Indian equities continue to trade firm

Indian equities continued to hold on to their gains and are trading in fine fettle on back of strong buying in frontline counters in the late morning session. The domestic market sentiment was also cheered by updated GDP numbers by the World Bank that put India ahead of France in terms of GDP in 2017, making it the world's sixth-biggest economy. Traders also took some support with Chief Economic Adviser (CEA) Arvind Subramanian’s statement that a three-tier structure under new tax regime is possible as revenues stabilise. He also said that GST, India's biggest reform in indirect taxes still remains a work in progress and there is a need for further simplification of rates with fewer exemptions and simpler policies.

Rally in other Asian markets too aided sentiments, with markets shaking off some of the trade jitters seen overnight after the Trump administration announced a list of Chinese goods that may be subject to new tariffs. Back home, oil marketing companies viz. HPCL, BPCL and IOC rallied on fall in global crude oil prices. Realty stocks too edged higher with a private report that the private equity (PE) investment in Indian real estate sector grew by an average 36% annually to reach $8.6 billion in 2017 from $2.5 billion in 2014.

The BSE Sensex is currently trading at 36527.14, up by 261.21 points or 0.72% after trading in a range of 36422.08 and 36564.02. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.73%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Energy up by 2.30%, Oil & Gas up by 2.07%, PSU up by 1.27%, Bankex up by 1.20% and Healthcare was up by 0.94%, while IT down by 0.56%, TECK down by 0.54% and Telecom was down by 0.10% were the few losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.54%, Yes Bank up by 2.19%, SBI up by 1.62%, Axis Bank up by 1.33% and Hindustan Unilever up by 1.32%. On the flip side, Infosys down by 1.54%, Mahindra & Mahindra down by 1.06%, ITC down by 0.65%, TCS down by 0.46% and Tata Motors - DVR down by 0.45% were the top losers.

Meanwhile, with a battery of reforms initiated by the government, the private equity (PE) investment in Indian real estate sector has increased by an average 36% annually to reach $8.6 billion (Rs 59,100 crore) in 2017 from $2.5 billion (Rs 17,200 crore) in 2014, according to a private report. The average investment per deal increased almost 2.5 times from $40 million (Rs 270 crore) per deal in 2011 to $102 million (Rs 700 crore) per deal in 2017. 

The series of reforms include implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Benami Transactions (Prohibition) Amendment Act, 2016, infrastructure status to affordable housing projects, demonetisation, interest subvention schemes, relaxation of norms to encourage Real Estate Investment Trust (REIT) listings and the Goods and Services Tax. The Indian real estate sector was perceived by investors globally as developing in terms of quality assets across segments. However, the reforms and policy decisions over the past couple of years have collectively set a new order and changed the perception of global investors on India.

The report showed that the investments which include platform deals and commitments have grown at a CAGR of 36% from 2014 to 2017. The exuberance continues in the current year with Rs 33,700 crore already being invested in the first half of 2018. While office market has continued to remain strong, a closer look indicates that the once overlooked segments of retail and warehouse have seen a renewed interest from global institutional investors.

The CNX Nifty is currently trading at 11028.30, up by 80.00 points or 0.73% after trading in a range of 10999.65 and 11041.70. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were HPCL up by 4.43%, BPCL up by 3.96%, Indian Oil Corporation up by 3.66%, Dr. Reddy’s Lab up by 2.72% and Bajaj Finserv up by 2.28%. On the flip side, Bharti Infratel down by 2.13%, Infosys down by 1.70%, Mahindra & Mahindra down by 1.35%, ITC down by 0.83% and TCS down by 0.52% were the top losers.

Asian markets are rallying; Nikkei 225 soared 282.65 points or 1.27% to 22,214.86, Straits Times gained 5.33 points or 0.16% to 3,254.41, Hang Seng jumped 278.90 points or 0.98% to 28,590.59, Taiwan Weighted advanced 50.42 points or 0.47% to 10,727.26, KOSPI added 14.38 points or 0.63% to 2,295.00, Jakarta Composite strengthened 21.45 points or 0.36% to 5,914.81 and Shanghai Composite was up by 59.36 points or 2.09% to 2,837.13.