Bourses trade near day’s high

Extending their gains, key equity benchmarks traded near intraday high points in late afternoon session, tracking firm European markets. Adding optimism on the street, Commerce and Industry Minister Suresh Prabhu said that the government is taking several steps, such as reducing regulatory burden and ensuring availability of adequate funds, for budding entrepreneurs to promote startup ecosystem in the country. Some comfort also came with private report stating that the Reserve Bank of India won't raise interest rates until at least April, much later than thought just one month ago and rise will probably be a ‘one-and-done.’ Traders paid no heed towards reports that Former Chief Economic Advisor Arvind Subramanian called demonetisation a massive, draconian, monetary shock that slowed economic growth to average 6.8% in the seven quarters following the move as against the 8% average growth recorded in six quarters before it. On the sectoral front, healthcare and agri stocks remained in focused, after Finance Minister Arun Jaitley made a case for developing a federal institution like GST Council in the healthcare and farm sector.

On the global front, European markets were trading in green, even though Germany's consumer confidence is set to slightly weaken at the end of the year as high inflation rates and global economic uncertainty weigh on households' sentiment. The survey results from the GfK showed that the forward-looking consumer confidence indicator is set to drop to 10.4 from 10.6 in November. The street had forecast a reading of 10.5. Asian markets were also trading in green, after Federal Reserve Chairman Jerome Powell said that US interest rates were just below neutral, making investors believe the Fed's three-year tightening cycle is drawing to a close. Investors also remained hopeful for de-escalation in trade tensions between the US and China at the G20 summit, though a substantive breakthrough is unlikely.

The BSE Sensex is currently trading at 36217.89, up by 500.94 points or 1.40% after trading in a range of 35946.24 and 36252.11. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.62%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Energy up by 1.91%, Metal up by 1.80%, Bankex up by 1.75%, Basic Materials up by 1.44% and Auto up by 1.39%, while IT down by 0.77%, TECK down by 0.55%, Utilities down by 0.48% and Power down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.63%, Vedanta up by 3.60%, Bajaj Auto up by 3.43%, Kotak Mahindra Bank up by 3.05% and Indusind Bank up by 3.02%. On the flip side, ONGC down by 2.00%, TCS down by 1.52%, Coal India down by 1.19%, NTPC down by 0.94% and Yes Bank down by 0.87% were the top losers.

Meanwhile, highlighting successful implementation of the Goods and Services Tax (GST), Finance Minister Arun Jaitley has said that India needs to develop federal institution like GST Council in the healthcare and farm sector, as he hopes that such a federal body in healthcare sector should face least resistance from states, since the welfare schemes would be implemented through the states, with Centre only coordinating it.

Jaitley pointed out that the states have their hospital, and the Centre is also establishing institutes of eminence across the country. The Centre has implemented Ayushman Bharat, and states also have similar schemes. Therefore, he expressed need to merge all these so that the benefit of these merged resources starts to benefit patient population of the country.

The minister also foresee the figure of beneficiaries of Ayushman Bharat health scheme would pick-up in next 3-4 years, so that the awareness that such a facility is available and this would lead to a far greater realisation and patients going to these institutions and institutions also improving in terms of expertise.

The CNX Nifty is currently trading at 10871.35, up by 142.50 points or 1.33% after trading in a range of 10782.35 and 10880.55. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.12%, Mahindra & Mahindra up by 3.73%, Vedanta up by 3.71%, Bajaj Auto up by 3.49% and Kotak Mahindra Bank up by 3.46%. On the flip side, HCL Tech. down by 2.37%, ONGC down by 2.28%, TCS down by 1.83%, Coal India down by 1.19% and NTPC down by 0.98% were the top losers.

Asian markets were trading mostly in green; Straits Times increased 16.91 points or 0.54% to 3,111.39, Nikkei 225 jumped 85.58 points or 0.38% to 22,262.60, KOSPI added 5.88 points or 0.28% to 2,114.10, Taiwan Weighted increased 1.05 points or 0.01% to 9,885.36 and Jakarta Composite rose 107.65 points or 1.77% to 6,098.90. On the flip side, Hang Seng decreased 231.53 points or 0.88% to 26,451.03 and Shanghai Composite was down by 34.30 points or 1.34% to 2,567.44.

All European markets were trading in green; UK’s FTSE 100 increased 49.97 points or 0.71% to 7,054.49, France’s CAC added 49.40 points or 0.98% to 5,032.64 and Germany’s DAX was up by 89.06 points or 0.78% to 11,387.94.