Local equity benchmarks enticing traction have added some points on the streets, with Sensex gaining around 100 points and Nifty trading above their crucial 10,300 level, with banking stocks leading the gains amid positive Asian clues. FMCG and Healthcare counters were also on the priority list of the buyers. Among heavy-weights ICICI Bank, HDFC Bank and Adani Ports exhibited a smart performance. The rupee was trading firm against the dollar in early morning trade on increased selling of the US currency by exporters and banks amid easing crude prices. However, up-side remained capped, as some cautiousness prevailed on the streets with a report stating that India lost one spot to rank as the 9th most valuable nation brand in the world, falling for the second consecutive year in the list of most valuable nation brands, despite its brand value rising 5% from the previous year. Besides, a private report stated that despite creating a whopping 7,300 more millionaires during the 12 months to mid-2018, India’s wealth per adult is far below when compared with neighbouring nation China.
On the global front, Asian markets were trading in mostly in green, after Chinese stocks swung higher for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy, and BREXIT. Back home, in scrip specific development, Alembic Pharmaceuticals gained with its JV clearing first USFDA inspection at its Gujarat facility. Beside, NTPC traded higher on planning to start biomass co-firing at its thermal power stations.
The BSE Sensex is currently trading at 34417.85, up by 102.22 points or 0.30% after trading in a range of 34317.91 and 34748.69. There were 15 stocks advancing against 16 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index slipped 0.15%, while Small cap index was down by 1.08%.
The top gaining sectoral indices on the BSE were Bankex up by 0.84%, FMCG up by 0.48%, Healthcare up by 0.43% and Utilities was up by 0.24%, while Basic Materials down by 1.06%, Oil & Gas down by 0.86%, Metal down by 0.77%, Energy down by 0.75% and Realty was down by 0.66% were the top losing indices on BSE.
The top gainers on the Sensex were ICICI Bank up by 2.14%, HDFC Bank up by 1.66%, Adani Ports & SEZ up by 1.49%, Coal India up by 1.20% and Axis Bank was up by 1.18%. On the flip side, Yes Bank down by 3.03%, Tata Motors - DVR down by 2.34%, ONGC down by 1.80%, IndusInd Bank down by 1.59% and Tata Motors was down by 1.49% were the top losers.
Meanwhile, expressing cautiousness over recent depreciation of Indian currency and non-performing assets (NPAs) issue, former Reserve Bank of India (RBI) Governor Bimal Jalan has said that declining value of rupee and high NPAs continue to remain a cause for concern. Though, he also said government has launched several reforms, including the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and direct benefit transfer scheme, are good for the economy; and there is no doubt that the growth rates are one of the highest in emerging markets; inflation is low.
On the non-economic front, Jalan said the country is still suffering from mis-governance, civil protests in several states over different issues and non-secular announcements. He further said the government should adopt a cautious approach with regard to minimum support price as it also affects the price of food grains for consumption for poor people in rural and semi urban areas.
Regarding sustained fall in the value of rupee, former RBI Governor said ‘I would not say it (depreciation of rupee) is cause for worry per se, in the sense that we have enough resources but the movement in rupee's value in the last couple of months has been a matter of concern.’ However, he highlighted that the government has taken some measures to contain the fall of the rupee. Pointing out that NPAs is a problem, he expressed hope that bad loans issue is going to be resolved as the government has introduced IBC and also the RBI has announced some prompt corrective actions (PCA).
The CNX Nifty is currently trading at 10323.25, up by 19.70 points or 0.19% after trading in a range of 10289.70 and 10408.55. There were 24 stocks advancing against 26 stocks declining on the index.
The top gainers on Nifty were Indiabulls Housing Finance up by 6.13%, Bajaj Finance up by 2.72%, GAIL India up by 2.08%, HCL Tech up by 2.02% and ICICI Bank was up by 1.90%. On the flip side, Yes Bank down by 3.12%, BPCL down by 2.84%, Ultratech Cement down by 2.62%, IOC down by 2.29% and Hindalco down was by 1.98% were the top losers.
Asian markets were trading in mostly in green, KOSPI gained 5.62 points or 0.26% to 2,161.88, Taiwan Weighted rose 57.41 points or 0.58% to 9,976.67, Nikkei 225 surged 123.59 points or 0.55% to 22,655.67, Straits Times strengthened 10.25 points or 0.33% to 3,072.76, Hang Seng soared 654.93 points or 2.5% to 26,216.33 and Shanghai Composite was up by 106.40 points or 4% to 2,656.87.
On the other side, Jakarta Composite was down by 1.05 points or 0.02% to 5,836.24.
