Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the early noon session due to buying in Capital Goods, Industrials and Basic Materials stocks. Buying in frontline stocks such as Tata Motors, Yes Bank and Tata Steel were aiding sentiment, while selling in Bharti Airtel, Infosys and Tech Mahindra kept the gains in the markets in check. Sentiments remained up-beat with Chief Economic Advisor Krishnamurthy Subramanian’s statement that the ongoing trade war between the United States of America and China will not have any impact on Indian export which is just below 2 per cent of the global trade. Markets hold strength as the Reserve Bank of India (RBI) decided to transfer a record Rs 1,23,414 crore of its surplus to the central government for the fiscal year 2018-19 or FY19 (July to June), and an additional Rs 52,637 crore of excess provisions as recommended by the Bimal Jalan committee on Economic Capital Framework (ECF).

On the global front, Asian markets were trading mostly in green, as the market cheered with renewed optimism on trade deal between US and China, and boosted the so-called risk-off trades. Back on street, in scrip specific developments, shares of Kajaria Ceramics surged on receiving approval to merge Kajaria Tiles with itself. Besides, SpiceJet gained on launching Red Hot sale on select international routes.

The BSE Sensex is currently trading at 37676.39, up by 182.27 points or 0.49% after trading in a range of 37449.69 and 37722.13. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.89%, while Small cap index was up by 1.41%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.40%, Industrials up by 2.15%, Basic Materials up by 2.14%, Auto up by 2.07% and PSU was up by 2.02%, while Telecom down by 1.96%, TECK down by 1.49% and IT was down by 1.38% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 7.15%, Tata Motors - DVR up by 6.80%, Yes Bank up by 3.17%, Tata Steel up by 3.17% and Indusind Bank was up by 2.85%. On the flip side, Bharti Airtel down by 3.56%, Infosys down by 2.48%, Tech Mahindra down by 1.14%, TCS down by 1.11% and Kotak Mahindra Bank was down by 1.10% were the top losers.

Meanwhile, Chief Economic Advisor (CEA) Krishnamurthy Subramanian has said that the ongoing tariff war between the US and China will not have any impact on India’s export which is just below 2 percent of the global trade. He said 'Our exports share is still very small. Our share of global export trade itself is about 2 percent. Therefore, we still have an enormous opportunity to grow. Even if there is actually some shrinkage in the pie of the global trade, still we can grow our pie.'

Subramanian further stated that a raft of measures announced by the government including the rollback of enhanced super-rich tax on foreign and domestic equity investors for the revival of muted growth in the economy was in the right direction. Therefore, he said that there is need to focus on economic growth along with the structural reforms. He also said that the government would do all that is needed for economic growth. He added that investment is a key driver of the economic growth while consumption is a force multiplier.

Besides, on the proposed Rs 70,000-crore capital infusion by the government in public sector banks, CEA said 'I think this Rs 70,000 crore that has been announced for the recapitalisation of banks is quite important because the financial sector matters a lot for economic growth. Credit is basically the lifeline for economic growth. Therefore that is something which actually is important.'

The CNX Nifty is currently trading at 11129.35, up by 71.50 points or 0.65% after trading in a range of 11049.50 and 11138.10. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 6.74%, Britannia Industries up by 6.56%, Ultratech Cement up by 4.20%, Eicher Motors up by 3.83% and UPL was up by 3.61%. On the flip side, Bharti Airtel down by 3.13%, Infosys down by 2.22%, Tech Mahindra down by 1.15%, TCS down by 1.13% and Kotak Mahindra Bank was down by 0.85% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 200.89 points or 0.99% to 20,461.93, KOSPI rose 5.67 points or 0.3% to 1,921.98, Shanghai Composite gained 41.86 points or 1.46% to 2,905.43, Taiwan Weighted strengthened 32.66 points or 0.32% to 10,387.23, Jakarta Composite soared 46.10 points or 0.74% to 6,260.61 and Straits Times was up by 3.12 points or 0.1% to 3,068.45.On the other hand, Hang Seng was down by 58.98 points or 0.23% to 25,621.35.