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Barometer gauges maintain gains
May-21-2019

Stock markets were trading firm as investors’ euphoria over exit poll outcome continued in early noon session with Sensex and Nifty trading above 39450 and 11850 levels respectively. Buying in frontline stocks such as Reliance Industries, HDFC and Sun Pharma were aiding sentiment, while selling in Tata Motors, Indusind Bank and Yes Bank kept the gains in the markets in check. Sentiments remained up-beat as IHS Markit report stated that the India’s economic policy will continue to focus on maintaining strong economic growth and creating jobs for the country’s large and growing population. However, gains remained limited as Alyssa Ayres from the Council on Foreign Relations think tank has believed that the next Indian government to be formed after the declaration of the election results on May 23 faces crucial foreign policy decisions, particularly in the economic realm. Investors took note of a private report stating that the Reserve Bank of India (RBI) will take a relook at its supervision structure for banks, finance companies and other entities regulated by the central bank. It will initiate a discussion with its board of directors on a proposal to overhaul the crucial job of supervision so that the regulator is better equipped in picking up early warning signs.

On the global front, Asian markets were trading mixed, as restrictions on Chinese telecom equipment maker Huawei Technologies raised concerns that the move would further inflame trade tensions between the US and China. Back on street, in scrip specific development, shares of JK cement edged up on reporting a rise of 55.49% in its net profit at Rs 149.97 crore for the quarter ended March 31, 2019 as compared to Rs 96.45 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 39450.67, up by 98.00 points or 0.25% after trading in a range of 39328.26 and 39571.73. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.16%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Energy up by 1.07%, Healthcare up by 0.60%, Consumer Durables up by 0.59%, FMCG up by 0.57% and Realty was up by 0.30%, while Auto down by 1.22%, PSU down by 1.20%, Oil & Gas down by 0.92%, Industrials down by 0.83% and Metal was down by 0.79% were the losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.38%, HDFC up by 1.85%, Sun Pharma up by 1.58%, Bajaj Finance up by 1.11% and ITC was up by 0.83%. On the flip side, Tata Motors down by 4.89%, Tata Motors - DVR down by 4.56%, Indusind Bank down by 1.74%, Yes Bank down by 1.57% and Tata Steel was down by 1.54% were the top losers.

Meanwhile, former Reserve Bank of India (RBI) Governor Bimal Jalan has said that the Prime Minister Narendra Modi-led government has taken a number of reforms but further needs to be done by the next government on the implementation front to ensure employment generation. He also said that the government should take up administrative reforms that are complicated but essential for the implementation of government policies.

Talking about what economic reforms need to be taken by the next government, Jalan said the next government should implement policies that are already announced. Moreover, he said ‘equally important is the administrative reforms, at the moment, the administrative structure is highly complicated, and for anything you want to do, you probably require 15-16 approval by the central government.’

Therefore, former RBI Governor has stated that the role of the central government in the policy making is important but in the implementation, the state governments should be given more power.

The CNX Nifty is currently trading at 11852.65, up by 24.40 points or 0.21% after trading in a range of 11811.70 and 11883.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 3.91%, Dr. Reddys Lab up by 3.65%, Reliance Industries up by 2.39%, Britannia up by 1.96% and HDFC was up by 1.84%. On the flip side, BPCL down by 5.36%, Tata Motors down by 5.02%, Adani Ports &Special down by 3.32%, Indian Oil Corporation down by 2.73% and Tata Steel was down by 1.95% were the top losers.

Asian markets were trading mixed; KOSPI rose 5.39 points or 0.26% to 2,061.10, Taiwan Weighted strengthened 70.35 points or 0.68% to 10,468.76, Jakarta Composite soared 55.58 points or 0.94% to 5,962.70 and Shanghai Composite was up by 37.83 points or 1.32% to 2,908.43.

On the other hand, Nikkei 225 slipped 44.82 points or 0.21% to 21,256.91, Straits Times trembled 13.72 points or 0.43% to 3,191.74 and Hang Seng was down by 1.07 points or 0% to 27,786.54.
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