Benchmarks make optimistic start on firm global cues

Indian equity benchmarks have made an optimistic start and are trading in fine fettle in early deals on F&O expiry day amid firm global cues. Sentiments remained up-beat with report that India likely to retain the position of world’s fastest growing major economy in the January-March quarter, surpassing China’s growth of 6.8 per cent, driven by gains in manufacturing and consumer spending. The poll on the latest quarter’s annual growth was 7.3 per cent, the best pace since July-September 2016, the quarter before the government unexpectedly scrapped high-value currency notes. Traders also took some encouragement with report showing that the country’s special economic zones (SEZs) grew 5.44 percent in April to Rs 20,548 crore as against Rs 19,488 crore in the same month a year ago. According to Export Promotion Council for EOUs & SEZs (EPCES), highest growth in outward shipments was recorded from the Cochin SEZ which witnessed a 704 percent jump from Rs 461 crore in April last year to Rs 3,708 crore this year. Adding to the optimism, commerce and industry minister Suresh Prabhu said that India will pitch for continuing the eligibility of its 3,500-odd goods for low or zero duties in the US.

Global cues too remained supportive with Asian markets trading mostly in green in early deals on Thursday, as political turmoil in Italy that had roiled global financial markets showed signs of easing. The US markets rose sharply on Wednesday, rebounding from the previous day’s rout, as energy shares bounced back amid a rally for oil prices and worries over Italy’s political crisis faded.

Back home, traders paid no heed towards report that credit rating agency Moody’s has cut its forecast for India's GDP growth in 2018 to 7.3 percent from 7.5 percent earlier. In scrip specific developments, J&K Bank jumped on getting approval for raising Rs 2,000 crore, Jubilant FoodWorks moved up on Axis MF buying 3.59 lakh shares and Saksoft was up on getting nod to acquire further 20% stake in Dreamorbit Softech.

The BSE Sensex is currently trading at 34999.31, up by 93.20 points or 0.27% after trading in a range of 34966.00 and 35152.17. There were 16 stocks advancing against 14 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index rose 0.08%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Telecom up by 1.26%, Consumer Durables up by 0.65%, Metal up by 0.43%, Capital Goods up by 0.32% and FMCG was up by 0.32%, while Auto down by 0.28%, Realty down by 0.25%, Power down by 0.20%, Healthcare down by 0.19% and PSU was down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.34%, HDFC Bank up by 2.22%, Bharti Airtel up by 1.64%, ONGC up by 1.18% and HDFC up by 0.79%. On the flip side, ICICI Bank down by 1.65%, Sun Pharma down by 1.34%, Adani Ports down by 1.11%, Hero MotoCorp down by 1.10% and Yes Bank down by 1.09% were the top losers.

Meanwhile, India’s special economic zones (SEZs) registered healthy growth in exports. As per the Export Promotion Council for EOUs & SEZs (EPCES) data, exports from the nations’ SEZs rose 5.44 percent to Rs 20,548 crore in the month of April 2018 as against Rs 19,488 crore in the same month a year ago. It added that the government’s policies have managed to register a healthy growth roadmap for manufacturing and service industry.

According to the data, highest growth in outward shipments was recorded from the Cochin SEZ which witnessed a 704 percent jump to Rs 3,708 crore in April this year from Rs 461 crore in April last year. Falta has observed Rs 905 crore of a surge in the export value of 80 percent than Rs 452 crore of last year export value. Other SEZs observed positive growth are Indore, MEPZ with 14 percent and Noida with 9 percent.

On the sectoral front, EPCES data showed that major sectors recording healthy growth include biotech, chemicals, pharmaceuticals, computer, electronics, non-conventional energy, plastic, rubber, trading and services. The biotech export from the SEZ has also seen a surge of 58 percent year on year basis between years ending April 2017 and April 2018. India has exported computer and electronic software worth Rs 30,892 crore against Rs 24,614 crore last year. Electronics export has surged to 417 percent against last year and non-conventional energy export has increased by 161 percent to Rs 20 crore in April 2018 from Rs 7 crore in April 2017.

The CNX Nifty is currently trading at 10638.10, up by 23.75 points or 0.22% after trading in a range of 10630.00 and 10676.10. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 2.32%, Coal India up by 2.02%, Bharti Airtel up by 1.58%, ONGC up by 1.09% and Eicher Motors up by 1.04%. On the flip side, ICICI Bank down by 1.68%, HPCL down by 1.61%, BPCL down by 1.44%, Sun Pharma down by 1.41% and Axis Bank down by 1.25% were the top losers.

Asian markets are trading mostly in green; KOSPI Index gained 13.15 points or 0.55% to 2,422.18, Shanghai Composite surged 42.05 points or 1.38% to 3,083.49, Taiwan Weighted rose 52.8 points or 0.49% to 10,873.97, Nikkei 225 added 164.52 points or 0.75% to 22,183.04 and Hang Seng was up by 226.12 points or 0.75% to 30,282.91. 

On the flip side, Jakarta Composite was down by 41.36 points or 0.69% to 5,969.70.