Bourses maintain upbeat mood in afternoon deals

Indian equity indices maintained their upbeat mood in afternoon session, as buying momentum in the equities persisted. Domestic sentiments remained firm with Asian Development Bank (ADB) retaining Indian growth forecast at 7.3 percent for the current fiscal and 7.6 percent for the next financial year 2019-20, amid rebounding exports and higher industrial & agricultural output. Additional support came with Industry body CII’s statement that the appointment of former bureaucrat Shaktikanta Das as the new Reserve Bank of India (RBI) Governor comes as a huge sentiment booster to the industry and expressed confidence that he will take urgent steps to address the liquidity squeeze in economy. Das was appointed as the new governor of the RBI, a day after his predecessor Urjit Patel’s resignation. Moreover, CII said that the government should consider permitting 100% foreign direct investment. Gains in Asian markets on signs of cooperation between the US and China on trade, also fuelled the uptrend. Shares of public sector undertaking (PSU) banks were in focus on hopes of relaxation of Prompt Corrective Action (PCA) norms for the state-owned banks. 

On the global front, Asian markets were trading in green, as US President Donald trump sounded upbeat about a trade deal with China. Back home, the BSE Sensex is currently trading at 35505.96, up by 355.95 points or 1.01% after trading in a range of 35167.47 and 35554.36. There were 29 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.95%, while Small cap index was up by 1.77%.

The top gaining sectoral indices on the BSE were Auto up by 3.06%, Realty up by 2.91%, Industrials up by 2.05%, Metal up by 1.90%, Capital Goods up by 1.86%, while there were no losers on the sectoral front.

The top gainers on the Sensex were Hero MotoCorp up by 5.62%, Tata Motors up by 4.77%, Yes Bank up by 4.45%, Tata Motors - DVR up by 4.36% and Tata Steel up by 3.23%. On the flip side, Reliance Industries down by 0.10% and Infosys down by 0.02% were the top losers.

Meanwhile, industry body the Confederation of Indian Industry (CII) has said that the appointment of former bureaucrat Shaktikanta Das as the new governor of the Reserve bank of India (RBI) comes as a bid sentiment booster to the industry. It also expressed confidence that Das will take urgent steps to address the liquidity squeeze in economy.

It also said the announcement enables a smooth transition process and ensures that stability will be maintained. It also said that the government, in selecting an experienced economic expert, has avoided disruption and imparted huge confidence to investors and industry.

CII further said that the industry was confident that the liquidity squeeze in the banking and non-banking financial sector, which is spilling over to the various segments of industry would be taken up with all urgency by Das and there would be seamless flow of credit to industry and trade, especially to the Micro- Small and Medium Enterprises (MSMEs).

The CNX Nifty is currently trading at 10656.90, up by 107.75 points or 1.02% after trading in a range of 10560.80 and 10675.25. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 5.41%, Tata Motors up by 4.84%, Yes Bank up by 4.36%, Indiabulls Housing Finance up by 3.85% and Tata Steel up by 3.46%. On the flip side, Dr. Reddys Lab down by 5.12%, Titan Co down by 1.24%, Bharti Infratel down by 0.63%, HPCL down by 0.61% and Zee Entertainment down by 0.28% were the top losers.

All Asian markets were trading in green; Nikkei 225 surged 454.73 points or 2.15% to 21,602.75, Jakarta Composite soared 33.60 points or 0.55% to 6,110.19, Straits Times advanced 33.16 points or 1.08% to 3,092.44, KOSPI rose 29.60 points or 1.44% to 2,082.57, Shanghai Composite gained 8.66 points or 0.33% to 2,602.75, Hang Seng increased 428.16 points or 1.66% to 26,199.83 and Taiwan Weighted was up by 109.41 points or 1.13% to 9,816.45.