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Indian equities remain in green terrain
Oct-17-2018

Indian equity benchmarks continued their trade in green territory in afternoon session, on buying by funds and retail investors. Sentiments remained positive with up report that India has been ranked as the 58th most competitive economy on the World Economic Forum’s global competitiveness index for 2018, which was topped by the US. The WEF said India’s rank rose by five places from 2017, the largest gain among G20 economies. Some support also came with Reserve Bank of India’s (RBI) report that the share of investments in gross domestic product (GDP) will rise to 33% by FY23 from 31.4% recorded in the last fiscal, suggesting that the upturn in the current investment cycle that started in FY17 could last for five more years. Moreover, encouraging second quarter earnings by tech major Infosys and positive global cues too supported the markets. However, market gave up most of their early gains as anxiety remained among the local trader with Commerce and Industry Minister Suresh Prabhu’s statement that no country can benefit from the decline in the world trade, and the slowing global economy is a concern for all nations including India.

On the global front, Asian markets are trading mostly in green, as upbeat U.S. corporate earnings results and strong economic data helped offset worries about trade tensions and rising interest rates. Back home, the BSE Sensex is currently trading at 35312.03, up by 149.55 points or 0.43% after trading in a range of 35178.68 and 35605.43. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.66%, while Small cap index was down by 0.59%.

The top gaining sectoral indices on the BSE were FMCG up by 1.09%, IT up by 0.99%, TECK up by 0.85%, Utilities up by 0.32% and Energy up by 0.21%, while Realty down by 1.41%, Auto down by 1.33%, Metal down by 0.79%, Consumer Discretionary Goods & Services down by 0.72% and Oil & Gas down by 0.71% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.44%, Infosys up by 2.16%, Coal India up by 2.15%, Wipro up by 2.14% and Hindustan Unilever up by 1.30%. On the flip side, Yes Bank down by 4.80%, Maruti Suzuki down by 2.15%, Mahindra & Mahindra down by 1.57%, ONGC down by 1.39% and Tata Steel down by 1.38% were the top losers.

Meanwhile, Finance Minister Arun Jaitley has said that India needs strong and decisive leadership at the Centre to promote growth, get rid of poverty and transform the country into a developed nation. Outlining the challenges for India, he said being a net buyer of oil, the increase in global crude oil prices adversely impacts the country and hence the economy has to be strong to deal with it. He added noted that a weak leadership, within days of crisis, could not have handled IL&FS the way the present government did, and therefore a crisis in the making was handled with swiftness.

Talking about the political challenges facing the country, the minister said that these are thrown up by unstable coalition and aspiring politicians, who want to acquire the top place. Therefore, he pointed out that today what India needs is not individuals with lack of understanding of policies, lack of understanding of directions or inherently unstable coalition, but a government and leadership with absolute clarity about the direction so that this unique position referred to as a sweet spot by the International Monetary Fund (IMF) can be occupied for the next two decades.

Stating that domestic policies of certain countries have spillover effects on India, Jaitley hoped that such effects will not be everlasting and are transient in character. He said 'as a fast growing economy we have the capacity to face these challenges.' He noted that global oil prices, which have risen because of artificial shortages, has adversely impacted India. He informed that India imports 83 percent of its oil needs. Therefore, he said ‘we have to face that challenge by making our economy so resilient itself that we have the capacity to bear that challenge.'

The CNX Nifty is currently trading at 10607.00, up by 22.25 points or 0.21% after trading in a range of 10566.60 and 10710.15. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 2.72%, Wipro up by 2.51%, Infosys up by 2.40%, ITC up by 2.39% and Coal India up by 2.39%. On the flip side, Indiabulls Housing Finance down by 9.35%, Yes Bank down by 4.84%, BPCL down by 3.39%, Bajaj Finance down by 3.16% and Bajaj Finserv down by 2.46% were the top losers.

Asian markets are trading mostly in green; KOSPI rose 22.39 points or 1.03% to 2,167.51, Straits Times surged 45.28 points or 1.47% to 3,079.59, Shanghai Composite was up by 14.03 points or 0.55% to 2,560.36, Nikkei 225 added 291.88 points or 1.28% to 22,841.12 and Jakarta Composite soared 34.67 points or 0.59% to 5,835.49. On the flip side, Taiwan Weighted was down by 1.96 points or 0.02% to 9,979.14.
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