Firm trade persists on Dalal Street

Firm trade continued on Dalal Street in late afternoon session, aided by firm cues from European markets. In line with the larger peers, the broader indices also maintain their upward rally with notable gains. Gaining momentum continued on the streets, after international rating agency S&P Global Ratings said that the landslide victory for Prime Minister Narendra Modi-led BJP in the general election is likely to improve the flow of foreign capital for corporates in India. Adding more comfort, the Commerce and Industry Ministry proposed cutting down compliance time significantly to just one hour per month for start-ups as part of measures to ease regulatory requirements for budding entrepreneurs. The proposal is a part of 'Start-up India Vision 2024', prepared by the Department for Promotion of Industry and Internal Trade (DPIIT) for the new government to promote the growth of budding entrepreneurs.

On the global front, European markets were trading in green, as the Finnish manufacturing confidence rose in May after falling in the previous month. The data released by the Confederation of Finnish Industries EK showed that the business confidence of manufacturing companies rose to 1 in May from minus 1 in April. Confidence in the construction sector rose to 5 in May from 3 in the preceding month. Asian markets were also trading mostly in green.

Back home, minerals and mining industry stocks were in focus, as the mining industry body pitched for an immediate extension of leases of more than 300 non-captive mines until March 2030, expressing fear that the sector may face a crisis-like situation post expiry of licences of these mines next year.

The BSE Sensex is currently trading at 39745.56, up by 310.84 points or 0.79% after trading in a range of 39353.16 and 39821.94. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.03%, while Small cap index up by 1.58%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.96%, Realty up by 2.79%, Power up by 2.77%, Utilities up by 2.37% and Metal up by 2.30%, while Energy down by 0.35% and Healthcare down by 0.14% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 5.94%, Yes Bank up by 3.72%, NTPC up by 3.37%, Larsen & Toubro up by 3.16% and HDFC up by 2.37%. On the flip side, Indusind Bank down by 1.54%, Asian Paints down by 1.42%, Reliance Industries down by 1.11%, Bharti Airtel down by 0.96% and ONGC down by 0.43% were the top losers.

Meanwhile, expressing need to focus on getting big ticket investments from China, the Federation of Indian Chambers of Commerce and Industry’s (FICCI) President Sandip Somany has said that India should cut interest rates further and adopt consistent policies for the export of agricultural produce to enable Indian exporters to take advantage of the current US-China trade war.

Somany also noted that if the US-China trade war continues, it offers good opportunities for Indian exports in certain areas, adding that the NDA government in its second term should make agricultural exports more competitive by adopting a consistent policy.

FICCI President further said that Chinese companies should be motivated to set up investments in India, as the country have huge trade deficit with China. Besides, he said that India should start selling value added products to China instead of raw materials and chemicals, to boost its exports to China.

The CNX Nifty is currently trading at 11945.90, up by 101.80 points or 0.86% after trading in a range of 11812.40 and 11957.15. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 5.91%, Yes Bank up by 3.72%, NTPC up by 3.60%, Grasim Industries up by 3.45% and Indian Oil Corporation up by 3.41%. On the flip side, Zee Entertainment down by 2.71%, Indusind Bank down by 1.61%, Asian Paints down by 1.34%, Tech Mahindra down by 1.28% and Reliance Industries down by 1.15% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted surged 5.85 points or 0.06% to 10,334.13, Shanghai Composite gained 38.62 points or 1.35% to 2,891.61, Jakarta Composite soared 52.67 points or 0.87% to 6,110.02 and Nikkei 225 was up by 65.36 points or 0.31% to 21,182.58. On the flip side, Hang Seng decreased 43.24 points or 0.16% to 27,310.69, KOSPI fell 1.10 points or 0.05% to 2,044.21 and Straits Times was down by 4.63 points or 0.15% to 3,165.26.

European markets were trading in green; France’s CAC added 9.72 points or 0.18% to 5,326.23 and Germany’s DAX was up by 43.35 points or 0.36% to 12,054.39.