Benchmarks trade in fine-fettle; Nifty above 11,050 mark

With a positive opening, Indian equity benchmarks have expanded their previous session’s rally and are trading in fine-fettle in early deals on Friday, amid reports that the government is likely to withdraw higher surcharge on foreign portfolio investors (FPIs). In this regard, Finance minister Nirmala Sitharaman will meet market participants, including senior officials of foreign portfolio investors and mutual funds, later in the day to ascertain views on current issues relating to financial markets. Sensex and Nifty garnered gains of around half a percent each. All the sectoral indices are trading in green on the BSE. Some support also came with report that giving a relief to startups, the government has laid out a procedure to address pending angel tax assessments under which action would be taken only after approval of a supervisory officer. Traders took note of report that India Inc demanded a stimulus package of over Rs 1 lakh crore to kick-start investment cycle and revive the economy which is showing signs of a slowdown.

On the global front, Asian markets were trading mixed following overnight rally on Wall Street aided by China’s solid export figures and a stabilisation in the yuan, but fresh concerns about Sino-US trade ties capped the region’s gains. Back home, on the sectoral front, aviation stocks were in focus with the International Air Transport Association’s (IATA) data showing that India's domestic air passenger traffic rose 7.9% in June over the year ago period even as the average demand for domestic travel across seven major aviation markets declined in the reporting month to 4.4% from 4.7% earlier. In scrip specific development, Wipro strengthened on partnering with Camunda to offer workflow automation platform. HCL Technologies edged higher as its arm picks up stake in Kalido.

The BSE Sensex is currently trading at 37499.56, up by 172.20 points or 0.46% after trading in a range of 37406.26 and 37611.87. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.87%, while Small cap index was up by 0.92%.

The top gaining sectoral indices on the BSE were Utilities up by 1.62%, Power up by 1.49%, Realty up by 1.28%, Basic Materials up by 1.26% and Industrials was up by 0.60%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Power Grid up by 2.49%, HDFC Bank up by 1.46%, HDFC up by 1.41%, NTPC up by 1.20% and Hero MotoCorp up by 1.18%. On the flip side, Tata Motors down by 2.18%, Tata Motors - DVR down by 1.45%, Mahindra & Mahindra down by 1.07%, Tech Mahindra down by 0.88% and SBI down by 0.53% were the top losers.

Meanwhile, with an aim to revive Indian economy, which is going through a slowdown, Industry leaders have asked the government for a stimulus package of over Rs 1 trillion to restart investments. They also said the government will soon take action to boost economic growth. Besides, the government told the business leaders that the punitive penal provisions for non-compliance of CSR spending norms under the companies law would not be pursued.

The Associated Chambers of Commerce and Industry of India (Assocham) president B K Goenka has said ‘The economy requires a critical intervention by introducing a stimulus package. We have suggested for a package of over Rs one lakh crore.’

The Confederation of Indian Industry (CII) Vice-President T V Narendran said that the government sought views on ways to further stimulate the country's economic growth. He said ‘Across the board, we discussed the key issues’ and added that slowdown in the auto industry would have an implication on the steel sector.

Business lobby, the Federation of Indian Chambers of Commerce and Industry (FICCI) president Sandip Somany has said transmission of cut in interest rate to consumers by banks is a big issue. Banks must be encouraged to pass on the benefits of rate reduction to consumers and borrowers. He added ‘We are hopeful of further rate cut. It is encouraging that the RBI has reduced rates by cumulative 110 basis points.’

The CNX Nifty is currently trading at 11086.45, up by 54.00 points or 0.49% after trading in a range of 11062.80 and 11121.85. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 9.04%, Power Grid up by 2.39%, Grasim Industries up by 2.22%, Ultratech Cement up by 2.16% and JSW Steel up by 1.58%. On the flip side, Tata Motors down by 1.93%, Mahindra & Mahindra down by 1.23%, Coal India down by 0.87%, Hindalco down by 0.83% and Tech Mahindra down by 0.66% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 116.97 points or 0.57% to 20,710.32, Kospi gained 21.99 points or 1.14% to1, 942.60, Jakarta Composite soared 11.96 points or 0.19% to 6,286.63. On the flip side, Hang Seng slipped 47.20 points or 0.18% to 26,073.57 and Shanghai Composite was down by 10.46 points or 0.37% to 2,784.09.