Domestic equity bourses continue to trade higher

Domestic equity bourses continued to trade higher on value-buying in energy, realty, bankex, consumer durables stocks amid firm global cues. Traders took some encouragement with a report stating that the government has come out with a product and services standardisation strategy in order to boost the country’s economy. Further, some support also came with Economic Affairs Secretary Subhash Chandra Garg’s statement that current account deficit (CAD) at 2.5 % of GDP won’t be a worry as the government has the required instruments to deal with any imbalance created due to foreign fund outflow. Adding to the optimism, Niti Aayog CEO Amitabh Kant said that the Centre has saved Rs 90,000 crore by digitally transferring money to beneficiaries of 440 government schemes.

On the sectoral front, agriculture sector was in focus after Prime Minister Narendra Modi showcased the government’s ‘unprecedented’ work in the sector, including doubling of the budget to Rs 2.12 lakh crore. Modi also reiterated that the government is working to double farm income by 2022.  Banking sector was trading higher with Piyush Goyal stating the government is open to giving more powers to RBI to deal more effectively with frauds like the ones allegedly committed by diamond jeweller Nirav Modi in PNB.

On the global front, Asian markets were trading mostly in green. All the European markets were trading in green. Back home, the BSE Sensex is currently trading at 35470.37, up by 183.63 points or 0.52% after trading in a range of 35329.51 and 35531.20. There were 25 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index up by 0.22%.

The top gaining sectoral indices on the BSE were Energy up by 0.87%, Realty up by 0.77%, Bankex up by 0.63%, Consumer Durables up by 0.56% and Utilities up by 0.52%, while Capital Goods down by 0.55%, PSU down by 0.55%, Oil & Gas down by 0.41%, FMCG down by 0.27% and Industrials down by 0.25% were the losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.28%, Yes Bank up by 1.54%, Vedanta up by 1.47%, Indusind Bank up by 1.27% and HDFC Bank up by 1.07%. On the flip side, ONGC down by 1.40%, Coal India down by 1.24%, Larsen & Toubro down by 0.97%, ITC down by 0.86% and Wipro down by 0.73% were the top losers.

Meanwhile, amid higher fares on rising fuel prices, the domestic air passenger traffic registered slightly lower growth of 16.53% in the month of May. According to the Directorate General of Civil Aviation (DGCA) data, domestic airlines flew 118.56 lakh passengers in May, over to 101.74 lakh passengers carried in the same period last year.

The data also showed that the domestic air passenger count has gone up by 22.69% during January-May 2018. Indian carriers carried 571.58 lakh passengers during period under review as against 465.87 lakh during the corresponding period of previous year. Besides, in terms of passenger load factor (PLF), SpiceJet were leading among all with 94.8% PLF during the month of May 2018, followed by IndiGo (91%) and AirAsia India (89.7%).

In terms of on time performance (OTP), IndiGo has taken lead from the rest with 80.9% of its flights arriving and departing as per schedule from four metro airports, Mumbai, Delhi, Hyderabad and Bengaluru, followed by SpiceJet (80.0%) and Vistara (76.7%). During May 2018, a total of 724 passenger related complaints had been received by the scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the month of May 2018 has been around 0.61.

The CNX Nifty is currently trading at 10758.80, up by 48.35 points or 0.45% after trading in a range of 10724.05 and 10772.15. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.34%, Zee Entertainment up by 1.66%, Indusind Bank up by 1.62%, Vedanta up by 1.36% and Yes Bank up by 1.36%. On the flip side, UPL down by 2.83%, Indian Oil Corporation down by 1.90%, HPCL down by 1.60%, ONGC down by 1.40% and Coal India down by 1.26% were the top losers.

Most of the Asian markets were trading in green; Nikkei 225 surged 276.95 points or 1.23% to 22,555.43, Hang Seng soared 228.02 points or 0.77% to 29,696.17, Taiwan Weighted increased 23.25 points or 0.21 % to 10,927.44, Shanghai Composite rose 8.92 points or 0.31% to 2,916.74, KOSPI was up by 23.80 points or 1.01% to 2,363.91 and Straits Times moved up 13.53 points or 0.41% to 3,314.88. On the flip side, Jakarta Composite was down by 109.59 points or 1.86% to 5,884.04.

All the European markets were trading in green; Germany’s DAX increased 67.51 points or 0.53% to 12,745.48, France’s CAC was up 22.02 points or 0.41% to 5,412.65 and UK’s FTSE 100 surged 89.75 points or 1.17 % to 7,693.60.