Indian equities add gains in early noon deals

Indian stock markets continued to trade in positive terrain in the early noon session due to buying in Realty, Telecom, Auto and Metal. Buying in frontline stocks such as Bharti Airtel, ICICI Bank and Reliance Industries were aiding sentiment, while selling in HCL Technologies, Bajaj Finance and Asian Paints kept the gains in the markets in check. Investors took encouragement as Corporate Affairs Secretary Injeti Srinivas has said that the corporate affairs ministry has maintained a fairly reliable database that is not a black box. He emphasized that it is up to statistical authorities to decide on which data is representative for GDP calculation. Some comfort also came with a private report that even as employment scenario remains weak, India may see the addition of 11.5 lakh jobs in the formal sector during the first half of FY20, adding travel, hospitality and BPO/ITeS are likely to be the top contributors. Meanwhile, the government has prohibited imports of second-hand or refurbished electronics and IT goods without registration with the Bureau of Indian Standards (BIS). Under the Electronics and IT Goods (Requirement of Compulsory Registration) order 2012, imports of these goods are allowed through the registration with the BIS or on specific exemption letter from the ministry of IT and electronics (MeitY).

On the global front, Asian markets are trading mixed; after U.S. President Donald Trump's tariff hike on $200 billion of Chinese goods took effect, raising tensions between the world's two biggest economies despite ongoing talks. Back on street, in scrip specific development, Reliance Industries edged up as its arm Reliance Brands (RBL) has signed a definitive agreement to acquire, subject to terms and conditions stated in the agreement, either by itself or through a direct or indirect wholly owned subsidiary of, and controlled by, RBL, 100% equity shares of Hamleys Global Holdings (HGHL) for a cash consideration of GBP 67.96 million.

The BSE Sensex is currently trading at 37683.93, up by 125.02 points or 0.33% after trading in a range of 37479.62 and 37721.98. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.49%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Realty up by 1.09%, Telecom up by 0.76%, Metal up by 0.68%, Bankex up by 0.68% and Energy was up by 0.67%, while IT down by 0.39%, TECK down by 0.20%, Oil & Gas down by 0.14%, FMCG down by 0.07% and Capital Goods was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.50%, ICICI Bank up by 1.59%, Reliance Industries up by 1.25%, Axis Bank up by 1.10% and Tata Motors was up by 1.00%. On the flip side, HCL Technologies down by 4.49%, Bajaj Finance down by 1.64%, Asian Paints down by 1.60%, Indusind Bank down by 1.13% and ONGC was down by 0.80% were the top losers.

Meanwhile, Niti Aayog CEO Amitabh Kant has said the food services and restaurant industry will play a critical role in pushing India's Gross Domestic Product (GDP) growth. He also pointed out that the restaurant sector is third largest industry among India's service sectors. He added “If India was to grow from 7.5 percent to 9-10 per cent, the restaurant industry will be very critical drivers of growth story...Food services industry will be main drivers of India's growth.”

Kant has stated that there will be a huge food revolution in India and it will be driven by Indian entrepreneurs and chefs. Noting that restaurants are great wealth and job creators, he said digital technology has played great role in expansion of restaurant industry.

Niti Aayog CEO further stated that Indian soft power will be driven by Indian restaurants and chefs. He also said that Indian regional cuisines will make a major impact on global market in the days to come. He noted that Indian regional cuisines are still waiting to be promoted and marketed. He expressed hope that young entrepreneurs will make a significant impact on the food industry.

The CNX Nifty is currently trading at 11333.10, up by 31.30 points or 0.28% after trading in a range of 11272.25 and 11342.75. There were 26 stocks advancing against 23 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Indiabulls Housing up by 3.26%, Zee Entertainment up by 2.60%, Bharti Airtel up by 2.55%, Adani Ports &Special up by 2.27% and ICICI Bank was up by 1.63%. On the flip side, HCL Technologies down by 4.89%, Bajaj Finance down by 1.80%, Bharti Infratel down by 1.70%, BPCL down by 1.54% and Asian Paints was down by 1.38% were the top losers.

Asian markets are trading mixed; Straits Times increased 0.89 points or 0.03% to 3,270.59, Hang Seng gained 311.74 points or 1.10% to 28,622.81, KOSPI surged 4.51 points or 0.21% to 2,106.52 and Shanghai Composite was up by 52.07 points or 1.83% to 2,903.02.

On the flip side, Jakarta Composite fell 20.67 points or 0.33% to 6,178.13, Taiwan Weighted slipped by 20.68 points or 0.19% to 10,712.99, Nikkei 225 was down by 42.47 points or 0.20% to 21,359.66.