Markets recovers most of previous session's losses with positive opening

With a positive opening Indian equity markets have recovered most of their previous session’s losses and are trading in green with over half a percent gain, which lifted both the Sensex and Nifty above their psychological 35,200 and 10,650 levels respectively, on the back of fresh buying by funds and retail investors in the early deals. Meanwhile, broader indices are also trading in green in a range of 1.10-1.25%.  The sentiments were further supported by Indian rupee appreciating 15 paise to 68.64 against the dollar in early trade on Friday at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Moreover, traders took encouragement the International Monetary Fund (IMF) suggesting steps to sustain the high growth rate which India has achieved. It said that the country should carry out banking sector reforms; continue with fiscal consolidation, simplify and streamline GST; and renew impetus on reforms.

On the global front, the US markets ended higher on Thursday with broad-based gains led by a rally in financials and technology sectors. Asian markets are trading in green following the positive cues overnight from Wall Street and on news that China has eased restrictions on foreign investment amid rising trade tensions with the U.S. Crude oil prices slipped in Asian trades after rising to a three-and-a-half-year high overnight.

Back home, none of the sectoral indices are trading in the red, while Metal, Realty, Oil & Gas, PSU and Energy witnessed maximum gains in the trade. In the scrip specific development, IDBI Bank rose 9.31% in morning deals after a report that the Insurance Regulatory and Development Authority of India is likely to approve Life Insurance Corp. of India’s proposal to pick up a substantial stake in IDBI Bank. The market breadth on the BSE was positive; there were 1376 shares on the gaining side against 412 shares on the losing side, while 56 shares remained unchanged.

The BSE Sensex is currently trading at 35240.38, up by 202.74 points or 0.58% after trading in a range of 35099.65 and 35241.22. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.16%, while Small cap index up by 1.24%.

The top gaining sectoral indices on the BSE were Metal up by 1.98%, Realty up by 1.81%, Oil & Gas up by 1.80%, PSU up by 1.58%, Energy up by 1.50%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tata Steel up by 2.86%, SBI up by 2.20%, Vedanta up by 1.67%, ONGC up by 1.33% and Reliance Industries up by 1.27%. On the flip side, NTPC down by 0.61%, Asian Paints down by 0.51%, HDFC Bank down by 0.36%, Adani Ports & SEZ down by 0.21% and Wipro down by 0.10% were the top losers.

Meanwhile, in order to sustain the high growth rate, the International Monetary Fund (IMF) has suggested three steps. It said that the country should carry out banking sector reforms; continue with fiscal consolidation, simplify and streamline GST; and renew impetus on reforms. It also expects that the recovery in the country’s growth to continue in fiscal year 2019 (FY19). It also projected the growth at 7.4 percent and 7.8 percent in FY19 and FY20, respectively.

IMF Communications Director Gerry Rice elaborated the steps one, to revive a bank credit and enhance the efficiency of credit provision; by accelerating the cleanup of bank and corporate balance sheets and enhancing the government of public sector banks. Point two, to continue fiscal consolidation and to lower elevated public debt levels supported by simplifying and streamlining the goods and services tax (GST) structure.

And thirdly, Rice said over the medium-term, renew impetus to reforms of key markets, like labour and land, as well as improving the overall business climate would be crucial to improving competitiveness and again, maintaining that very high level of growth in India. Besides, the country’s growth accelerated to 7.7 percent in the fourth quarter of FY18 and that was up from 7 percent in the previous quarter.

The CNX Nifty is currently trading at 10652.45, up by 63.35 points or 0.60% after trading in a range of 10612.35 and 10653.10. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.75%, BPCL up by 2.63%, GAIL India up by 2.32%, Hindalco up by 2.22% and SBI up by 2.22%. On the flip side, Tech Mahindra down by 2.97%, Dr. Reddy’s Lab down by 1.50%, NTPC down by 0.77%, Asian Paints down by 0.61% and Adani Ports & SEZ down by 0.22% were the top losers.

Asian markets are trading in green; Nikkei 225 increased 36.87 points or 0.17% to 22,307.26, Straits Times gained 22.11 points or 0.67% to 3,279.68, Hang Seng surged 324.58 points or 1.13% to 28,821.90, Taiwan Weighted jumped 131.61 points or 1.22% to 10,785.89, KOSPI advanced 6.06 points or 0.26% to 2,320.30, Jakarta Composite added 57.34 points or 1.00% to 5,724.66 and Shanghai Composite was up by 33.43 points or 1.19% to 2,820.33.