Bourses soar to day’s high in afternoon session

Extending early gains, the local equity markets reached at their intra-day high levels in afternoon session, as markets cheered the rollback of surcharge on foreign portfolio investors (FPIs). The domestic sentiment was buoyed with Industry body CII report stating that the multi-sectoral and multi-dimensional policy stimulus will have significant impact, imparting stability and underpinning a new growth impetus for India. The measures announced come at a time when the world economy is buffeted by global headwinds and trade slowdown. Adding to the market cheer, Former president Pranab Mukherjee said the government's ambitious target of becoming a $5-trillion economy by 2024-25 is possible through prudent fiscal management. Meanwhile, the government is likely to soon consider a proposal of relaxing rules for complying with the mandatory 30% local sourcing norms by foreign single brand retailers. In the currency front, the rupee weakened in line with emerging-market peers after the escalation in the Sino-American trade war.

The BSE Sensex is currently trading at 37126.14, up by 424.98 points or 1.16% after trading in a range of 36492.65 and 37363.95. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.68%, while Small cap index was up by 0.84%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.65%, Bankex up by 1.57%, Industrials up by 1.23%, Consumer Durables up by 1.13% and FMCG was up by 1.06%, while Metal down by 3.32%, Basic Materials down by 0.80% and Auto was down by 0.50% were the few losing indices on BSE.

The top gainers on the Sensex were HDFC up by 3.88%, Bajaj Finance up by 2.68%, Larsen & Toubro up by 2.47%, ITC up by 2.33% and ICICI Bank was up by 2.12%. On the flip side, Tata Steel down by 5.31%, Vedanta down by 3.56%, Hero MotoCorp down by 2.77%, Sun Pharma down by 2.27% and Tata Motors - DVR was down by 2.20% were the top losers.

Meanwhile, commenting on the multi-sectoral and multi-dimensional policy stimulus announced by government, Confederation of Indian Industry (CII) has said these raft of measures will have significant impact, imparting stability and underpinning a new growth impetus for India. It also expects that the Indian economy will climb up in the coming months. It added that the economic package announced come at a time when the world economy is buffeted by global headwinds and trade slowdown.

CII has stated that it is indeed commendable that all these multi-sectoral steps were carried out without pressure on the fiscal deficit. It also noted that the comprehensive measures removing enhanced surcharge on foreign portfolio investors (FPIs) and domestic investors (DIs), securing transmission of lower repo rates, addressing delayed payments and ensuring that bank officials are confident about lending are strategically targeted towards raising investments.

Elaborating further, Industry body said creation of a shelf of infrastructure projects and announcement of a long-term financial institution have wide positive ramifications for the economy. It also noted that with the global environment in high flux, India remains well-poised for staying at the top of the growth ladder. It also hopes that the growth momentum across sectors like infrastructure, automotives, consumer durables, and others will see huge impetus.

The CNX Nifty is currently trading at 10940.40, up by 111.05 points or 1.03% after trading in a range of 10756.55 and 11000.55. There were 29 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 4.08%, HDFC up by 3.72%, Bajaj Finance up by 2.63%, Larsen & Toubro up by 2.55% and Adani Ports &SEZ was up by 2.30%. On the flip side, Tata Steel down by 5.47%, JSW Steel down by 4.60%, Vedanta down by 3.53%, Hindalco Industries down by 3.22% and Hero MotoCorp was down by 2.78% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 749.70 points or 2.86% to 25,429.63, Nikkei 225 slipped 449.87 points or 2.17% to 20,261.04, Shanghai Composite declined 39.05 points or 1.35% to 2,858.38, Taiwan Weighted dropped 183.54 points or 1.74% to 10,354.57, KOSPI fell 31.99 points or 1.64% to 1,916.31, Jakarta Composite lost 58.65 points or 0.94% to 6,196.95 and Straits Times was down by 48.78 points or 1.57% to 3,061.57.