Local benchmarks turn positive in morning deals

Local equity benchmarks erased all the early losses to turn positive in morning session, with Sensex and Nifty trading above their crucial 36100 and 10,800 levels, respectively. Inventors were seen piling positions in Realty, Energy and FMCG sector, while selling was witnessed in Capital Goods, Auto and Metal sector stocks. Sentiment on the street improved on CRISIL Ratings’ report that India’s growth rate is likely to inch up to 7.3 per cent in 2019-20, provided that there are normal rains and a stable political outcome of the general elections. Some support came with a report that fund inflow into the Indian capital market through participatory notes (P-notes) climbed to Rs 79,513 crore till the end of December 2018 in the current financial year, amid Sebi relaxing norms for clubbing of investment limits by FPIs. Traders ignored a report that the goods and services tax (GST) collected in January (for December) is seen to be the lowest in the current fiscal. While the average collections during April-December were Rs 96,800 crore a month, the collections in January are around Rs 93,000 crore.

On the global front, Asian markets were trading mostly in green, as positive US earnings reports reassured investors that the world’s largest economy was on track. Back home, traders took note of a report that India and China have begun affecting the world economy much more and that needs to be taken into account for having a relook at the global trade and financial systems.

The BSE Sensex is currently trading at 36170.15, up by 61.68 points or 0.17% after trading in a range of 35996.68 and 36178.36. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.12%, while Small cap index was down by 0.06%.

The top gaining sectoral indices on the BSE were Realty up by 2.47%, Energy up by 1.12%, FMCG up by 0.64%, PSU up by 0.55% and Oil & Gas was up by 0.46%, while Industrials down by 0.42%, Metal down by 0.40%, Basic Materials down by 0.40%, Capital Goods down by 0.36% and Auto was down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.46%, Power Grid up by 1.45%, SBI up by 1.19%, ITC up by 1.12% and Asian Paints was up by 0.90%. On the flip side, Tata Motors down by 1.86%, Tata Motors - DVR down by 1.57%, Yes Bank down by 1.55%, Tata Steel down by 0.82% and Infosys was down by 0.81% were the top losers.

Meanwhile, Expressing optimism about Indian economy, the United Nations in its World Economic Situation and Prospects (WESP) 2019 report has said it is expected that India's economy will grow at 7.4 per cent during the current financial year (FY19) and improve to 7.6 per cent in the next fiscal (FY20). It also expects India's gross domestic product (GDP) to expand by 7.4 per cent in FY21.

It underlined that growth continues to be underpinned by robust private consumption, a more expansionary fiscal stance and benefits from previous reforms.  The report further said a more robust and sustained recovery of private investment would remain crucial to lift medium-term growth.

Beside, referring to the global economy, it stated it would continue to grow at a steady pace of around 3 per cent in 2019 and 2020 amid signs that growth has peaked. However, a worrisome combination of development challenges could further undermine growth.

The CNX Nifty is currently trading at 10844.05, up by 12.55 points or 0.12% after trading in a range of 10798.65 and 10848.85. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 1.82%, Power Grid up by 1.29%, ITC up by 1.19%, Indian Oil up by 1.18% and Grasim Industries was up by 1.03%. On the flip side, UPL down by 2.27%, Tata Motors down by 2.05%, Bharti Infratel down by 1.79%, Yes Bank down by 1.75% and Tata Steel was down by 1.23% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 34.78 points or 0.13% to 27,042.98, Taiwan Weighted strengthened 16.92 points or 0.17% to 9,863.32, Straits Times advanced 15.17 points or 0.48% to 3,186.28, Shanghai Composite gained 13.18 points or 0.51% to 2,594.18, Jakarta Composite soared 12.85 points or 0.2% to 6,464.02 and KOSPI rose 10.50 points or 0.49% to 2,138.28. On the other flip Nikkei 225 slipped 34.94 points or 0.17% to 20,558.78.