Sensex, Nifty at day’s high

Extending their gains, key Indian bourses traded near their intraday high points in late afternoon session, aided by firm opening of European markets. Trade got boost as the Central Statistics Office (CSO) in its First Advance Estimates of National Income, 2018-19, stated that India’s economic growth is expected to grow at 7.2% in the current fiscal year (FY19) from 6.7% in the previous fiscal, mainly due to improvement in the performance of agriculture and manufacturing sectors. Some comfort also came with a private report expecting that the government to maintain fiscal deficit target of 3.2-3.3 percent. Traders overlooked that Reserve Bank of India (RBI) governor Shaktikanta Das warned against farm loan waivers, saying a generalised loan waiver adversely hits the credit culture and suggested that states should look at their fiscal position before announcing these amnesty schemes.

On the sectoral front, banking stocks were trading in green, with RBI governor Shaktikanta Das’ expressing satisfaction over performance of the banking sector saying non-performing assets (NPAs) have declined, particulary that of public sector banks (PSU banks).  However, realty stocks were trading lower, despite reports that housing sales rose six per cent in 2018 in eight major cities as developers reduced prices and offered indirect discounts to lure customers. Sale of residential units increased in six cities-Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad and Ahmedabad; but declined in two cities-Kolkata and Pune.

On the global front, European markets were trading green, as Eurozone retail sales grew for a second straight month in November and at a faster-than-expected pace, supported by lower oil prices and rising wages. The figures from Eurostat showed that retail sales rose a seasonally adjusted 0.6% from October, when sales increased at the same pace. October sales growth was earlier reported as 0.3%. The street overlooked survey data of the behavioral research institute Sentix which stated that Eurozone's investor confidence deteriorated for a fifth straight month in January to its lowest level in over four years, but the easing was less severe than expected. The Sentix investor confidence index dropped to -1.5 from -0.3, marking the lowest level since December 2014. But, Asian markets were trading mixed.

The BSE Sensex is currently trading at 36029.94, up by 179.78 points or 0.50% after trading in a range of 35753.95 and 36037.35. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.15%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Telecom up by 1.35%, Bankex up by 1.14%, Healthcare up by 0.98%, Auto up by 0.73% and PSU up by 0.71%, while Capital Goods down by 0.21%, Consumer Durables down by 0.18%, Utilities down by 0.13%, Power down by 0.04% and Industrials down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 3.99%, ICICI Bank up by 3.07%, SBI up by 2.91%, Yes Bank up by 2.25% and Tata Motors up by 2.11%. On the flip side, Kotak Mahindra Bank down by 1.09%, Hindustan Unilever down by 0.71%, HDFC Bank down by 0.71%, Bajaj Finance down by 0.69% and Mahindra & Mahindra down by 0.64% were the top losers.

Meanwhile, after Central Statistics Office’s (CSO) estimation on GDP growth, Economic Affairs Secretary Subhash Chandra Garg has described the 7.2% GDP growth projection for 2018-19 as very healthy and noted that India remains to be the fastest growing economy in the world.

Garg highlighted that increase in gross fixed capital formation (GFCF) indicates a pickup in investment activities. He pointed towards impressive GVA growth seen in several industry segments during 2018-19 compared to 2017-18. He further listed the facts and figures about the growth seen in industry segments in FY19 as compared to FY18  such as manufacturing at 8.3% against 5.7%, Construction at 8.9% against 5.7% and Electricity, Gas, Water Supply and Utilities at 9.4% against 7.2%.

Meanwhile, CSO in its First Advance Estimates of National Income, 2018-19, reported that India’s economic growth is expected to grow at 7.2% in the current fiscal year (FY19), from 6.7% in the previous fiscal, mainly due to improvement in the performance of agriculture and manufacturing sectors.

The CNX Nifty is currently trading at 10813.05, up by 41.25 points or 0.38% after trading in a range of 10733.25 and 10818.45. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 3.64%, ICICI Bank up by 3.10%, SBI up by 2.63%, Eicher Motors up by 2.54% and Indiabulls Housing Finance up by 2.52%. On the flip side, Kotak Mahindra Bank down by 1.27%, Zee Entertainment down by 1.13%, UPL down by 1.08%, HDFC Bank down by 0.79% and Hindustan Unilever down by 0.78% were the top losers.

Asian markets were trading mixed, KOSPI fell 11.83 points or 0.58% to 2,025.27, Jakarta Composite dropped 28.87 points or 0.46% to 6,258.35, Taiwan Weighted dropped 26.70 points or 0.28% to 9,563.60 and Shanghai Composite declined 6.62 points or 0.26% to 2,526.47. On the flip side, Nikkei 225 surged 165.07 points or 0.82% to 20,204.04, Hang Seng increased 39.75 points or 0.15% to 25,875.45 and Straits Times was up by 19.24 points or 0.62% to 3,122.04.

All European markets were trading in green; UK’s FTSE 100 rose 38.50 points or 0.57% to 6,849.38, Germany’s DAX gained 64.35 or 0.60% points to 10,812.16 and France’s CAC was up by 39.82 points or 0.84% to 4,758.99.