Frontline gauges extend gains; Sensex above 35,000 level

Frontline gauges gained traction in early noon deals with Nifty inching towards 10,650 mark and Sensex surpassing 35,000 level ahead of F&O expiry for the month of May. Investors took some encouragement with SBI research report, where it expecting GDP growth for Q4FY18 to be around 7.6 percent and the FY18 growth to be at 6.7 percent. It also said that the GDP growth for Q4 and FY18 is likely to spring a positive surprise. Investors’ sentiments also got some boost with a private report stating that India’s growth is likely to touch 7.3 percent in January-March quarter surpassing China’s growth of 6.8 per cent. Traders are focusing on GDP data to be released later in the day. Sentiments also remained up-beat with another private report stating that rise in capital investment growth to near 9 percent in the last quarter of the 2017-18 compared with 2.4 percent a year earlier which indicated a pick-up in private investments.

On the global front, Asian equities were trading mostly in green and bounced back on Thursday from the previous day’s mauling as fears of turmoil in Italy were soothed by conciliatory noises from the country’s two biggest populist parties. Back home, some support also came with ICRA’s latest report stating that cement production in India registered a growth of 6.3 percent at 298 million tonne (MT) in the financial year 2018, as compared to 280 MT in FY17. Meanwhile, a report stated that India Inc reported strong growth in March quarter net profit, reflecting the broader economic revival, with banks being the exception due to changes in regulatory norms. In the scrip specific developments, KNR Constructions surged on bagging project worth Rs 1144.50 crore and Mahindra & Mahindra soared on reporting 70% rise in Q4 net profit.

The BSE Sensex is currently trading at 35024.20, up by 118.09 points or 0.34% after trading in a range of 34926.08 and 35152.17. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.26%, while Small cap index down by 0.20%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.88%, Energy up by 0.61%, IT up by 0.54%, TECK up by 0.34% and Bankex was up by 0.19%, while Healthcare down by 0.57%, Power down by 0.57%, Realty down by 0.46%, Basic Materials down by 0.46% and Metal was down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 3.33%, HDFC Bank up by 2.23%, Mahindra & Mahindra up by 1.32%, Coal India up by 1.32% and Infosys up by 1.07%. On the flip side, Sun Pharma down by 1.68%, ICICI Bank down by 1.37%, Hero MotoCorp down by 1.37%, Dr. Reddys Lab down by 1.09% and Tata Motors down by 0.85% were the top losers.

Meanwhile, credit rating agency, ICRA in its latest report has said that cement production in India registered a growth of 6.3 percent at 298 million tonne (MT) in the financial year 2018, as compared to 280 MT in FY17, with the bulk of production growth was reported in the second half of FY18. It noted that the growth in output was mainly because of better demand in the key markets and the base effect of the demonetisation-driven low demand during the corresponding period of last year.

Rating agency has stated that going by the prevalent trend, the growth momentum is expected to continue in FY19 and the industry is likely to witness a growth of around 6 percent. It pointed out that this is primarily on the back of pick-up in the affordable and rural housing segments and infrastructure - primarily road and irrigation projects. Besides, it said that the FY19 budget also provides support in this direction with higher rural credit, increased allocation for rural, agricultural and allied sectors along with continued focus on the PMAY and infrastructure investments.

The report further indicated that the cement production increased by 10.6 percent and 18.2 percent respectively in the December and March quarters of 2017-18. It said that the trend was supported by demand in Andhra Pradesh and Telangana, driven by irrigation, low-cost housing and infrastructure projects.  Besides, it noted that in April 2018, rising demand resulted in an increase in cement prices in the Ahmedabad and Hyderabad markets respectively by Rs 20/a bag and Rs 10/a bag, respectively. However, it said that rising supplies resulted in prices remaining range-bound in the Kolkata market.

The CNX Nifty is currently trading at 10644.60, up by 30.25 points or 0.28% after trading in a range of 10620.40 and 10676.10. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.42%, HDFC Bank up by 2.06%, Tech Mahindra up by 1.93%, GAIL India up by 1.31% and UPL up by 1.28%. On the flip side, Sun Pharma down by 1.64%, Vedanta down by 1.49%, ICICI Bank down by 1.30%, Dr. Reddys Lab down by 1.20% and Hero MotoCorp down by 1.12% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 14.71 points or 0.61% to 2,423.74, Shanghai Composite advanced 50.13 points or 1.65% to 3,091.57, Taiwan Weighted surged 53.79 points or 0.5% to 10,874.96, Nikkei 225 soared 216.59 points or 0.98% to 22,235.11 and Hang Seng was up 278.46 points or 0.93% to 30,335.25.

On the flip side Jakarta, Composite decreased 55.46 points or 0.92% to 5,955.59.