Local equities trade jubilantly; Nifty surpasses 11,900 mark

Local equity markets maintained their upward momentum in the morning session, on the buzz of more tax reforms and strategic stake sale in many PSUs boosted the domestic sentiment. Apart from blue chips, broader indices too equally participated in the rally with both mid cap and small cap indices trading up by over 0.60%. Most of the sectoral indices on the BSE were trading in green, while weakness in Telecom, Energy and Metal sector was visible. Sentiments remained largely positive as a report stated that the government is unlikely to moderate personal income tax rates for the rich due to fiscal stress on account of lower tax realisation amid slowdown in the economy. Pressure is mounting on the government to cut personal income tax rates to boost demand, especially after the finance ministry reduced the corporate tax rate by up to 10%. Some strength also came in with Commerce and Industry Minister Piyush Goyal's statement that the issues of high capital cost and high taxation levels need to be addressed to boost India’s trade. He added that the country needs to accelerate the export growth to reach the goal of $1 trillion in exports.

On the global front, Asian markets were trading mixed, following disappointing economic data from China and another interest-rate cut by the US Federal Reserve, which suggested no more would come for a while. Back home, on the sectoral front, Reality stock were in focus, as a private report stated that Private equity investment in the real estate sector rose 19% to Rs 39,182 crore during the first nine months of this calendar year as foreign investors continued to acquire commercial complexes.

The BSE Sensex is currently trading at 40253.77, up by 201.90 points or 0.50% after trading in a range of 40178.25 and 40297.52. 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 0.64%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were IT up by 1.78%, TECK up by 1.59%, Realty up by 1.48%, PSU up by 1.17% and Healthcare was up by 0.77%, while Telecom down by 0.51%, Energy down by 0.13% and Metal was down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Infosys up by 4.22%, SBI up by 3.67%, Tata Motors up by 3.00%, Tata Motors - DVR up by 2.00% and Yes Bank was up by 1.58%. On the flip side, Mahindra & Mahindra down by 1.46%, Tata Steel down by 0.88%, Tech Mahindra down by 0.81%, Axis Bank down by 0.55% and Power Grid was down by 0.45% were the top losers.

Meanwhile, the Minister of State for Road Transport and Highways V K Singh has said that the government is working on ways to address various issues, including financing, for basket of highway projects worth Rs 15 lakh crore. He noted that infrastructure and highways is the most profitable sector and can propel the growth of economy. About financing issues, he said the ministry is seriously looking at roping in insurance as bank guarantee for projects.

The minister further said that amid talks of slowing global economy, highways sector has the potential to revive growth citing how the US survived economic depression. He said during 1930s (Great) Depression, the US survived because it built road infrastructure, which spurred steel industry, cement industry, automative, labour market. He also said 'everybody is talking about economic slowdown which is a global phenomenon but in this slowdown if we want to spur the growth then the sector which must receive attention is infrastructure and especially the road infrastructure sector.”

Singh further said that there is need to monetize road-side amenities to address financial challenge. He also pointed out that the good road connectivity is key for driving economic and social development of a country as roads are the engines of the economy enabling seamless movement of people and material across the length and breadth of the country.

The CNX Nifty is currently trading at 11905.55, up by 61.45 points or 0.52% after trading in a range of 11883.05 and 11914.90. There were 34 stocks advancing against 15 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Zee Entertainment up by 6.36%, Infosys up by 3.98%, SBI up by 3.78%, Tata Motors up by 2.94% and GAIL India was up by 2.28%. On the flip side, Mahindra & Mahindra down by 1.47%, Bharti Infratel down by 1.26%, Tata Steel down by 0.88%, Ultratech Cement down by 0.66% and Tech Mahindra was down by 0.58% were the top losers.

Asian markets were trading mixed, Hang Seng increased 269.21 points or 1.01% to 26,936.92, Nikkei 225 surged 80.77 points or 0.35% to 22,923.89, Straits Times advanced 18.43 points or 0.57% to 3,226.35 and KOSPI rose 17.99 points or 0.86% to 2,098.26.

On the other flip, Taiwan Weighted dropped 1.65 points or 0.01% to 11,378.63, Shanghai Composite declined 2.68 points or 0.09% to 2,936.64 and Jakarta Composite lost 37.54 points or 0.6% to 6,258.21.