Markets continue to trade in high spirit; Nifty at 12000 level

Markets were continuing their rally mood in the early noon session on across-the-board buying by funds as well as retail investors. Buying in Auto, Consumer Durables and Consumer Discretionary stocks helped markets to trade higher. Besides, broader indices were also trading in green, supporting their larger peers. Sentiments remained up-beat as Goods and Services Tax (GST) collections touched Rs 1 lakh crore in May 2019 as compared to Rs 94,016 crore in the year ago period. The total gross GST revenue collected in the month of May, 2019 was Rs 1,00,289 crore of which CGST  (Central GST) was Rs 17,811 crore, SGST (State GST) was Rs 24,462 crore, IGST (Integrated GST) was Rs 49,891 crore and Cess was Rs 8,125 crore. Besides, sentiment got boost as the country's manufacturing sector performance gained momentum in May as companies lifted output amid strengthening demand conditions, leading to further job creation in the sector. The Nikkei Manufacturing Purchasing Managers' Index increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month.

On the global front, Asian markets were trading mostly in red, on mounting worries growing Sino-US tensions and Washington’s new tariff threats against Mexico could tip the global economy into a recession. Back home, the monthly sales numbers for the auto companies have started trickling in, as Maruti Suzuki has reported total sales of 134,641 units in May 2019, as compared 172,512 units in May 2018, registering fall of 22%.

The BSE Sensex is currently trading at 40002.65, up by 288.45 points or 0.73% after trading in a range of 39711.02 and 40003.53. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.61%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Auto up by 1.46%, Consumer Durables up by 1.13%, Consumer Discretionary up by 1.11%, Metal up by 0.89% and IT was up by 0.86%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Hero MotoCorp up by 4.99%, Bajaj Auto up by 4.13%, Asian Paints up by 3.36%, Maruti Suzuki up by 1.48% and Tata Steel was up by 1.30%. On the flip side, ONGC down by 1.54%, ITC down by 0.61%, SBI down by 0.35% and Larsen & Toubro was down by 0.20% were the top losers.

Meanwhile, the growth of eight core infrastructure industries slowed down to 2.6 percent in April 2019 as compared to 4.7 percent in same month last year, due to negative growth in crude oil, natural gas and fertiliser output. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 127.5 in April, 2019, which was 2.6% higher compared to the index of April, 2018. Its cumulative growth during April to March, 2018-19 was 4.3%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).   

Among eight core sectors, Coal production having 10.33% weight rose 2.8% in April, 2019 over April, 2018, and its cumulative index increased by 7.4% during April to March, 2018-19 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight surged 4.3% in April, 2019 over April, 2018, and its cumulative index increased by 3.1% during April to March, 2018-19 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight declined by 0.8% in April, 2019 over April, 2018, while its cumulative index was up by 0.8% during April to March, 2018-19 over the corresponding period of previous year. Steel production having 17.92% weight increased by 1.5% in April, 2019 over April, 2018 and its cumulative index increased by 4.7% during April to March, 2018-19 over the corresponding period of previous year. Electricity generation having 19.85% weight jumped by 5.8% in April, 2019 over April, 2018 and its cumulative index increased by 5.2% during April to March, 2018-19 over the corresponding period of previous year.  

Cement production having 5.37% weight was up by 0.8% in April, 2019 over April, 2018 and its cumulative index increased by 13.3% during April to March, 2018-19 over the corresponding period of previous year. Fertilizer production having 2.63% weight fell by 4.4% in April, 2019 over April, 2018, and its cumulative index was up by 0.3% during April to March, 2018-19 over the corresponding period of previous year. Crude Oil production having 8.98% weight declined by 6.9% in April, 2019 over April, 2018 and its cumulative index fell by 4.1% during April to March, 2018-19 over the corresponding period of previous year.        

The CNX Nifty is currently trading at 12000.60, up by 77.80 points or 0.65% after trading in a range of 11920.10 and 12006.55. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 5.03%, Bajaj Auto up by 4.08%, Asian Paints up by 3.47%, Britannia up by 2.57% and Indian Oil was up by 2.30%. On the flip side, ONGC down by 1.69%, Eicher Motors down by 0.88%, ITC down by 0.61%, Zee Entertainment down by 0.59% and SBI was down by 0.34% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite declined 5.66 points or 0.2% to 2,893.04, Nikkei 225 slipped 218.80 points or 1.06% to 20,382.39, Hang Seng decreased 51.06 points or 0.19% to 26,850.03 and Straits Times was down by 3.89 points or 0.12% to 3,113.87. On the other hand, KOSPI rose 22.26 points or 1.09% to 2,064.00 and Taiwan Weighted was up by 1.58 points or 0.02% to 10,500.07.