Benchmark equity indices continued to trade in green in noon session, supported by gains in Telecom, TECK, Consumer Durables and IT sector stocks. Sentiments got some support after most exit polls showed Prime Minister Narendra Modi’s party leading in the race for power in the key electorate state of Uttar Pradesh. Some support also came with rupee strength which was up by 5 paise to 66.66 against the dollar in early trade at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. However, there was some cautiousness too with the ICRA’s report that higher oil and gold imports are likely to widen the current account deficit (CAD) to $30 billion or 1.2 percent of GDP in the fiscal 2017-18 from $20 billion or 0.9 percent of GDP in 2017, arresting the trend of moderation recorded for four consecutive years since fiscal 2014. Meanwhile, Crisil's reported that the Indian economy is likely to see a mild recovery due to pent-up consumption demand after demonetization and expects the GDP growth to rise to 7.4 per cent, up 30 basis points in FY18. In scrip specific development, Rane Holdings was up by around four percent after receiving its board’s approval to set up a wholly owned subsidiary in Germany under the name and style of Rane Holdings Europe GmbH.
On the global front, Asian markets were trading mixed as investors turned cautious ahead of the release of the closely-watched U.S. monthly jobs report on Friday. Back home, the BSE Sensex is currently trading at 28972.27, up by 43.14 points or 0.15% after trading in a range of 28942.52 and 29076.63. There were 18 stocks advancing against 12 stocks declining on the index.
The broader indices were trading mixed; the BSE Mid cap index was down by 0.03%, while Small cap index was up by 0.31%.
The top gaining sectoral indices on the BSE were Telecom up by 1.05%, TECK up by 0.57%, Consumer Durables up by 0.50%, IT up by 0.48% and Capital Goods up by 0.45%, while Oil & Gas down by 0.49%, Energy down by 0.37%, Utilities down by 0.35%, Power down by 0.26% and Metal down by 0.23% were the losing indices on BSE.
The top gainers on the Sensex were Hero MotoCorp up by 1.41%, Infosys up by 1.06%, Bharti Airtel up by 0.96%, TCS up by 0.62% and Larsen & Toubro up by 0.62%. On the flip side, Power Grid down by 1.36%, GAIL India down by 0.67%, ICICI Bank down by 0.55%, ONGC down by 0.50% and Lupin down by 0.33% were the top losers.
Meanwhile, in order to ease the worries of Indian professionals over H1B visa, the government has said that the steps taken by the US were aimed at illegal immigration and added that they would continue to engage with both members of the US administration as well as members of the US Congress on their interests and concerns pertaining to not just H1B visa but other issues as well.
Talking on the discussions held between Foreign Secretary S. Jaishankar with his interlocutors in the US last week, External Affairs Ministry Spokesperson Gopal Baglay has said that there was a strong recognition as well as respect for Indian skills and contribution of the Indian technological manpower to the US economy. He also said it has been India's view that the presence of skilled Indian professionals is positive for the US economy as well, particularly when the US seeks to build a stronger economy. He pointed out that there are other advantages from the presence of Indian professionals in the US like backward linkages.
Calling the H1B visas a trade and business issue, Baglay further said that their views have been clearly conveyed to the concerned US interlocutors. He also said that the government believes that the plans of the US Administration for the US economy present an opportunity for the two countries to further consolidate their strong economic partnership.
The CNX Nifty is currently trading at 8938.85, up by 11.85 points or 0.13% after trading in a range of 8927.85 and 8975.70. There were 30 stocks advancing against 21 stocks declining on the index.
The top gainers on Nifty were Bharti Infratel up by 2.05%, Infosys up by 1.03%, Bharti Airtel up by 0.97%, Hero MotoCorp up by 0.94% and Bosch up by 0.93%. On the flip side, Tech Mahindra down by 2.45%, Power Grid down by 1.39%, BPCL down by 1.23%, GAIL India down by 0.66% and Hindalco down by 0.63% were the top losers.
The Asian markets were trading mixed; KOSPI Index increased 6.29 points or 0.3% to 2,097.35, Hang Seng rose 53.86 points or 0.23% to 23,555.42 and Nikkei 225 gained 286.03 points or 1.48% to 19,604.61. On the flip side, Taiwan Weighted decreased 30.72 points or 0.32% to 9,627.89, Jakarta Composite was down by 18.19 points or 0.34% to 5,384.20 and Shanghai Composite slipped 4.96 points or 0.15% to 3,211.78.