Major indices trade at day’s high; Nifty jumps over 100 points

Major benchmarks fervently gained from strength to strength in the early noon session, with Nifty and Sensex trading at their intra-day high amid strong buying in Utilities, Bankex and Metal stocks. Markets rally was supported by gains in frontline blue chip stocks such as Power Grid and SBI. Broader indices too were trading in green. Amongst the Mid cap stocks, Shriram Transport Finance and Piramal Enterprises stocks were gaining the most and amongst the Small cap stocks Mindtree and HEG were gaining. The market breadth on the BSE was favoring positive trend; there were 1495 shares on the gaining side against 869 shares on the losing side, while 140 shares remained unchanged. Meanwhile, some support came in with a report stating that India and Singapore have signed the Second Protocol amending the Comprehensive Economic Cooperation Agreement (CECA) in order to boost bilateral trade. Besides, a private report highlighted that the Centre has lined up plans to raise a massive Rs 1.7 lakh crore via the extra-budgetary resources (EBR) route in the current fiscal, up 110% from FY18.

On the global front, all the Asian counters were trading in green, taking cues from record highs on Wall Street. Back home, on the sectoral front, stocks related to the Textile sector was in focus after a report stated that India’s textiles and clothing exports have surged 11% in July 2018 in comparison to same period of last year, on account of favourable government policies and rupee depreciation. In scrip specific development, Sundaram Finance surged on reporting 26% rise in Q1 net profit and Tata Motors gained on rolling out 1500th unit of Safari Storme GS800.

The BSE Sensex is currently trading at 38632.55, up by 380.75 points or 1.00% after trading in a range of 38416.73 and 38633.43. There were 29 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.87%, while Small cap index up by 0.76%.

The top gaining sectoral indices on the BSE were Utilities up by 1.61%, Bankex up by 1.57%, Metal up by 1.55%, PSU up by 1.51% and Power up by 1.44%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Power Grid up by 3.22%, Yes Bank up by 2.44%, SBI up by 2.36%, ICICI Bank up by 2.21% and Tata Motors - DVR up by 1.79%. On the flip side, Sun Pharma down by 0.69% and Hindustan Unilever down by 0.01% were the only losers.

Meanwhile, India’s textiles and clothing exports have surged 11% in July 2018 in comparison to same period of last year, on account of favourable government policies and rupee depreciation.  Rise in India’s textiles and apparel exports was mainly due to supportive government policies which prompted the government to expedite refund on state and Goods and Services Tax (GST) levies on raw materials.  Moreover, rupee depreciation against the dollar helped Indian exporters to expedite execution of orders and also receivables. However, in the first quarter of current financial year, textiles and clothing exports declined 17%.

Data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCIS) showed that total textiles and apparel exports came at Rs 196.36 billion ($2.86 billion) for July 2018 as compared to Rs 176.92 billion ($2.74 billion) for the corresponding month last year. Total textiles exports witnessed a jump of 15% to Rs 108.79 billion ($1.58 billion) for July 2018 versus Rs 94.29 billion ($1.46 billion) in the comparable month of previous year. India’s apparel exports recorded a jump of 6% to Rs 87.57 billion ($1.27 billion) for July 2018 as against Rs 82.63 billion ($1.28 billion) for the same month last year.

Besides, Chairman, Confederation of Indian Textile Industries (CITI) Sanjay Jain has said that the textiles and clothing sector in India is on the verge of turnaround. Their exports have jumped in 11% after a steep fall between April & July quarter. It seems the worst is over for India’s textiles and clothing industry.

The CNX Nifty is currently trading at 11670.80, up by 113.70 points or 0.98% after trading in a range of 11595.60 and 11670.90. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 3.22%, Hindalco up by 3.04%, SBI up by 2.55%, ICICI Bank up by 2.54% and Grasim Industries up by 2.51%. On the flip side, Sun Pharma down by 0.93%, Bharti Infratel down by 0.70%, Eicher Motors down by 0.70%, Dr. Reddys Lab down by 0.09% and Bajaj Auto down by 0.09% were the top losers.

All the Asian markets were trading in green; Straits Times increased 21.86 points or 0.68% to 3,234.86, Hang Seng surged 559.32 points or 1.98% to 28,231.19, Taiwan Weighted soared 92.86 points or 0.85% to 10,902.21, Jakarta Composite jumped 45.39 points or 0.75% to 6,014.14, KOSPI advanced 6.74 points or 0.29% to 2,299.95, Nikkei 225 increased 197.87 points or 0.87% to 22,799.64 and Shanghai Composite was down 45.12 points or 1.63% to 2,774.55.