Asian stock markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.2% while the Hang Seng is down 1.1%. The Shanghai Composite is trading up by 0.1%. US stocks ended their four-day winning streak on Thursday as trade anxieties resurfaced.
Back home, India share markets have opened the day on a flat note with a negative bias. The BSE Sensex is trading down by 27 points while the NSE Nifty is trading up by 3 points. The BSE Mid Cap index opened up by 0.4% and BSE Small Cap index opened the day up by 0.3%. The rupee slipped to a new low of 71 per dollar in opening trade.
Barring bank stocks, all sectoral indices have opened the day in green with healthcare stocks and power stocks witnessing maximum buying interest.
Market participants will also track the June-quarter GDP data, due later today. For the quarter ended March 31, the GDP growth rate stood at 7.7%.
In 2018, the MSCI India index outperformed other indices. In 2018, the MSCI India equity index is down marginally by 0.4%. Speaking of the Indian economy, the country is on a strong footing. The MSCI or Morgan Stanley Capital International index is used to measure equity market performance in global emerging markets. It is used as a common benchmark for global stock funds.
India Outperforms Former Fragile Five Peers
Whereas, other countries which were part of fragile five are down in the range of 15-52% The worst performer is obviously the MSCI Turkey, which tanked by whopping 52% in 2018.
Certainly, global investors have recognized the strength of the Indian economy.
Talking of strength, the Indian economy is showing signs of economic recovery.
For example, capacity utilization is picking up. IIP and GDP numbers are improving. Indian corporates are getting back to their capex plans.
Tanushree's StockSelect recommendation this month is firmly poised to gain from the revival of capex cycle.
In the news from the telecom sector. In the latest development, the National Company Law Tribunal (NCLT) has approved the merger of Idea Cellular and the Indian unit of Vodafone Group.
Reportedly, the newly merged entity will overtake Bharti Airtel as India's largest mobile phone operator. The Vodafone-Idea merger, announced in March 2017, will topple Bharti Airtel and create a behemoth with 438.8 million subscribers.
Idea, a part of the Aditya Birla conglomerate, and Vodafone signed a merger agreement last year, which could create the country's biggest telecom operator. Approval from the Tribunal was the only outstanding regulatory requirement.
The Department of Telecommunications recently gave its approval to the merger.
Vodafone India and Idea had in March outlined the key leadership team to head the merged entity.
Aditya Birla Group's chairman Kumar Mangalam Birla was named the non-executive chairman of Vodafone Idea Ltd while Balesh Sharma, currently the chief operating officer of Vodafone India, was named the chief executive officer.
Idea Cellular share price opened up by 4.7%.
Moving on to the news from the oil & gas sector. As per an article in a leading financial daily, Indian Railways and GAIL (India) signed a Memorandum of Understanding towards expanding usage of environment-friendly fuel, Natural Gas across all applications of the Indian Railways.
Reportedly, this historic partnership will pave the way for supply of Natural Gas to Railway workshops, integral coach factories, loco workshops, DEMU sheds, etc. located along the existing and upcoming pipeline networks of GAIL.
Along the prestigious eastern India pipeline project under execution- 'Pradhan Mantri Urja Ganga' network alone there is a scope to supply natural gas to over 10 workshops of Indian Railways and shall be connected in a phased manner.
MoU between the two leading organizations of the country is a step towards fulfilling Central Government's vision of developing a Gas-based economy in India and progress towards expanding the share of Natural Gas in the energy mix from 6.5 % to 15 %.
GAIL share price opened the day up by 1.6%.
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