Benchmarks trade jubilantly in early deals

Indian equity benchmarks made an optimistic start and are trading jubilantly in early deals with frontline gauges recapturing their crucial 36,400 (Sensex) and 10,900 (Nifty) levels. Sentiments remained up-beat with Minister of State for Agriculture Parshottam Rupala’s statement that the government will soon announce a package for farmers to boost their income, amid speculations that the Centre is considering various measures to address distress in the farm sector. Traders also took some encouragement with apex exporters’ body, Federation of Indian Export Organisations (FIEO) stating that the tariff war between the US and China is benefitting India as its exports to the neighbouring country have increased by about 32 per cent during the June-November 2018 period to $8.46 billion. Exports to China had stood at $6.37 billion in June-November 2017. Growth in exports to China is beneficial for India as it has huge trade deficit with the neighbouring country.

Global cues too remained supportive with Asian markets rallying at this point of time despite fresh overnight uncertainties about US-China trade negotiations. The US markets ended mixed on Thursday following downbeat comments from Commerce Secretary Wilbur Ross that US is miles and miles from a trade deal with China coupled with the failure of congressional votes to reopen the government.

Back home, banking sector stocks remained in focus with report that Piyush Goyal, who has been given an additional charge of the finance ministry in the absence of Arun Jaitley, is scheduled to meet chiefs of the state-owned banks on January 28 to review financial performance of the banks. In scrip specific developments, Eicher Motors gained with Royal Enfield inking MoU with the Govt of Tamil Nadu and Bharti Infratel edged higher on settling tower exits with four operators for Rs 3,800 crore.

The BSE Sensex is currently trading at 36439.01, up by 243.91 points or 0.67% after trading in a range of 36216.41 and 36474.48. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.31%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were Telecom up by 1.34%, Energy up by 0.92%, IT up by 0.84%, TECK up by 0.84% and Metal up by 0.77%, while there were no losers on the BSE sectora front.

The top gainers on the Sensex were Yes Bank up by 7.67%, HCL Tech up by 1.77%, Vedanta up by 1.42%, Axis Bank up by 1.29% and TCS up by 1.23%. On the flip side, Hero MotoCorp down by 1.08%, ICICI Bank down by 0.49%, HDFC Bank down by 0.14% and Bajaj Auto down by 0.12% were the top losers.

Meanwhile, amid huge trade deficit with the neighbouring country, apex exporters body, Federation of Indian Export Organisations (FIEO) has stated that India’s exports to China jumped 32% to $8.46 billion in the June-November of 2018, as compared to $6.37 billion in June-November 2017. It added that the country was mainly benefited from the tariff war between the US and China.

FIEO President Ganesh Kumar Gupta said commodities that have exhibited high growth during the period to China include petroleum products, chemicals, cotton yarn, plastic raw material, and marine products. Growth in exports to China is beneficial for India as it has huge trade deficit with the neighbouring country. Trade deficit with China increased to $63.12 billion in 2017-18 from $51.11 billion in 2016-17.

Besides, India is taking several steps to promote shipments to China. Recently, it has managed to export agricultural goods such as non-basmati rice to China. Meanwhile, in June and September 2018, the US announced high customs duties on several Chinese goods. In retaliation, China also raised levies on American goods.

The CNX Nifty is currently trading at 10920.05, up by 70.25 points or 0.65% after trading in a range of 10858.20 and 10931.70. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 6.87%, Bharti Infratel up by 3.38%, HCL Tech. up by 1.96%, UPL up by 1.93% and Indiabulls Housing up by 1.91%. On the flip side, Ultratech Cement down by 3.05%, Hero MotoCorp down by 1.20%, Zee Entertainment down by 0.92%, JSW Steel down by 0.69% and ICICI Bank down by 0.42% were the top losers.

All the Asian markets are trading in green; Nikkei 225 surged 239.12 points or 1.16% to 20,813.75, Straits Times gained 26.88 points or 0.84% to 3,217.61, Hang Seng soared 363.00 points or 1.34% to 27,483.98, Taiwan Weighted jumped 89.71 points or 0.91% to 9,966.83, KOSPI increased 27.96 points or 1.30% to 2,172.99, Jakarta Composite added 21.08 points or 0.33% to 6,487.74 and Shanghai Composite was up by 14.89 points or 0.57% to 2,606.58.