Local equities reverse losses; Sensex reclaims 37,100 mark

Local equity benchmarks, after a negative opening, have recovered from lower levels to trade firm in morning session on the back of increased buying by funds. Traders got encouragement as Environment and forest minister Prakash Javadekar termed the present economic slowdown as a ‘cyclical process’, he said the government remains optimistic about near-doubling the economy size to $5 trillion by 2024. Market participants also got boost with Niti Aayog Chief Executive Officer Amitabh Kant’s statement that states will have to become key agents of growth to help achieve India’s target of becoming a $5 trillion economy. Investors took note of a report that trade ministers from the 16-nation Regional Comprehensive Economic Partnership (RCEP) pledged to address contentious issues and clinch a deal this year, underscoring the fact that continuing uncertainties in trade and investment environment had dampened growth outlook. Traders turned optimistic with a report that the government has taken upon itself the task of giving the much-needed boost to the economy, by fast-tracking public spending, particularly CAPEX. Besides, a private report stated that with an aim to invest Rs 100 lakh crore over the next five years in the infrastructure sector, the Finance Ministry has constituted a task force to draw up National Infra Pipeline.

On the global front, Asian markets were trading mostly in green, to build on last week's gains after China unveiled fresh stimulus measures and below-par US jobs data reinforced expectations the Federal Reserve will cut interest rates this month. Back home, apex mineral body FIMI has sought the intervention of Prime Minister Narendra Modi for much-needed reforms that would accelerate growth in the sector which has the potential to create employment opportunities for about five crore people.

The BSE Sensex is currently trading at 37138.49, up by 156.72 points or 0.42% after trading in a range of 36784.47 and 37160.70. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.52%, while Small cap index was up by 0.43%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.88%, FMCG up by 0.83%, BANKEX up by 0.79%, Healthcare up by 0.77% and Telecom was up by 0.56%, while IT down by 0.30%, Auto down by 0.23%, TECK down by 0.20% and Metal was down by 0.18% were the few losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.86%, Sun Pharma up by 1.60%, Hindustan Unilever up by 1.39%, Yes Bank up by 1.32% and Kotak Mahindra Bank was up by 1.16%. On the flip side, HCL Tech down by 1.19%, Tech Mahindra down by 0.96%, Tata Motors - DVR down by 0.91%, Tata Motors down by 0.91% and Bajaj Auto was down by 0.57% were the top losers.

Meanwhile, amid India aims to become a $5 trillion economy, the government has constituted a high-level task force, headed by Department of Economic Affairs (DEA) Secretary Atanu Chakraborty, to identify infrastructure projects for Rs 100 trillion investment by 2024-25. The task force will draw up a 'National Infrastructure Pipeline' of Rs 100 trillion. This will include greenfield and brownfield projects costing above Rs 100 crore each. The task force will submit its report on the pipeline for 2019-20 by October 31, 2019 and on the indicative pipeline for 2021-25 by December-end.

The task force will comprise secretaries from different ministries, other senior officials and Niti Aayog CEO. It will identify technically feasible and financially/ economically viable infrastructure projects that can be initiated in 2019-20. Further, it has been asked to list the projects that can be included in the pipeline for each of the remaining five years between fiscals 2021-25.

The task force will also enable robust marketing of the pipeline of projects requiring private investment through the India Investment Grid (IIG) and National Investment and Infrastructure Fund (NIIF), among others. Besides, Prime Minister Narendra Modi in his Independence Day speech had said that Rs 100 trillion would be invested on infrastructure over the next five years. These will include social and economic infrastructure projects.

The CNX Nifty is currently trading at 11005.20, up by 59.00 points or 0.54% after trading in a range of 10889.80 and 11006.80. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.81%, ICICI Bank up by 1.95%, Hindustan Unilever up by 1.66%, Yes Bank up by 1.66% and Larsen & Toubro was up by 1.28%. On the flip side, HCL Tech down by 1.07%, Tech Mahindra down by 1.03%, Eicher Motors down by 0.87%, Infosys down by 0.54% and Bajaj Auto was down by 0.47% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 108.47 points or 0.51% to 21,308.04, Jakarta Composite soared 13.31 points or 0.21% to 6,322.26, KOSPI rose 11.42 points or 0.57% to 2,020.55, Shanghai Composite gained 10.91 points or 0.36% to 3,010.51, Taiwan Weighted strengthened 9.83 points or 0.09% to 10,790.47 and Straits Times was up by 4.48 points or 0.14% to 3,148.96. On the other side, Hang Seng was down by 14.67 points or 0.05% to 26,676.09.