Markets hit record highs as trends show NDA crossing majority mark

Indian equity benchmarks have made a gap-up opening and are trading at record high levels as trends showed Prime Minister Narendra Modi-led National Democratic Alliance (NDA) leading on over 300 seats. Some support also came with report that the finance ministry has prepared 100-day agenda for the new government with an aim to push the economy which has slipped to 6.6% in the third quarter of 2018-19, as the Lok Sabha election process coming to an end. Among other things, the agenda is likely to focus on increasing private investment, employment generation and giving relief to the farm sector. Besides, the agenda also include improving direct and indirect tax collection. Simplification of tax procedure especially with regards to the goods and services tax is also on the cards.

On the global front, Asian markets are trading mostly lower at this point of time as investors worried about the ongoing trade tensions between the United States and China. The US markets settled in red territory on Wednesday amid report that the White House was prepared to target more Chinese technology firms in its trade wrangling with Beijing.

Back home, traders ignored private report stating that the value of merger and acquisition deals announced in April stood at $735 million (over Rs 5,100 crore), a decline of 96% from $19,142 million in the year-ago period. In scrip specific development, SpiceJet gained on launching 20 new domestic flights and Allcargo Logistics surged on getting nod to raise Rs 1,000 crore on private placement basis. 

The BSE Sensex is currently trading at 39787.61, up by 677.40 points or 1.73% after trading in a range of 39464.69 and 39901.59. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.49%, while Small cap index was up by 1.30%.

The gaining sectoral indices on the BSE were Capital Goods up by 2.96%, Bankex up by 2.89%, Realty up by 2.66%, Industrials up by 2.37%, PSU up by 2.37%

The top gainers on the Sensex were Indusind Bank up by 7.11%, SBI up by 4.55%, Larsen & Toubro up by 3.67%, Yes Bank up by 3.67% and Hero MotoCorp up by 3.18%. On the flip side, Vedanta down by 1.26%, Tata Motors down by 0.28%, ONGC down by 0.20% and Sun Pharma down by 0.14% were the only losers.

Meanwhile, with an aim to push the economy, which has slipped to 6.6% in the third quarter of 2018-19, the finance ministry has prepared 100-day agenda for the new government. The agenda is likely to focus on increasing private investment, employment generation and giving relief to the farm sector. Besides, the agenda include improving direct and indirect tax collection. Simplification of tax procedure especially with regards to the goods and services tax is also on the cards.

Moreover, reinvigorating industrial growth, increasing credit growth, consolidation in the banking sector and funding the unfunded would also be part of the 100-day agenda. Also, there would be emphasis on raising corporate governance in the banking sector including a more diversified board structure.

The finance ministry in the process of further improving its EASE (Enhanced Access and Service Excellence) focusing on six themes of customer responsiveness, responsible banking, credit off take, PSBs as Udyami Mitra, deepening financial inclusion and digitalisation and developing personnel for brand of public sector banks.

The CNX Nifty is currently trading at 11935.35, up by 197.45 points or 1.68% after trading in a range of 11836.90 and 11968.95. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 6.99%, Adani Ports up by 6.09%, Indiabulls Housing up by 5.22%, SBI up by 4.66% and Larsen & Toubro up by 3.89%. On the flip side, Vedanta down by 1.05%, Hindalco down by 0.53%, Tech Mahindra down by 0.50%, Coal India down by 0.33% and ONGC down by 0.31% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 declined 131.63 points or 0.6% to 21,151.74, Straits Times dropped 13.41 points or 0.42% to 3,169.73, Hang Seng tumbled 359.35 points or 1.30% to 27,346.59, Taiwan Weighted fell 158.42 points or 1.51% to 10,298.80, KOSPI slipped 0.45 points or 0.02% to 2,064.41 and Shanghai Composite was down by 24.22 points or 0.84% to 2,867.48.