Benchmarks trade slightly in green in morning session

Indian equity benchmarks were trading marginally in green in morning session, tracking firm global cues and sustained buying by domestic institutional investors. Traders took encouragement from a private report state that India likely retained the position of world’s fastest growing major economy in the January-March quarter, surpassing China’s growth of 6.8%, driven by gains in manufacturing and consumer spending. Some support also came with a report stating that the government expects to finalise new National Policy on Electronics in next couple of months, which will aim to boost design and innovation along with domestic production. Some optimism also came with on a report stating that the country’s special economic zones (SEZs) grew 5.44% 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% jump from Rs 461 crore in April last year to Rs 3,708 crore this year. Investors took note of a report that India will endeavour to have a ‘balanced’ Regional Comprehensive Economic Partnership (RECP) trade agreement as it would cover 40% of the global GDP and over 42% of the world’s population.

On the global front, Asian markets were trading mostly in green, as concerns over government formation in Italy eased a day after global financial markets were roiled on fears another election could turn out to be a referendum on the country’s euro membership. Back home, in scrip specific development, Orient Cement gained on entering into agreement with Jaiprakash Associates. Beside, Indiabulls Housing Finance moves up on raising Rs 100 crore via Non-Convertible Debentures of face value Rs 10 lakh each on Private Placement basic.

The BSE Sensex is currently trading at 34958.25, up by 52.14 points or 0.15% after trading in a range of 34926.08 and 35152.17. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.03%, while Small cap index was down by 0.10%.

The top gaining sectoral indices on the BSE were Telecom up by 0.57%, Oil & Gas up by 0.54%, Energy up by 0.47%, Consumer Durables up by 0.41% and IT was up by 0.24%, while Power down by 0.59%, Auto down by 0.34%, Healthcare down by 0.24%, Industrials down by 0.23% and Basic Materials was down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.30%, HDFC Bank up by 2.15%, Coal India up by 1.66%, Infosys up by 0.70% and Bharti Airtel was up by 0.69%. On the flip side, Sun Pharma down by 1.69%, ICICI Bank down by 1.38%, Power Grid down by 1.38%, Hero MotoCorp down by 1.26% and Tata Motors was down by 1.02% were the top losers.

Meanwhile, Moody’s Investors Service in its ‘Global Macro Outlook: 2018-19’ has trimmed India’s gross domestic product (GDP) growth forecast for 2018 to 7.3 percent from 7.5 percent projected earlier. However, it kept the growth forecast for 2019 unchanged at 7.5 percent. It noted that the Indian economy is in cyclical recovery led by both investment and consumption, but rising fuel prices and tighter financial condition will weigh on the pace of acceleration.

According to the report, an acceleration in rural consumption, aided by higher minimum support prices and a normal monsoon, would help the economy grow. It also said that the private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues - impaired assets at banks and corporates - slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code. However, it cautioned that the ongoing transition to the new Goods and Service Tax (GST) regime could weigh on growth somewhat over the next few quarters, which poses some downside risk to the forecast. But, it expects these issues to moderate over the course of the year.

For the world economy, Moody’s expected 2018 to be a year of robust global growth, similar to 2017. However, it said that global growth will likely moderate by the end of 2018 and in 2019 as a result of a number of advanced economies reaching full employment, and because of rising borrowing costs and tighter credit conditions in both advanced and emerging market countries that will hamper further acceleration.

The CNX Nifty is currently trading at 10636.40, up by 22.05 points or 0.21% after trading in a range of 10620.40 and 10676.10. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.56%, HDFC Bank up by 1.99%, GAIL India up by 1.97%, Tech Mahindra up by 1.50% and Coal India was up by 1.42%. On the flip side, Sun Pharma down by 1.68%, ICICI Bank down by 1.30%, Hero MotoCorp down by 1.14%, Tata Motors down by 1.11% and Power Grid was down by 1.05% were the top losers.

Asian markets were trading mostly in green, KOSPI Index advanced 11.84 points or 0.49% to 2,420.87, Shanghai Composite gained 42.05 points or 1.38% to 3,083.49, Taiwan Weighted surged 51.91 points or 0.48% to 10,873.08, Nikkei 225 rose 177.6 points or 0.81% to 22,196.12 and Hang Seng was up by 226.12 points or 0.75% to 30,282.91.

On the other side, Jakarta Composite was down by 54.2 points or 0.9% to 5,956.85.