Indian equities remain in green terrain

Indian equity benchmarks continued their trade in green territory in afternoon session, on buying by funds and retail investors. Sentiments remained positive with a private report stating that the 10 major economies of Asia, including India, are expected to see robust growth and amount to over $28 trillion in real GDP terms on aggregate, more than the US by 2030. Some solace was also among the local traders with retirement fund body EPFO’s payroll data suggesting that as many as 4,474,859 jobs created during September 2017 to May this year. Meanwhile, the GST Council announced the reduction of rates on a list of 100 items, including sanitary pads, small TVs and footwear. Moreover, expectations of positive quarterly results along with lower goods and services tax (GST) rate on items of mass consumption too supported equity indices. However, further gains were restricted with a report that industry chamber Assocham claimed that Corporate India is becoming more vulnerable to sudden policy change risks emanating at the Central and state levels. It added that any amendment in rules should involve stakeholders' consultation before being pronounced. On the sectoral front, Footwear stocks such as Bata India, Khadim India and Mirza International were trading with decent gains, after the GST Council lowered GST rates on footwear below Rs 1,000 to Rs 5 percent from 18 percent earlier.

On the flip side, Asian Markets were trading mixed, as concerns over trade tensions moved to the forefront at the meeting this weekend of the Group of 20 industrial nations. Back home, the BSE Sensex is currently trading at 36572.62, up by 76.25 points or 0.21% after trading in a range of 36491.83 and 36630.82. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.67%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were FMCG up by 2.17%, Telecom up by 1.71%, Consumer Durables up by 1.15%, Basic Materials up by 1.13% and Power up by 0.87%, while Auto down by 0.96%, Energy down by 0.45%, IT down by 0.22%, Consumer Disc down by 0.22% and Metal down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 3.68%, Bharti Airtel up by 2.73%, Hindustan Unilever up by 2.28%, Adani Ports &SEZ up by 2.00% and NTPC up by 1.84%. On the flip side, Hero MotoCorp down by 6.38%, Bajaj Auto down by 4.30%, Wipro down by 3.04%, ONGC down by 1.17% and HDFC Bank down by 1.02% were the top losers.

Meanwhile, the industry chamber, Associated Chambers of Commerce and Industry of India (ASSOCHAM) has claimed that Corporate India is becoming more and more vulnerable to sudden policy change risks, emanating both at the Central and state levels . It also expressed view that any amendment in rules should involve stakeholders' consultation before being pronounced.

The industry chamber has stated that increase in truck axle load by the Centre and the Maharashtra Government directive on food and beverages in the cinema halls are the latest examples of the policy changes coming as a bolt from the blue for the corporates. Likewise, it noted that if there is one sector which is prone to policy changes and market disruptions, it is telecom, running through the entire value chain.

ASSOCHAM further observed that policy changes being brought by the Centre and states are coming not only from sectoral regulators but also government departments, shaking the established players. It added that the only issue is that there should be wider consultations before the changes are announced.
The CNX Nifty is currently trading at 11041.55, up by 31.35 points or 0.28% after trading in a range of 11010.95 and 11055.45. There were 34 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were UPL up by 12.72%, Bajaj Finserv up by 4.22%, ITC up by 3.69%, Bharti Airtel up by 2.74% and Hindustan Unilever up by 2.45%. On the flip side, Hero MotoCorp down by 7.43%, Bajaj Auto down by 4.90%, Wipro down by 2.99%, Tech Mahindra down by 2.61% and ONGC down by 1.20% were the top losers.

Asian Markets were trading mixed; Taiwan Weighted increased 14.78 points or 0.14% to 10,946.89, Hang Seng surged 4.77 points or 0.02% to 28,229.25, Shanghai Composite rose 27.32 points or 0.96% to 2,856.59, Jakarta Composite was up by 48.87 points or 0.83% to 5,921.65.

On the flip side, KOSPI decreased 19.88 points or 0.88% to 2,269.31, Straits Times dipped 2.97 points or 0.09% to 3,294.86 and Nikkei 225 was down by 300.89 points or 1.34% to 22,396.99.