.03 points or 0.18% to 22,960.34, Taiwan Weighted shed 27.47 points or 0.25% to 10,938.73, Shanghai Composite dipped 6.05 points or 0.19% to 3,207.79 and FTSE Bursa Malaysia KLCI was down by 4.69 points or 0.25% to 1,848.89.

On the flip side, Jakarta Composite increased 72.87 points or 1.27% to 5,806.73.