Sensex, Nifty hit fresh record highs in noon deals

Domestic key gauges are trading jubilantly to hit fresh record highs in noon deals, as traders took encouragement with International Monetary Fund’s (IMF) statement that India is on track to hold its position as one of the world’s fastest-growing economies as reforms start to pay off. Indian economy was described by Ranil Salgado, the IMF’s mission chief for India, as an elephant starting to run, with growth forecast at 7.3% in the fiscal year. However, IMF in its latest report also said that the Reserve Bank of India (RBI) will need to gradually tighten monetary policy further, in order to keep inflation in check. Buying in consumer durables and energy counters too aided sentiments, while blue-chip stocks like Tata Motors, ONGC and RIL trade with traction in noon deals.

Positive trade in Asian counters too are supporting sentiments with most of the major Asian peers trading in green as expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-US trade dispute. Back home, banking sector stocks edged higher despite report that Indian banks reported a total loss of about Rs 70,000 crore due to frauds during the last three fiscals up to March 2018. The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17 and 2017-18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively. In scrip specific developments,Inox Wind gained on reporting consolidated net profit of Rs 10.37 crore in Q1. However, AU Small Finance Bank declined despite reporting 24% rise in Q1 net profit.

The BSE Sensex is currently trading at 37860.16, up by 194.36 points or 0.52% after trading in a range of 37641.40 and 37882.34. 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 0.16%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.31%, Energy up by 1.11%, Industrials up by 0.92%, Capital Goods up by 0.75% and Bankex was up by 0.66%, while IT down by 0.21%, Power down by 0.18%, TECK down by 0.15% and Utilities was down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.28%, Tata Motors - DVR up by 2.10%, ONGC up by 1.97%, Reliance Industries up by 1.50% and Asian Paints up by 1.08%. On the flip side, Maruti Suzuki down by 0.66%, Bharti Airtel down by 0.63%, Vedanta down by 0.60%, Wipro down by 0.50% and Bajaj Auto down by 0.47% were the top losers.

Meanwhile, Minister of State for Finance Shiv Pratap Shukla has said Indian banks reported a total loss of about Rs 70,000 crore on account of the scams and frauds happened in recent three fiscal years. The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for FY16, FY17 and FY18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively.

However, the minister clarified that data of frauds is as per the year of reporting and not the year of occurrence of fraud or sanction of loan, letter of undertaking, which might be of an earlier period. Besides, he stated that gross advances by SCBs increased from Rs 25.03 lakh crore as on March 31, 2008, to Rs 68.75 lakh crore on March 31, 2014.

Admiring the stressed assets in the banking system, he stated that the spurt was on account of aggressive lending practices, wilful default, loan frauds, corruption in some cases and economic slowdown.  Additionally, he said as per RBI data, there were 139 borrowers with aggregate gross NPAs of more than Rs 1,000 crore.

The CNX Nifty is currently trading at 11442.70, up by 53.25 points or 0.47% after trading in a range of 11379.30 and 11449.35. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.31%, ONGC up by 2.06%, Reliance Industries up by 1.62%, Lupin up by 1.59% and Bajaj Finance up by 1.37%. On the flip side, HPCL down by 1.33%, Bharti Airtel down by 0.85%, Maruti Suzuki down by 0.80%, HCL Tech down by 0.79% and Tech Mahindra down by 0.72% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted surged 91.81 points or 0.83% to 11,075.25, Jakarta Composite gained 1.38 points or 0.02% to 6,092.63, Hang Seng increased 40.99 points or 0.14% to 28,289.87 and KOSPI was up by 1.29 points or 0.06% to 2,301.45. On the flip side, Nikkei 225 decreased 18.43 points or 0.08% to 22,644.31, Straits Times shed 24.99 points or 0.75% to 3,315.01 and Shanghai Composite was down by 30.33 points or 1.1% to 2,749.04.