Sensex, Nifty at day’s high; Capital Goods index top gainer

Indian equity benchmarks continued their northward rally in late afternoon session to reach at fresh intraday peak points, with Sensex and Nifty rising more than 300 and 80 points, respectively. Firm cues from European markets along with buying interest seen at all sectoral indices, helped the markets to strengthen their rally in noon deals. Gains led by industry majors such as Yes Bank and Asian Paints, also aided the domestic sentiments. Traders were taking encouragement with Economic Affairs Secretary Subhash Chandra Garg’s statement that India's macroeconomic story is quite good. He also noted that the risks to the macro story and stability are far more manageable than ever. The street also remained upbeat with industry body Assocham’s statement that the government’s decision to hike the minimum support price (MSP) for 14 khariff crops would boost farmers’ income, resulting in a huge rural demand push to the Indian economy.

Adding some optimism, Agriculture Secretary Shobhana Pattanayak said that India’s foodgrain output could exceed last year’s record of 279.51 million tonne (MT) buoyed by favourable monsoon, higher MSP and likely increase in crop productivity. Meanwhile, Union Finance Minister Piyush Goyal has lauded the Goods and Service Tax council for working as a responsive organisation and successfully implementing GST bill in the country in just a year. Besides, Union Commerce and Industries Minister Suresh Prabhu said that new India should have an economy driven by entrepreneurship and innovation. The market participants paid no heed towards P Chidambaram’s statement that GDP growth is shrinking, investment flow has dried up and no jobs are being created.

On the global front, European markets were trading in green, as investors monitored developments on trade and reacted to news that the UK’s chief Brexit negotiator has resigned from his post. In economic releases, German exports rose by more than imports in May, widening the trade surplus, in a further sign that Europe’s biggest economy remains in robust form despite trade tensions the United States. As per, the Federal Statistics Office, seasonally adjusted exports rose by 1.8% on the month, while imports rose by 0.7%. Asian markets were also trading in green, as traders looked forward to the release of Chinese trade data later this week. Back home, in scrip specific development, PSP Projects traded higher after the company received work orders worth Rs 52.07 crore from April 01, 2018 to June 30, 2018 from various clients for Industrial, Institutional and Residential projects.

The BSE Sensex is currently trading at 35961.54, up by 303.68 points or 0.85% after trading in a range of 35779.72 and 35966.14. There were 28 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.20%, while Small cap index was up by 1.40%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.55%, Industrials up by 1.48%, Energy up by 1.45%, Metal up by 1.26% and Healthcare up by 1.24%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Yes Bank up by 3.92%, Asian Paints up by 2.94%, Axis Bank up by 2.30%, Sun Pharma up by 2.10% and Vedanta up by 2.00%. On the flip side, TCS down by 1.16%, HDFC down by 0.35% and Indusind Bank down by 0.04% were the top losers.

Meanwhile, underlining that the government is merely trying to mitigate the exporters’ adversities while accessing the global markets, Commerce Minister Suresh Prabhu has said that India is not providing any subsidies to its exporters and added that this is a misconception. He also said that Organization for Economic Cooperation and Development (OECD) countries are giving more subsidises to their farmers, particularly in the export of agriculture products.

Commerce Minister further said that the country is fully complies with the guidelines of the WTO and not at all violating those. He also said that India’s focus is to keep the WTO alive & stronger and the country never had such challenging times in global trade. Besides, he noted that existence of the WTO is under threat and if there is no WTO, all countries will face problems. There will be chaos.

Prabhu also mentioned about the efforts being taken by the government to resolve the trade dispute with the US and China. Commerce Minister said India is making efforts to reduce the huge trade deficit with China. Further, he said that India is also trying to forge a number of bilateral trading agreements with Latin America, Africa, ASEAN, Europe, the UK, central Asia, GCC, Far East and China.

The CNX Nifty is currently trading at 10854.55, up by 81.90 points or 0.76% after trading in a range of 10807.15 and 10859.85. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 3.90%, Asian Paints up by 2.89%, Axis Bank up by 2.57%, Dr. Reddy’s Lab up by 2.36% and HPCL up by 2.29%. On the flip side, TCS down by 1.28%, Ultratech Cement down by 0.97%, HDFC down by 0.72%, Zee Entertainment down by 0.64% and Titan down by 0.57% were the top losers.

All Asian markets were trading in green; Nikkei 225 gained 264.04 points or 1.2% to 22,052.18, Hang Seng zoomed 372.88 points or 1.3% to 28,688.50, KOSPI increased 12.93 points or 0.57% to 2,285.80, Shanghai Composite surged 68.28 points or 2.43% to 2,815.51, Taiwan Weighted soared 111.71 points or 1.04% to 10,720.28, Straits Times was up by 32.61 points or 1.01% to 3,224.43 and Jakarta Composite rose 108.75 points or 1.87% to 5,803.66.

All European markets were trading in green; UK’s FTSE 100 increased 12.33 points or 0.16% to 7,630.03, France’s CAC gained 31.21 points or 0.58% to 5,406.98 and Germany’s DAX rose 23.07 points or 0.18% to 12,519.24.