Bourses gain further traction in late afternoon deals

Indian equity bourses gained further traction in late afternoon session to reach near their intraday high points, tracking firm European markets. Traders got encouragement with a report stating that India has the potential to become the world’s future investment hub and is expected to be the fastest-growing market for investment professionals over the next decade. Domestic sentiments were also getting boost with Finance Minister Nirmala Sitharaman’s statement the government is committed to continue the path of fiscal consolidation without compromising on public expenditure. Finance Minister also highlighted that promotion of economic growth will be on top of agenda.

On the global front, European markets were trading in green, despite France's inflation accelerated as initially estimated in June on services costs. The final data from the statistical office Insee showed that consumer price inflation rose to 1.2 percent from 0.9 percent in May. The rise in inflation resulted from a 1.2 percent acceleration in services prices and 2.6 percent increase in food costs. Asian markets were also trading in green, even though Japan's tertiary activity declined in May after rebounding in the previous month. The data from the Ministry of Economy, Trade and Industry showed that the tertiary activity index fell 0.2 percent month-on-month in May, reversing a 0.8 percent rise in April.

The BSE Sensex is currently trading at 38857.00, up by 299.96 points or 0.78% after trading in a range of 38631.31 and 38881.19. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Realty up by 1.72%, Auto up by 1.49%, Metal up by 1.42%, Telecom up by 1.38% and Consumer Disc up by 0.95%, while IT down by 0.08% was the lone losing index on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.18%, Hero MotoCorp up by 3.92%, Tata Motors - DVR up by 3.56%, Tata Motors up by 3.04% and SBI up by 1.91%. On the flip side, Bajaj Auto down by 1.55%, Tech Mahindra down by 1.50%, ICICI Bank down by 0.93%, Yes Bank down by 0.81% and TCS down by 0.32% were the top losers.

Meanwhile, expressing confidence, Finance Minister Nirmala Sitharaman has said the government is committed to continue the path of fiscal consolidation without compromising on public expenditure.

Sitharaman further said that this budget refers to the government’s commitment to substantially boost investment in agriculture and the social sector and added that the projections are realistic and adequately provide for items of expenditure such as defence expenditure, pension and salaries, internal security and other welfare programmes.

On the economic growth front, Finance Minister highlighted that promotion of economic growth will be on top of agenda, noting that the government has constituted a five-member cabinet committee on investment and growth chaired by PM himself, to give focused attention to growth.

The CNX Nifty is currently trading at 11588.60, up by 89.70 points or 0.78% after trading in a range of 11519.50 and 11599.00. There were 39 stocks advancing against 10 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Zee Entertainment up by 5.09%, Indusind Bank up by 4.21%, JSW Steel up by 4.04%, Hero MotoCorp up by 4.00% and Tata Motors up by 2.87%. On the flip side, Tech Mahindra down by 1.65%, Bajaj Auto down by 1.58%, Yes Bank down by 0.97%, ICICI Bank down by 0.91% and Indian Oil Corporation down by 0.47% were the top losers.

All Asian markets were trading in green; Taiwan Weighted strengthened 44.94 points or 0.42% to 10,843.42, Hang Seng increased 209.00 points or 0.74% to 28,413.69, Jakarta Composite soared 1.12 points or 0.02% to 6,411.80, Straits Times advanced 21.20 points or 0.63% to 3,361.62, KOSPI rose 21.80 points or 1.06% to 2,080.58, Shanghai Composite gained 0.18 points or 0.01% to 2,915.48 and Nikkei 225 was up by 110.05 points or 0.51% to 21,643.53.

All European markets were trading in green; FTSE gained 15.90 points or 0.21% to 7,546.59, CAC rose 11.40 points or 0.20% to 5,578.99 and DAX was up by 2.32 points or 0.02% to 12,375.73.