Benchmarks trade firm in early deals; Sensex above 38,600 mark

Indian equity benchmarks have made gap-up opening and are trading higher with gains of around one third of a per cent in early deals on Thursday. Except Consumer Durables, IT and TECK, all the sectoral indices trading are in green on BSE. Traders took encouragement with Commerce and Industry Minister Piyush Goyal’s statement that foreign direct investments (FDI) into the country grew 3 per cent to $6.95 billion in April. During 2018-19, the country recorded the highest-ever total FDI inflow of $64.38 billion, which is 6 per cent higher as compared to 2017-18. Adding optimism among investors, CBDT Chairman Pramod Chandra Mody said that the government has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 trillion, a task that is difficult, but achievable. Traders overlooked a private report stating that the country's real GDP growth is likely to be 6.7 percent from 6.9 percent forecasted earlier in FY20 citing the continuing slowdown in consumption demand and warned that a revival is unlikely before FY21.

Global cues also remained supportive with all the Asian markets trading in green at this point of time after Federal Reserve chairman Jerome Powell indicated interest rates cuts may be imminent in the face of some weakening economic data. The US markets had closed higher on Wednesday. Back home, in scrip specific developments, InterGlobe Aviation came in focus after the airline clarified in view of its ongoing promoter feud that the related party transactions it entered with group entities are public and only a fraction of the total revenues of the airline’s holding company. Housing Development Finance Corporation (HDFC) is trading higher on planning to raise up to Rs 3,000 crore by issuing bonds on a private placement basis to shore up its long-term capital needs.

The BSE Sensex is currently trading at 38684.49, up by 127.45 points or 0.33% after trading in a range of 38631.31 and 38774.80. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.27%, while Small cap index was up by 0.21%.

The top gaining sectoral indices on the BSE were Metal up by 1.76%, Oil & Gas up by 0.90%, Healthcare up by 0.88%, PSU up by 0.86% and Utilities was up by 0.82%, while Consumer Durables down by 0.41%, IT down by 0.40% and TECK was down by 0.20% were the few losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 2.69%, Tata Steel up by 2.02%, SBI up by 1.43%, ONGC up by 1.42% and Tata Motors up by 1.25%. On the flip side, Bajaj Auto down by 2.49%, Tech Mahindra down by 1.86%, Infosys down by 0.81%, Bajaj Finance down by 0.69% and ICICI Bank down by 0.57% were the top losers.

Meanwhile, commerce and Industry Minister Piyush Goyal has said that foreign direct investments (FDI) into India grew 3 per cent to $6.95 billion in April 2019 as compared to $6.77 billion FDI inflows in April 2018. The country had recorded the highest-ever total FDI inflow of $64.38 billion during 2018-19, which was 6 per cent higher as compared to 2017-18.

He also said 59 FDI proposals were approved in 2018-19 and five in April this fiscal. Besides, he said the Enforcement Directorate is conducting investigation in 581 cases under the Foreign Exchange Management Act, 1999, (FEMA) for alleged violation of FDI norms. He added that disclosure of other details of these cases may not be in large public interest as the same may adversely impact the ongoing investigations.

Goyal further said there is no proposal under government’s consideration to increase FDI in the multi-brand retail sector. The country has received a FDI proposal in the sector from one foreign company of UK. According to the FDI policy, a foreign retailer can take 51 per cent stake in a domestic firm under government approval route.

The CNX Nifty is currently trading at 11533.75, up by 34.85 points or 0.30% after trading in a range of 11519.50 and 11561.70. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 3.26%, Zee Entertainment up by 2.63%, Vedanta up by 2.59%, Dr. Reddy’s up by 2.08% and Tata Steel up by 2.01%. On the flip side, Bajaj Auto down by 2.42%, Tech Mahindra down by 1.96%, Titan Co down by 1.05%, Bajaj Finance down by 0.93% and Infosys down by 0.84% were the top losers.

All the Asian markets were trading in green; Nikkei 225 surged 104.22 points or 0.48% to 21,637.70, Straits Times strengthened 21.86 points or 0.65% to 3,362.28, Hang Seng gained 335.05 points or 1.19% to 28,539.74, Taiwan Weighted advanced 47.74 points or 0.44% to 10,846.22 and Kospi soared 24.96 points or 1.21% to 2,083.74. Jakarta Composite rose 3.44 points or 0.05% to 6,414.12and Shanghai Composite was up by 9.55 points or 0.33% to 2,924.85.