Bourses trade with traction; Sensex soars around 300 points

Indian equity markets gained traction in late afternoon session to reach near their intraday high points, despite weak cues from European markets. The street got comfort amid reports that the Ministry of Micro, Small and Medium Enterprises is striving to increase the number of micro and small industries in the country on a sustainable basis through implementation of various schemes and programmes. The Ministry provides better credit facility, technology up-gradation and skilling to boost the entire MSME eco-system. Further, investors took a note of Former Vice Chairman of NITI Aayog, Arvind Panagariya’s statement that India's economy needs to grow at 8-10 per cent annually if good jobs have to be provided to those joining the workforce, emphasising that an export-led growth is very critical for creation of good jobs in the country.

On the global front, European markets were trading in red, as France's manufacturing confidence deteriorated in June largely reflecting weak production outlook and foreign demand. The survey results from the statistical office Insee showed that the manufacturing sentiment index dropped to 102 in June from 104 in May. The score was forecast to remain unchanged at 104. Asian markets were also trading in red.

The BSE Sensex is currently trading at 39413.63, up by 290.67 points or 0.74% after trading in a range of 38946.04 and 39432.31. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Energy up by 1.94%, Oil & Gas up by 1.50%, Metal up by 1.48%, Utilities up by 1.46% and Power up by 1.28%, while Capital Goods down by 0.51% and Industrials down by 0.14% were the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.69%, Reliance Industries up by 2.41%, Axis Bank up by 2.34%, Tata Steel up by 1.67% and Bajaj Auto up by 1.33%. On the flip side, Yes Bank down by 1.34%, Larsen & Toubro down by 0.90%, Asian Paints down by 0.84%, Indusind Bank down by 0.58% and Hindustan Unilever down by 0.49% were the top losers.

Meanwhile, Former Vice Chairman of NITI Aayog, Arvind Panagariya has expressed need that Indian economy should grow at 8-10% annually if good jobs have to be provided to those joining the workforce, pointing that an export-led growth is very critical for creation of good jobs in the country.

Panagariya also noted that the country has to be open, for trade to grow, adding that ‘We have to return to becoming an export-led growth country.’ He further termed Indian economy growth rate of about 7% plus during the 15-year period from 2003-04 onwards as ‘very impressive’.

Besides, Arvind Panagariya emphasised that by increasing exports, imports will also automatically grow. He also noted that he has always maintained that India's problem is not unemployment but low wages.

The CNX Nifty is currently trading at 11709.20, up by 9.55 points or 0.08% after trading in a range of 11651.00 and 11717.15. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.84%, JSW Steel up by 1.67%, BPCL up by 1.51%, Power Grid up by 1.18% and Mahindra & Mahindra up by 1.08%. On the flip side, Zee Entertainment down by 3.81%, Yes Bank down by 2.14%, Bharti Infratel down by 2.03%, Sun Pharma down by 0.96% and Larsen & Toubro down by 0.95% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite declined 38.09 points or 1.27% to 2,970.06, KOSPI fell 4.69 points or 0.22% to 2,121.64, Hang Seng decreased 358.71 points or 1.26% to 28,154.29, Nikkei 225 slipped 92.18 points or 0.43% to 21,193.81, Straits Times trembled 6.43 points or 0.19% to 3,305.10 and Taiwan Weighted was down by 72.73 points or 0.67% to 10,706.72. On the flip side, Jakarta Composite was up by 28.48 points or 0.45% to 6,316.95.

European markets were trading in red; FTSE fell 18.09 points or 0.24% to 7,398.60, CAC lost 8.79 points or 0.16% to 5,512.92 and DAX was down by 14.51 points or 0.12% to 12,260.06.