Benchmarks trade in positive territory

Indian equity benchmarks continued their trade in positive territory in morning session. Market-men took some support with a private report stating that clocking the fastest growth in seven years, India’s direct tax collection in the fiscal year 2017-18 stood at about Rs 10.03 lakh crore. Between April 2017 and March 2018, the direct tax collection was up 18% year-on-year. Investors took note of a report stating that the India has moved one notch higher, to the 44th place in terms of competitiveness, in the annual rankings compiled by International Institute for Management Development (IMD) which placed the US in the top slot. Meanwhile, the Cabinet has cleared amendments to the Insolvency and Bankruptcy Code (IBC), incorporating changes suggested by a government-appointed panel.

On the global front, Asian markets were trading mixed. Investors fretted about new setbacks in US-China trade talks, but negative sentiment was tempered by US Federal Reserve meeting minutes suggesting it would not raise the tempo at which it increases interest rates. Back home, in the scrip specific development, HDFC Bank was trading in limelight on report that the Bank is clocking loan sales of Rs 1,000 crore per month through digital platforms across products and expects it to go up further with the launch of a an online loan against mutual funds.

The BSE Sensex is currently trading at 34476.32, up by 131.41 points or 0.38% after trading in a range of 34367.83 and 34507.17. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.24%, while Small cap index was down by 0.03%.

The top gaining sectoral indices on the BSE were IT up by 1.56%, TECK up by 1.36%, Healthcare up by 0.64%, Telecom up by 0.50% and FMCG stock was up by 0.34%, while Auto down by 1.19%, Oil & Gas down by 1.18%, Consumer Durables down by 0.74%, Industrials down by 0.73% and Realty was down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.13%, Sun Pharma up by 2.06%, TCS up by 1.71%, Tata Steel up by 1.34% and Axis Bank was up by 1.28%. On the flip side, Tata Motors down by 5.85%, Tata Motors - DVR down by 3.49%, ONGC down by 2.39%, Adani Ports & SEZ down by 1.29% and Maruti Suzuki was down by 0.90% were the top losers.

Meanwhile, India has been ranked 44th in the year 2018, up one notch from last year, in terms of competitiveness in the annual rankings compiled by International Institute for Management Development (IMD) which saw the United States (US) topping the list. The US improved three positions to return to the top spot, driven by its strength in economic performance, government efficiency, capital provision and digital infrastructure.

Regarding India, the report stated that some of the challenges which India has to face for the year 2018 would be skilling of manpower and employment generation, streamlining the implementation of goods and services tax and balancing high growth with sustainable development goals. It also noted that digital literacy and adequate bandwidth at rural areas and mobilisation of resources for infrastructure development needs are few more key areas where the government needs to concentrate.

Hong Kong and Singapore were ranked second and third respectively. Besides, the Netherlands and Switzerland were the other two nations in the top five slots. Others in the top 10 list include Denmark (6th), the UAE (7th), Norway (8th) and Sweden (9th) and Canada (10th). Meanwhile, China (13th) continued with its steady rise in rankings over the past five years, climbing 10 spots since 2014, fuelled by a strong economic performance of its domestic market and workforce employment.

Arturo Bris, Director of the IMD World Competitiveness Center has pointed out that countries at the top of the rankings share an above average performance across all competitiveness factors, but their competitiveness mix varies. He also said that one economy, for example, may build its competitiveness strategy around a particular aspect such as its tangible and intangible infrastructure; another may approach competitiveness through their governmental efficiency.

The CNX Nifty is currently trading at 10451.25, up by 20.90 points or 0.20% after trading in a range of 10419.80 and 10470.35. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.14%, Sun Pharma up by 1.92%, TCS up by 1.63%, HCL Tech. up by 1.44% and Axis Bank was up by 1.34%. On the flip side, Tata Motors down by 5.83%, Grasim Industries down by 3.57%, HPCL down by 3.05%, BPCL down by 2.93% and GAIL India was down by 2.83% were the top losers.

Asian market were trading mixed, Hang Seng surged 21.33 points or 0.07% to 30,686.97, Taiwan Weighted gained 45.11 points or 0.41% to 10,931.29 and Jakarta Composite was up by 140.38 points or 2.42% to 5,932.38. On the other side, Nikkei 225 slipped 275.4 points or 1.21% to 22,414.34, FTSE Bursa Malaysia KLCI fall 21.75 points or 1.21% to 1,782.50, KOSPI Index losses 4.31 points or 0.17% to 2,467.60 and Shanghai Composite was down by 1.14 points or 0.04% to 3,167.83.