Bulls tighten grip on the Dalal Street

Bulls have tightened grip on Dalal Street in late afternoon session, with both the larger peers garnering gains of 0.93% each. Domestic sentiments were got boost with Ministry of Commerce & Industry’s report showing that the growth of manufacturing sector as measured by the Index of Industrial Production (IIP) with base year 2011-12, has been consistently increasing over the past three years and the current year. As per data report, manufacturing sector grew at the rate of 5.6% during April-October period (Provisional), while in 2017-18, the growth rate was 4.6% as against 4.4% in 2016-17. Firm European opening along with gains led by broader indices helped the markets to continue rally in late noon deals. Investors paid no heed towards RBI’s report that Indian companies borrowed $1.99 billion from overseas markets in the month of November 2018 through external commercial borrowing (ECB), 34% lower than a year ago. The borrowings though ECBs were $3.02 billion in November last year.

On the global front, European markets were trading in green tracking overnight gains on Wall Street and a recovery in crude oil prices. Asian markets were also trading in green. Back home, on the sectoral front, healthcare stocks were trading higher, aided by CII’s statement that National Medical Devices Promotion Council, set up under the Department of Industrial Promotion and Policy, will help promote growth of the sector and pave way for affordable access to good quality pharma instruments to people, while metal stocks also gained, despite Ministry of Steel’s report that India’s exports declined by 23.1 percent to 0.598 million tonnes during October 2018 over last year.

The BSE Sensex is currently trading at 36140.05, up by 332.77 points or 0.93% after trading in a range of 35911.99 and 36183.34. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.87%, while Small cap index was up by 0.77%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.25%, Healthcare up by 1.29%, Basic Materials up by 1.23%, Capital Goods up by 1.20% and Oil & Gas up by 1.16%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Sun Pharma up by 3.41%, Yes Bank up by 2.18%, HDFC up by 2.03%, Vedanta up by 1.89% and ICICI Bank up by 1.67%. On the flip side, Coal India down by 3.02%, Bajaj Auto down by 0.36%, Asian Paints down by 0.22% and TCS down by 0.18% were the top losers.

Meanwhile, Indian companies borrowed $1.99 billion from overseas markets in the month of November 2018 through external commercial borrowing (ECB), 34% lower than a year ago. The borrowings though ECBs were $3.02 billion in November last year.

According to the Reserve Bank of India (RBI) data report, ECB stood at $1,996,772,358 and of the total ECB borrowing, $1,296,772,358 raised via Automatic Route by various companies, while REC was the only company to raise $700,000,000 through the approval route of the external commercial borrowing. In November this year, no money was borrowed by issuing RDBs, also known as masala bonds.

The report further found that the companies among taking the ECB window were Power Finance Corporation, Bharat Petroleum Corporation, Siemens Financial Services, Hitachi Automotive Systems, Sarla Performance Fibers and Fermenta Biotech.

The CNX Nifty is currently trading at 10880.50, up by 100.70 points or 0.93% after trading in a range of 10817.15 and 10891.75. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Titan up by 4.08%, Sun Pharma up by 3.79%, Indian Oil Corporation up by 3.40%, Zee Entertainment up by 2.43% and Yes Bank up by 2.25%. On the flip side, Coal India down by 3.28%, Bharti Infratel down by 1.35%, Asian Paints down by 0.63%, Bajaj Auto down by 0.55% and TCS down by 0.17% were the top losers.

Asian markets were trading in mostly in green; Straits Times gained 15.88 points or 0.52% to 3,060.62, Shanghai Composite rose 11.42 points or 0.46% to 2,494.51, Hang Seng increased 32.68 points or 0.13% to 25,511.56, KOSPI rose 12.60 points or 0.62% to 2,041.04, Jakarta Composite soared 13.33 points or 0.22% to 6,203.97 and Taiwan Weighted strengthened 85.85 points or 0.89% to 9,727.41. On the flip side, Nikkei 225 slipped 62.85 points or 0.31% to 20,014.77.

All European markets were trading in green; UK’s FTSE 100 gained 95.76 points or 1.45% to 6,680.44, France’s CAC rose 61.88 points or 1.35% to 4,660.49 and Germany’s DAX was up by 157.44 points or 1.52  to 10,538.95.