Benchmarks trade flat with positive bias

Domestic equity benchmarks were trading flat with positive bias in morning session, as investors after digesting better-than-expected Q4 GDP data shifted focus to global trade concerns, and the movement in crude oil prices and rupee. Sentiments remained optimistic with data released by Controller General of Accounts stating that Fiscal deficit for 2017-18 worked out to be 3.53% of the GDP, broadly in line with the government’s revised estimates. The revenue deficit was 2.65% of the GDP. In absolute terms, the fiscal deficit was Rs 5.91 lakh crore or 99.5% of the Budget estimates. Markets took support from the report which stated that the government kept its economic growth forecast for current fiscal unchanged at 7.5% buoyed by turnaround in manufacturing and pick up in investment. The report also highlighted that gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a 7-quarter high of 7.7%, helping India retain the tag of world’s fastest growing major economy. Besides, India signed a $500 million (Rs 3,371 crore) loan pact with World Bank to provide additional financing for PMGSY rural road projects. The loan has a 3-year grace period, and a maturity of 10 years.

Asian markets were trading mixed, as a softer yen supported Japanese stocks and firm export data drove South Korean markets higher, although rekindled concerns about US protectionist trade policies limited gains. Back on domestic turf, traders took note of a report stating that an increase in cement and coal production pushed core sector growth to 4.7% in April, compared to 2.6% in the same month last year. The core sector growth was at 4.4% in March this year. The core sector comprises eight key industries and contributes over 40% to overall industrial production.

The BSE Sensex is currently trading at 35324.47, up by 2.09 points or 0.01% after trading in a range of 35267.81 and 35438.22. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.15%, while Small cap index was down by 0.30%.

The top gaining sectoral indices on the BSE were Auto up by 0.78%, Metal up by 0.73%, Capital Goods up by 0.55%, Consumer Durables up by 0.54% and Telecom was up by 0.46%, while Power down by 1.53%, Utilities down by 1.45%, PSU down by 0.73%, Oil & Gas down by 0.58% and Bankex was down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 3.65%, Maruti Suzuki up by 1.58%, Tata Motors up by 1.56%, Larsen & Toubro up by 1.46% and ICICI Bank was up by 1.42%. On the flip side, Power Grid down by 3.54%, ONGC down by 2.40%, Adani Ports & SEZ down by 2.09%, Kotak Mahindra Bank down by 1.27% and NTPC was down by 0.99% were the top losers.

Meanwhile, India’s core sector output grew at a marginally higher pace of 4.7 percent in April 2018, as compared to 4.4% in March 2018, helped by healthy performance in segments like coal, natural gas and cement. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 124.2 in April, 2018, which was 4.7% higher compared to the index of April, 2017. Its cumulative growth during April to March, 2017-18 was 4.3%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).   

Among eight core sectors, Coal production having 10.33% weight rose 16.0% in April, 2018 over April, 2017, and its cumulative index increased by 2.6% during April to March, 2017-18 over corresponding period of the previous year.  Petroleum Refinery production having 28.04% weight increased 2.7% in April, 2018 over April, 2017 and its cumulative index surged by 4.6% during April to March, 2017-18 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight inched up by 7.4% in April, 2018 over April, 2017, and its cumulative index was up by 2.9% during April to March, 2017-18 over the corresponding period of previous year. Steel production having 17.92% weight rose 3.5% in April, 2018 over April, 2017 and its cumulative index jumped by 5.6% during April to March, 2017-18 over the corresponding period of previous year.

Crude Oil production having 8.98% weight declined by 0.8% in April, 2018 over April, 2017 and its cumulative index fell by 0.9% during April to March, 2017-18 over the corresponding period of previous year. Fertilizer production having 2.63% weight increased by 4.6% in April, 2018 over April, 2017, and its cumulative index rose marginally by 0.03% during April to March, 2017-18 over the corresponding period of previous year. On the other hand, Cement production having 5.37% weight jumped 16.6% in April, 2018 over April, 2017 and its cumulative index increased by 6.3% during April to March, 2017-18 over the corresponding period of previous year.

The CNX Nifty is currently trading at 10732.50, down by 3.65 points or 0.03% after trading in a range of 10716.40 and 10764.75. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 3.70%, Vedanta up by 2.86%, Tata Motors up by 1.63%, Maruti Suzuki up by 1.49% and ICICI Bank was up by 1.35%. On the flip side, Power Grid down by 3.94%, ONGC down by 2.70%, Adani Ports & SEZ down by 2.23%, GAIL India down by 1.82% and NTPC was down by 1.58% were the top losers.

Asian stocks were trading mixed, KOSPI Index gained 17.68 points or 0.73% to 2,440.69, Nikkei 225 surged 37.36 points or 0.17% to 22,239.18 and Taiwan Weighted was up by 71.86 points or 0.66% to 10,946.82.

On the other flip, Hang Seng slipped 51.2 points or 0.17% to 30,417.36 and Shanghai Composite was down by 16.31 points or 0.53% to 3,079.16.