Bulls tighten grip on Dalal Street; Sensex gains 320 points

Bulls tightened grip on Dalal Street in late afternoon session, with Sensex and Nifty gaining more than 300 and 200 points, respectively, aided by firm opening in European markets. The broader indices were also mirroring the larger peers with the gains of 1% each. Further, Consumer Durables gained the most in late noon deals, followed by Metal and FMCG, while Tata Motors - DVR emerged as top gainer on the BSE. Traders got comfort with Niti Aayog CEO Amitabh Kant’s statement that the government’s digitization initiative will bring more transparency in the system. Domestic sentiments also remained upbeat with a private monthly survey report revealing that after almost a year and half of disruptions in Indian economy due to demonetisation and the Goods and Services Tax (GST), the consumer sentiment is up in the month of July on all fronts from jobs, investments, health of the economy to personal finance. In July, the consumer sentiment surged by 2.3 points over last month, with the maximum rise of 3.6 points witnessed in employment confidence for jobs. On the sectoral front, food processing Companies stocks were trading higher, with a report that the foreign direct investment (FDI) in the food processing sector rose 24% in 2017-18 to $904.9 million.

On the global front, European markets were trading in green, as investors await US GDP data tonight and the outcome of Bank of Japan policy meeting next week for directional cues. US second-quarter GDP growth is expected to be anywhere between four and five percent, a very impressive number, thanks to the boost from the GOP tax cuts of late 2017. Asian markets were trading in green, despite International Monetary Fund (IMF) warned China against aggressive economic stimulus. IMF said that China must resist taking aggressive stimulus steps as it navigates troubled economic waters as they could add to excessive debt levels leading to an ‘abrupt adjustment’. Back home, in scrip specific development, Lupin gained after the company launched Desoximetasone Topical Spray, 0.25%, having received an approval from the United States Food and Drug Administration (USFDA) earlier.

The BSE Sensex is currently trading at 37305.13, up by 320.49 points or 0.87% after trading in a range of 37134.88 and 37327.00. 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 1.05%, while Small cap index was up by 1.00%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.50%, Metal up by 2.03%, FMCG up by 1.69%, Energy up by 1.65% and Oil & Gas up by 1.58%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 4.84%, ITC up by 4.53%, Tata Motors up by 3.48%, Tata Steel up by 2.94% and Hero MotoCorp up by 1.92%. On the flip side, Adani Ports & SEZ down by 1.26%, Hindustan Unilever down by 1.01%, Maruti Suzuki down by 0.77%, TCS down by 0.73% and Power Grid Corporation down by 0.68% were the top losers.

Meanwhile, highlighting various structural changes brought by the government, Niti Aayog CEO Amitabh Kant has said that the government’s digitization initiative will bring more transparency in the system and further gave an example that benefits of over 500 Government schemes is being directly credited in the accounts of the beneficiaries using the Direct Benefit Transfers (DBT).

Kant also mentioned that the government has done away with many of the obsolete rules to drive the ease of doing business. Besides, he said that complex rules and regulations operating in India in the past was a constraint and added that the country’s growth can only be sustainable only if it is inclusive. Further, he listed various factors like significant variation in inter-state and inter-district parameters, which are contributing to the unsustainable growth in India and expressed need to address them.

Talking about the success stories of various districts which have performed to bring their ranking up amongst these aspirational districts, Niti Aayog CEO said that there should be a team spirit among states and the Centre to achieve the growth on a sustainable basis.

The CNX Nifty is currently trading at 11270.15, up by 102.85 points or 0.92% after trading in a range of 11210.25 and 11271.75. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were ITC up by 5.15%, Titan up by 3.92%, Tata Motors up by 3.83%, Indian Oil Corporation up by 3.65% and Hindalco up by 3.56%. On the flip side, Dr. Reddy’s Lab down by 2.18%, Adani Ports & SEZ down by 1.40%, Bajaj Finserv down by 1.31%, TCS down by 1.00% and Hindustan Unilever down by 0.97% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite increased 40.80 points or 0.68% to 5,986.94, Taiwan Weighted surged 65.17 points or 0.59% to 11,075.78, KOSPI was up by 5.93 points or 0.26% to 2,294.99, Hang Seng rose 23.14 points or 0.08% to 28,804.28 and Nikkei 225 jumped 125.88 points or 0.55% to 22,712.75. On the flip side, Straits Times decreased 5.62 points or 0.17% to 3,322.98 and Shanghai Composite was down by 8.64 points or 0.3% to 2,873.59.

All European markets were trading in green; UK’s FTSE 100 was up by 17.22 points or 0.22% to 7,680.39, France’s CAC increased 0.78 points or 0.01% to 5,481.33 and Germany’s DAX gained 30.53 points or 0.24% to 12,839.76.