Bourses trade at day’s high levels on Friday

Indian equity markets soared to day’s high levels on sustained buying activities in index heavyweights, viz Ultratech Cement, HDFC Bank, HDFC among others. The market breadth was positive as 1787 shares were advancing and 1488 were declining, while 160 shares were unchanged on the BSE. Traders took support after Reserve Bank of India (RBI) Governor Shaktikanta Das said that the RBI was confident of achieving its growth-inflation aim of ensuring a soft landing for the economy, 'where inflation is brought down closer to the target of 4 percent over a period of time. At the same time, the growth sacrifice is within manageable limits'. Besides, Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the rupee is holding up relatively well when compared to the currencies of emerging market peers and advanced economies.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from Wall Street overnight, with gains from technology stocks were partially offset by weakness from the energy companies. European markets were trading higher ending the week on a positive note despite the European Central Bank’s larger-than-expected interest rate as well as disappointing survey growth data.

The BSE Sensex is currently trading at 56131.55, up by 449.60 points or 0.81% after trading in a range of 55685.45 and 56140.43. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined by 0.21%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Bankex up by 1.60%, Basic Materials up by 1.09%, Realty up by 0.68%, FMCG up by 0.48% and Auto was up by 0.33%, while Power down by 0.79%, Utilities down by 0.68%, TECK down by 0.59%, Oil & Gas down by 0.53% and Telecom was down by 0.51% were the tio losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 4.36%, HDFC Bank up by 2.39%, HDFC up by 2.28%, Kotak Mahindra Bank up by 1.95% and ICICI Bank up by 1.93%. On the flip side, Infosys down by 1.49%, NTPC down by 1.06%, Power Grid down by 0.99%, Wipro down by 0.56% and HCL Tech down by 0.25% were the top losers.

Meanwhile, amid growing concerns about a weaker rupee, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the rupee is holding up relatively well when compared to the currencies of emerging market peers and advanced economies.

The statement came days after the domestic currency breached the 80-level against the dollar. The RBI Governor also noted that the Reserve Bank of India has zero tolerance for volatile and bumpy movement in the rupee and added that the central bank's actions have helped in smoother movement.

Besides, he said that the RBI has been supplying US dollars to the market to ensure an adequate supply of liquidity to the market and also clarified that the central bank does not target a particular level for the currency. Das said there was no need to be alarmed by unhedged exposures to foreign borrowings. The bulk of such exposures are by state-owned companies and the government can pitch in with help if need be.

On the inflation front, Shaktikanta Das said that the inflation targeting framework has worked well since adopting it in 2016 and stressed that the same should continue in the interest of the economy and the financial sector.

The CNX Nifty is currently trading at 16726.50, up by 121.25 points or 0.73% after trading in a range of 16610.90 and 16738.85. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 4.38%, UPL up by 2.95%, Eicher Motors up by 2.55%, HDFC Bank up by 2.45% and HDFC up by 2.33%. On the flip side, Infosys down by 1.63%, NTPC down by 1.29%, Tata Consumer down by 1.23%, Power Grid down by 1.08% and JSW Steel down by 0.79% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 111.66 points or 0.4% to 27,914.66, Hang Seng increased 34.51 points or 0.17% to 20,609.14, Straits Times advanced 31.99 points or 1.01% to 3,184.29, Jakarta Composite soared 22.83 points or 0.33% to 6,886.96 and Taiwan Weighted was up by 11.66 points or 0.08% to 14,949.36. On the flip side, Shanghai Composite declined 2.03 points or 0.06% to 3,269.97 and KOSPI was down by 16.02 points or 0.66% to 2,393.14.

European markets were trading higher, UK’s FTSE 100 increased 17.90 points or 0.25% to 7,288.41, France’s CAC increased 4.63 points or 0.07% to 6,205.74 and Germany’s DAX was up by 7.40 points or 0.06% to 13,254.04.