Benchmarks continue to show optimistic trend

Indian equity benchmarks continued to show optimistic trend in morning session, with Sensex and Nifty gaining around 180 and 60 points, respectively, as investors continued to take encouragement from 9-month low retail inflation data. Buying activity remained optimistic across all sectors on improved investor confidence after a report stated that it is major relief to the consumers, as retail inflation in July dipped to a 9-month low of 4.17% due to plunge in prices of vegetables and fruits. In June, retail inflation was 4.9%. The June inflation number was revised downwards to 4.92% from 5% earlier. Indices like Realty and Basic Materials were, as usual, inched higher with the up-move on the benchmarks. Buoyant Mid-Caps and Small-Caps were also trading with over half a percent gains. Among heavy-weights Axis Bank, Tata Steel and Yes Bank exhibited a smart performance with gaining over 1.30%.

On the global front, Asian markets were trading mixed, as some regional markets bounced back one day after declining over jitters related to economic uncertainty in Turkey. Trader were taking note of a report that China’s economy is showing further signs of cooling as the US prepares to impose even tougher trade tariffs, with investment in the first seven months of the year slowing to a record low and retail sales softening. Back home, in scrip specific development, Aditya Birla Capital surged on reporting 26% rise in Q1 consolidated net profit. Besides, Minda Corporations surged with its flagship company -- Spark Minda, Ashok Minda Group setting up lockset sub-assembly unit.

The BSE Sensex is currently trading at 37822.97, up by 178.07 points or 0.47% after trading in a range of 37689.71 and 37841.68. 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 0.51%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Realty up by 1.91%, Basic Materials up by 0.87%, Consumer Disc up by 0.86%, Metal up by 0.81%, FMCG up by 0.77%, while Capital Goods down by 0.15% were the only losing index on BSE.

The top gainers on the Sensex were Axis Bank up by 2.10%, Tata Steel up by 1.55%, Yes Bank up by 1.36%, Asian Paints up by 1.17% and ITC was up by 1.10%. On the flip side, Larsen & Toubro down by 0.56%, Vedanta down by 0.46%, NTPC down by 0.44%, Indusind Bank down by 0.32% and Adani Ports & SEZ was down by 0.20% were the top losers.

Meanwhile, Petroleum Planning and Analysis Cell (PPAC) of the oil ministry in its latest data has showed India’ fuel demand surged 7.3 percent in July 2018, driven by sharp rise in petrol and diesel consumption. In the month of July, fuel consumption totalled 17.05 million tonnes as compared to 15.88 million tonnes in the same month last year. The rise comes on back of 8.6 percent growth in June when demand totalled 17.99 million tonnes.

During the month of July, petrol sales were up 7.8 percent at 2.3 million tonnes, while diesel consumption was up 4.8 percent to 6.6 million tonnes. In the previous month (June), petrol sales were up almost 15 percent, while diesel showed a flatish growth.

Additionally, while Rs 3.8 a litre hike in petrol and Rs 3.38 in diesel propelled rates to hit an all-time high of Rs 78.43 a litre and Rs 69.31, respectively, on May 29 in Delhi, prices cooled off in subsequent months. Petrol price was down to Rs 76.31 by the end of July and diesel to Rs 67.82. The drop in oil prices was also one of the factors that fuelling rise in consumption. Besides, during July, jet fuel or aviation turbine fuel (ATF) sale was up 12.7 percent at 6,72,000 tonne.

The CNX Nifty is currently trading at 11412.65, up by 56.90 points or 0.50% after trading in a range of 11370.80 and 11417.65. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.73%, Bajaj Finance up by 2.27%, Axis Bank up by 2.12%, Tech Mahindra up by 1.64% and Tata Steel was up by 1.60%. On the flip side, UPL down by 1.27%, Indiabulls Housing Finance down by 0.92%, Vedanta down by 0.88%, Larsen & Toubro down by 0.71% and HPCL was down by 0.70% were the top losers.

Asian markets were trading mixed; Straits Times slipped 5.64 points or 0.17% to 3,239.70, Hang Seng dropped 255.94 points or 0.92% to 27,680.63, Shanghai Composite declined 14.06 points or 0.51% to 2,771.81 and Jakarta Composite was down by 25.10 points or 0.43% to 5,836.15.

On the other hand; KOSPI gained 10.32 points or 0.46% to 2,258.77, Taiwan Weighted surged 66.22 points or 0.61% to 10,815.14, Nikkei 225 was up by 410.73 points or 1.84% to 22,268.16.