Local equities hold positive momentum

Mirroring strong global cues, local equity benchmarks continued to show a positive trend in morning session, with gains of over half a percent. Domestic sentiment was buoyed on apex exporters body FIEO’s report that the tariff war between the US and China is benefitting India as its exports to the neighbouring country have increased by about 32% during the June-November 2018 period to $8.46 billion. Sentiments also remained upbeat with a private report that India’s economy is expected to expand by 7.6% in 2019 vis-a-vis a 7.4% growth in 2018 on the back of consumption, reforms and fiscal policies, even as neighbouring Pakistan slips in growth on account of the balance of payments problem. Traders took encouragement with a report that India and Mauritius will sign a comprehensive economic cooperation agreement which will stimulate trade and investment in the region. However, inventors overlooked United Nations head Antonio Guterres’ statement that trade tensions impacting the world economy were essentially a ‘political problem’ and warned that a fragmented response to global challenges was a recipe for disaster.

On the global front, Asian markets were trading in green, putting them on course to end a shaky week on a positive note as investors look ahead to crucial trade talks between China and the United States at the end of the month. Back home, agricultural stocks were in focus as Minister of State for Agriculture Parshottam Rupala stated 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.

The BSE Sensex is currently trading at 36424.18, up by 229.08 points or 0.63% after trading in a range of 36216.41 and 36474.48. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.13%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Telecom up by 1.76%, Energy up by 1.09%, FMCG up by 0.80%, TECK up by 0.75% and IT was up by 0.72%, while Realty down by 0.93%, Utilities down by 0.08% and Basic Materials was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 5.96%, HCL Tech. up by 2.03%, Bharti Airtel up by 1.51%, TCS up by 1.42% and Kotak Mahindra Bank was up by 1.34%. On the flip side, ICICI Bank down by 1.63%, Hero MotoCorp down by 1.16%, Asian Paints down by 0.27%, NTPC down by 0.14% and Infosys was down by 0.03% were the top losers.

Meanwhile, with an aim to boost formers’ income, Minister of State for Agriculture Parshottam Rupala has said the government will soon announce a relief package amid speculations that the Centre is considering various measures to address distress in the farm sector. However, he did not clarify whether the relief package will be part of the upcoming Budget on February 1 or it will be announced before that.

The minister also said the government is focusing on increasing area under cultivation between Rabi (winter-sown) and Kharif (summer-sown) seasons so that farmers income can be increased. He noted that this is the first time a campaign has been initiated to focus on these aspects.

Besides, talking on irrigation, he highlighted that out of about 141 m.Ha of net area sown in the country, about 65 million hectare (or 45%) is presently covered under irrigation. Substantial dependency on rainfall makes cultivation in unirrigated areas a high risk, less productive profession. Empirical evidences suggest that assured or protective irrigation encourages farmers to invest more in farming technology and inputs leading to productivity enhancement and increased farm income. He added that that Government of India is committed to accord high priority to water conservation and its management.

The CNX Nifty is currently trading at 10911.50, up by 61.70 points or 0.57% after trading in a range of 10858.20 and 10931.70. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 5.13%, Bharti Infratel up by 4.47%, HCL Tech. up by 2.19%, Indiabulls Housing Finance up by 1.72% and UPL was up by 1.67%. On the flip side, Ultratech Cement down by 2.84%, Zee Entertainment down by 1.89%, ICICI Bank down by 1.52%, Hero MotoCorp down by 1.44% and Grasim Industries was down by 1.20% were the top losers.

All Asian markets were trading in green, Hang Seng increased 326.19 points or 1.2% to 27,447.17, Taiwan Weighted strengthened 92.26 points or 0.93% to 9,969.38, Straits Times advanced 27.06 points or 0.85% to 3,217.79, Shanghai Composite gained 14.89 points or 0.57% to 2,606.58, Jakarta Composite soared 18.60 points or 0.29% to 6,485.26, KOSPI rose 28.27 points or 1.32% to 2,173.30 and Nikkei 225 surged 208.04 points or 1.01% to 20,782.67.