Local equities continue optimistic trend

Local equity benchmarks continued their optimistic trend in the morning session, gaining over half a percent in initial trade. Tata Steel, ITC and Adani Ports were the prime gainers among heavy-weights, pushing Sensex and Nifty higher. Likewise, Metal, Healthcare and FMCG have also elevated with gains on their respective front line stocks. Traders took encouragement from Niti Aayog vice chairman Rajiv Kumar’s statement that the falling rupee is not a cause of worry as it is getting back to its natural value. The rupee rose by about 17% during the last three years. Since the beginning of this year, rupee has declined by only 9.8%. So, it has recovered. Traders overlooked a report that a foreign brokerage warned of worsening fiscal position due to poll-related spending spree before next May when the new Parliament has to be instituted. It has projected the consolidated fiscal deficit for FY19 at 6.5% of GDP against a budgeted 5.9%, which is only 10 bps lower than FY18. Besides, India Ratings and Research has said that Indian economy is projected to grow at 7.2% in 2018-19. The rating agency earlier forecasted India’s economic growth at 7.4% for current fiscal.

On the global front, Asian markets were trading mostly in green, as China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week. Back home, in scrip specific development, Cosmo Films gained over 2% on launching CPP metalized film with high metal bond. Besides, AstraZeneca Pharma surged over 3% on receiving marketing permission for Olaparib.

The BSE Sensex is currently trading at 37922.98, up by 259.42 points or 0.69% after trading in a range of 37840.16 and 37955.97. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.89%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were Metal up by 1.48%, Healthcare up by 1.47%, Basic Materials up by 1.34%, FMCG up by 1.05% and Industrials was up by 1.00%, while Telecom down by 0.29%, Utilities down by 0.13% and Oil & Gas was down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.19%, ITC up by 2.05%, Adani Ports & SEZ up by 2.04%, Vedanta up by 1.97% and Kotak Mahindra Bank was up by 1.61%. On the flip side, Bharti Airtel down by 1.32%, ONGC down by 0.55%, Wipro down by 0.45%, Bajaj Auto down by 0.41% and Power Grid was down by 0.29% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that Bank credit surged by 12.70 percent to Rs 86,79,741 crore in the fortnight to August 3,2018. In the year-ago fortnight, bank advances was at Rs 77,01,926 crore. The increase in advances in the reporting fortnight was higher than the growth registered in the previous fortnight ending July 20 when it had risen by 12.44 percent to Rs 86,13,164 crore.

During the reporting fortnight, bank deposits grew by 8.21 percent to Rs 1,15,83,058 crore from Rs 1,07,04,112 crore in the period ending August 4, 2017. In June, the non-food credit rose 11.1 percent as against 4.8 percent in the same month last year. Loans to agriculture and allied activities slowed to 6.5 percent in June from 7.5 percent a year ago. Personal loan segment grew 17.9 percent in June up from 14.1 percent in June last year.

In the fortnight ended June 22, 2018, RBI’s data had highlighted that Bank credit grew by 12.84 per cent to Rs 86,16,408 crore in the fortnight ended June 22. In the year-ago fortnight, bank loans stood at Rs 76,35,689 crore. The growth in advances was slightly higher than the growth registered in the previous fortnight ended June 8. It had risen by 12.67 per cent to Rs 85,98,703 crore.

The CNX Nifty is currently trading at 11464.05, up by 79.00 points or 0.69% after trading in a range of 11431.80 and 11469.85. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.13%, Tata Steel up by 2.75%, Lupin up by 2.44%, Adani Ports & SEZ up by 2.15% and Titan Company was up by 1.99%. On the flip side, GAIL India down by 1.87%, Bharti Airtel down by 1.34%, ONGC down by 0.82%, Power Grid down by 0.59% and Bajaj Auto was down by 0.42% were the top losers.

Asian markets were trading in mostly in green; Straits Times gained 12.05 points or 0.37% to 3,223.98, Hang Seng surged 145.63 points or 0.53% to 27,245.69, KOSPI strengthened 8.07 points or 0.36% to 2,248.87, Taiwan Weighted rose 18.35 points or 0.17% to 10,702.25 and Nikkei 225 was up by 90.55 points or 0.41% to 22,282.59. On the other side, Shanghai Composite was down by 11.55 points or 0.43% to 2,693.64.