Benchmarks continue northward journey in afternoon deals

Local equity markets continued their northward journey in afternoon session, as buying momentum in the equities persisted. Traders remained in jubilant mood with Union Minister of Commerce and Industry and Civil Aviation Suresh Prabhu’s statement that country’s exports rose by 9.8% in the financial year 2017-18, which is the highest rate of growth in last six years. He added that this positive growth in exports has taken place at a time when there is a lot of negative headwinds globally. Some support also came with a private report that the global economy is expected to achieve an annual GDP growth rate, as measured in constant dollars, of 3.7% between 2018-2020 before dipping to 3.6% between 2021-2023 and, in turn, pass the $100 trillion mark around 2022. Besides, recovery in the rupee value against dollar along with encouraging earnings by some blue-chip firms including ICICI Bank and Dr. Reddy’s Laboratories also helped in building positive sentiments. On the sectoral front, Pharma stocks were trading higher with ratings agency Crisil’s statement that after two consecutive years of single-digit expansion, big Indian drug firms are expected to return to double-digit growth in the current fiscal aided by recovery in US sales, weakening of the rupee and revival of domestic demand. 

On the global front, Asian stocks were trading mixed, after Wall Street extended its slide, fueling concern about the global market outlook. Back home, the BSE Sensex is currently trading at 33641.37, up by 292.06 points or 0.88% after trading in a range of 33341.80 and 33671.99. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 2.13%, while Small cap index was up by 1.26%.

The top gaining sectoral indices on the BSE were Healthcare up by 3.44%, PSU up by 2.56%, Capital Goods up by 2.24%, Industrials up by 2.20% and Utilities up by 2.07%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were ICICI Bank up by 8.81%, SBI up by 6.49%, Axis Bank up by 6.45%, Adani Ports &SEZ up by 4.57% and Tata Motors - DVR up by 3.83%. On the flip side, Indusind Bank down by 3.67%, Kotak Mahindra Bank down by 3.16%, HDFC Bank down by 2.71%, Yes Bank down by 2.60% and Hindustan Unilever down by 1.93% were the top losers.

Meanwhile, the Prime Minister's Economic Advisory Council (PMEAC) Chairman Bibek Debroy has said that the four-rate slab structure of the Goods and Services Tax (GST) regime is likely to be reduced to three as the process of rationalising India's new indirect tax regime proceeds further.

The PMEAC Chairman indicated that only very few countries including India, Canada and perhaps Australia have implemented GST follow the principle of dual GST whose terminal role from an economists point of view is to have a single tax structure. Noting that a multiple tax structure makes GST implementation an extremely difficult process, he said the consensus on this overhaul of India's indirect tax regime was that the reform, although not perfect, should be rolled out and it (GST) could be tweaked as we go along. Besides, he pointed out that countries had taken as long as 10 years for their GST systems to stabilise.

The GST, which replaced 17 central and state levies including factory-gate, excise duty, service tax and local sales tax or VAT, is India's biggest tax reform in 70 years of independence and will help modernise Asia's third largest economy. 

The CNX Nifty is currently trading at 10119.60, up by 89.60 points or 0.89% after trading in a range of 10020.35 and 10129.95. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 8.71%, Axis Bank up by 6.52%, SBI up by 6.49%, Dr. Reddys Lab up by 5.01% and Adani Ports &SEZ up by 4.64%. On the flip side, Indusind Bank down by 3.79%, Kotak Mahindra Bank down by 3.21%, HDFC Bank down by 2.71%, Yes Bank down by 2.63% and Hindustan Unilever down by 1.88% were the top losers.

Asian stocks were trading mixed; KOSPI decreased 31.10 points or 1.56% to 1,996.05, Shanghai Composite decreased 66.55 points or 2.63% to 2,532.30, Nikkei 225 decreased 34.80 points or 0.16% to 21,149.80 and Jakarta Composite decreased 19.30 points or 0.33% to 5,765.62. On the flip side, Hang Seng increased 5.50 points or 0.02% to 24,723.13, Taiwan Weighted increased 27.14 points or 0.29% to 9,516.32 and Straits Times increased 11.61 points or 0.39% to 2,983.63.