Markets start New Year on optimistic note

Indian equity benchmarks started the New Year on optimistic note with frontline gauges surpassing their crucial 12,200 (Nifty) and 41,300 (Sensex) levels. Sentiments remained positive on report that India's current account deficit (CAD) narrowed to 0.9 per cent of GDP, or $6.3 billion, in the September 2019 quarter, on account of lower trade deficit. It had stood at 2.9 per cent of gross domestic product (GDP), or $19 billion, in the corresponding quarter of 2018-19. On a sequential basis, CAD had printed 2 per cent of GDP, or $14.2 billion, in the June 2019 quarter. Traders also got some encouragement with Finance Minister Nirmala Sitharaman unveiling Rs 102 trillion of infrastructure projects, including Mumbai-Ahmedabad High Speed rail, in the next five years to help achieve the target of $5 trillion (around Rs 356 trillion) economy by 2025. Traders shrugged off report that Controller General of Accounts in its latest data showing that Fiscal deficit of the Union government rose to 114.8 per cent of the target in the first eight months of the fiscal year.

On the global front, most of the Asian markets are closed on Wednesday on account of the New Year holiday. The US markets ended higher as President Donald Trump said that Phase 1 of trade deal with China would be signed on January 15 at the White House. Back home, NBFC stocks remained buzzing with the Reserve Bank of India (RBI) extending the availability of relaxed terms for sale of assets by non-bank lenders to banks to June 30, 2020. The dispensation was earlier set to expire on December 31, 2019. The rules for securitisation transactions were first relaxed on November 29, 2018, months after a liquidity crisis emerged in the wake of the collapse of the Infrastructure Leasing & Financial Services (IL&FS) group.

The BSE Sensex is currently trading at 41389.62, up by 135.88 points or 0.33% after trading in a range of 41349.36 and 41443.52. There were 24 stocks advancing against 5 stocks declining on the index, while 1 stock remains unchanged on the index on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.45%.

The top gaining sectoral indices on the BSE were Telecom up by 0.91%, Capital Goods up by 0.71%, Realty up by 0.66%, Industrials up by 0.61% and Energy was up by 0.46%, while there is no looser in sectoral indices on the BSE.

The top gainers on the Sensex were Larsen & Toubro up by 0.85%, Titan Company up by 0.79%, Bharti Airtel up by 0.75%, Reliance Industries up by 0.64% and ICICI Bank was up by 0.53%. On the flip side, NTPC down by 0.38%, Nestle down by 0.17%, ONGC down by 0.16%, Mahindra & Mahindra down by 0.15% and HCL Tech was down by 0.04% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) said India's current account deficit (CAD), a difference between foreign exchange inflows and outflows, narrowed to 0.9 per cent of gross domestic product (GDP), or $6.3 billion, in second quarter of current financial year (Q2FY20), on account of lower trade deficit. It had stood at 2.9 per cent of GDP, or $19 billion, in the corresponding quarter of 2018-19.

On a sequential basis, CAD had printed 2 per cent of GDP, or $14.2 billion, in the June 2019 quarter. The contraction in the CAD was primarily on account of a lower trade deficit at $38.1 billion as compared with $50 billion a year ago. During the first half of the FY 20, CAD narrowed to 1.5 per cent of GDP from 2.6 per cent in the corresponding period in 2018-19, on the back of a reduction in the trade deficit, which shrank to $84.3 billion as compared with $95.8 billion a year ago.

Besides, the balance of payment stood at $5.12 billion in the second quarter and $19.10 billion during the first half of this fiscal. Net foreign direct investment stood at $7.4 billion, almost the same level as in second quarter of 2018-19.

The CNX Nifty is currently trading at 12203.15, up by 34.70 points or 0.29% after trading in a range of 12196.85 and 12222.20. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 1.75%, Bharti Infratel up by 1.74%, Larsen & Toubro up by 1.11%, Wipro up by 0.77% and Vedanta was up by 0.75%. On the flip side, Eicher Motors down by 0.83%, Coal India down by 0.50%, Mahindra & Mahindra down by 0.36%, Cipla down by 0.33% and GAIL India was down by 0.25% were the top losers.

All the major Asian markets are closed today on Account of New Year holiday.