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Markets continue to trade higher in tight band

Indian benchmark indices continued to trade in tight band with a gain of over quarter a percent in late afternoon session, led by IT stocks on hopes that U.S. President-elect Donald Trump may not proceed with stringent visa rules. Sentiments remained upbeat with Finance Minister Arun Jaitley’s statement that the implementation of the Goods and Services Tax (GST), coupled with a digitised economy ushered in by demonetisation, will make India’s economy look much cleaner and bigger. On sectoral front, pharma sector stocks came under pressure with U.S. President Trump’s statement that the pharmaceutical companies are getting away with murder in what they charge the government for medicines, and promised that would change in his first presser.

On the global front, European markets were trading in red as U.S. President-elect Donald Trump's first press conference since winning the election proved to be a dampener for investors looking for clues on his tax and international trade policies. Asian markets were trading mostly in green. Back home, in scrip specific development, Steel Strips Wheels was trading in green after the company bagged exports order for supply of Caravan Steel wheels for EU Trailer market.

The BSE Sensex is currently trading at 27230.61, up by 90.20 points or 0.33% after trading in a range of 27166.69 and 27278.93. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.05%, while Small cap index was down by 0.14%.

The top gaining sectoral indices on the BSE were Power up by 3.08%, IT up by 1.45%, Capital Goods up by 1.38%, TECK up by 1.13% and PSU up by 1.08%, while FMCG down by 0.73%, Auto down by 0.34%, Metal down by 0.17% and Consumer Durables down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.41%, Power Grid up by 4.14%, Larsen & Toubro up by 2.46%, Infosys up by 2.27% and ONGC up by 1.85%. On the flip side, Lupin down by 1.68%, Dr. Reddys Lab down by 1.65%, Coal India down by 1.44%, Sun Pharma down by 1.18% and ITC down by 1.05% were the top losers.

Meanwhile, in order to speed up economic growth and make economy more inclusive by focusing on the health sector, National Institution for Transforming India (NITI) Aayog will come out with three-year action plan within two months. The action plan will also consider the impact of demonetisation of high value notes on the economy, especially on informal sector.

In a three-year action plan which will unveil after the Union budget for 2017-18 is presented, the Aayog has made recommendation to increase social sector spending three times, partially by cutting down on mega subsidies as well as diverting extra revenues to sectors such as health and education. NITI Aayog’s action plan will not contain revenue projection for 2017-18, though it will have the details for 2018-19 and 2019-20.

Furthermore, the 12th Plan (2012-17) is the last five-year Plan and from 2017-18, the Centre would adopt a three-year action plan and a fifteen-year vision document. However the 12th Five-Year Plan appraisal document, prepared by NITI Aayog has made a strong case for clear tax policies and focus on manufacturing, even as it exuded confidence that growth in 2016-17, the final year of the Plan would be 7 per cent to 7.75 per cent.

The CNX Nifty is currently trading at 8401.15, up by 20.50 points or 0.24% after trading in a range of 8382.30 and 8417.20. There were 23 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were NTPC up by 5.35%, Power Grid up by 4.16%, Tata Power up by 3.12%, Larsen & Toubro up by 2.66% and Infosys up by 2.21%. On the flip side, Idea Cellular down by 3.55%, Lupin down by 1.88%, Aurobindo Pharma down by 1.82%, Dr. Reddys Lab down by 1.54% and Coal India down by 1.53% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 4.27 points or 0.25% to 1,679.48, Jakarta Composite increased 6.62 points or 0.12% to 5,307.85, KOSPI Index increased 11.97 points or 0.58% to 2,087.14, Taiwan Weighted increased 16.82 points or 0.18% to 9,392.68 and Nikkei 225 increased 230.9 points or 1.23% to 18,996.37. On the flip side, Hang Seng decreased 106.33 points or 0.46% to 22,829.02 and Shanghai Composite decreased 17.46 points or 0.56% to 3,119.29.

All European markets were trading in red; Germany’s DAX decreased 70.13 points or 0.6% to 11,576.04, France’s CAC decreased 29.64 points or 0.61% to 4,859.07 and UK’s FTSE 100 decreased 23.96 points or 0.33% to 7,266.53.

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