Key benchmark indices continued to trade in positive territory in the afternoon session led by gains in frontline blue chip stocks. At present, Sensex and Nifty were trading above the crucial 28,400 and 8,750 levels respectively, with gains of over half percent. Sentiments were on optimistic note with Economic Affairs Secretary Shaktikanta Das’ statement expressing confidence that the economy will grow upwards of 7 per cent next fiscal. He reiterated that there will be transient impact of demonetisation on the economy, but it will not spill over to the next fiscal. Investor sentiment was also boosted by strong global cues as well as the possibility of a rate cut by the Reserve Bank of India after its policy meeting on Wednesday. Moreover, the rupee appreciating by another 12 paise to 67.19 against the dollar in early trade sent out positive vibes to the stock markets. In scrip specific development, JSW Steel was up by over a percent after reporting crude steel production of 13.85 million ton (MT) in January 2017 with a growth of 49% over the corresponding month in 2016.
On the global front, Asian markets were trading in green, as investors tracked a record on Wall Street fuelled by a better than expected jump in US jobs, while financials were boosted by Donald Trump's review of trading regulations. Meanwhile, the latest survey from Caixin showed that the services sector in China continued to expand in January as companies reported a solid increase in orders.
The BSE Sensex is currently trading at 28439.85, up by 199.33 points or 0.71% after trading in a range of 28340.39 and 28477.30. There were 22 stocks advancing against 8 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 1.02%, while Small cap index added 1.04%.
The top gaining sectoral indices on the BSE were Realty up by 3.14%, Bankex up by 1.18%, Power up by 1.17%, Capital Goods up by 1.12% and FMCG up by 1.00%, while IT down by 0.12%, Metal down by 0.09% and TECK down by 0.09% were the losing indices on BSE.
The top gainers on the Sensex were Lupin up by 3.78%, ICICI Bank up by 3.06%, Sun Pharma Inds. up by 2.73%, Asian Paints up by 1.71% and Tata Motors up by 1.44%. On the flip side, Dr. Reddys Lab down by 1.76%, Coal India down by 0.75%, Bajaj Auto down by 0.35%, Tata Steel down by 0.31% and TCS down by 0.25% were the top losers.
Meanwhile, highlighting global ratings agencies for failing to upgrade India's sovereign rating despite significant improvement in macroeconomic parameters, Economic Affairs Secretary Shaktikanta Das has said the agencies are out of touch with India’s reality and are missing out on something which only they can best explain. He added that last upgrade India got was several years ago. He noted that Fitch upgraded India's sovereign rating to BBB in 2006, while S&P in 2007.
Das has said that list out the reform measures which India has undertaken in the last two-and-a-half years, and compare them with the track record of reforms in any other country. He said ‘Look at our GDP, compare with other countries’ GDP. Look at our macroeconomic numbers, inflation, current account deficit, compare with other countries. Now I really do not understand, I think rating companies are missing out on something which only they can explain’.
He said that GST is now happening still no weightage has been given for introduction of GST. Also, there is no resolution mechanism for dealing with stressed assets. Additionally, the government has enacted Insolvency and Bankruptcy Law, but no weightage has been given to that. He also said that the government has passed and implemented Aadhaar legislation which is unique in the world, yet no recognition came India's way. He said 'I think it should be a moment for retrospection. It should be moment of retrospection for rating companies.'
The CNX Nifty is currently trading at 8799.90, up by 58.95 points or 0.67% after trading in a range of 8779.85 and 8809.10. There were 37 stocks advancing against 14 stocks declining on the index.
The top gainers on Nifty were Ambuja Cement up by 5.19%, ACC up by 3.80%, Lupin up by 3.62%, ICICI Bank up by 3.00% and Sun Pharma up by 2.63%. On the flip side, Dr. Reddys Lab down by 1.77%, Idea Cellular down by 1.60%, Tech Mahindra down by 1.19%, HCL Tech. down by 0.95% and Coal India down by 0.94% were the top losers.
The Asian markets were trading in green, FTSE Bursa Malaysia KLCI increased 2.87 points or 0.17% to 1,687.88, KOSPI Index gained 4.5 points or 0.22% to 2,077.66, Shanghai Composite was up by 12.48 points or 0.4% to 3,152.65, Jakarta Composite added 23.9 points or 0.45% to 5,384.67, Nikkei 225 rose 58.51 points or 0.31% to 18,976.71, Taiwan Weighted jumped 82.45 points or 0.87% to 9,538.01 and Hang Seng was up by 146.33 points or 0.63% to 23,275.54.