Benchmarks continue firm trade; Sensex above 25000 mark

Indian equity benchmarks continued their firm trade in the late afternoon session on account of buying in frontline counters and taking cues from regional counterparts. The sentiments were optimistic after the latest data showed easing of retail inflation in June 2014, reigniting hopes that RBI could consider slashing rates in its third bi-monthly monetary policy scheduled on August 5, 2014. The inflation data is also seen countering the negative vibes due to the deficient monsoon so far. Traders were seen piling up positions in Consumer Durables, Bankex and Capital Goods while selling was witnessed in FMCG, HealthCare and IT sector stocks. In scrip specific development, DCB Bank was trading firm after the private sector lender reported a net profit of Rs 45 crore, in the three months to June, as against Rs 43 crore during the same period last year.

On the global front, the Asian markets were trading mostly in green, while the European markets traded on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 7,450 and 25,000 levels respectively. The market breadth on BSE was positive in the ratio of 1615:1136 while 84 scrips remained unchanged.

The BSE Sensex is currently trading at 25059.20, up by 52.22 points or 0.21% after trading in a range of 25236.66 and 25020.32. There were 16 stocks advancing against 14 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 1.01%, while Small cap index up by 1.32%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.72%, Bankex up by 1.32%, Capital Goods up by 1.10%, PSU up by 1.08% and Realty up by 0.90% while, FMCG down by 0.19%, HealthCare down by 0.18%, IT down by 0.15%, TECK down by 0.07% and Metal down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.47%, SBI up by 2.19%, Mahindra & Mahindra up by 1.56%, ONGC up by 1.54% and BHEL up by 1.39%. On the flip side, Dr. Reddy’s Lab down by 2.35%, Hero MotoCorp down by 2.14%, SSLT down by 2.10%, NTPC down by 1.86% and Hindalco Industries down by 1.47% were the top losers.

Meanwhile, with an aim to enhance India’s apparel exports, the Apparel Exports Promotion Council (AEPC) has asked the government to expedite finalization of India-EU Free Trade Agreement (FTA) to enable better market access for Indian exporters. India's total apparel exports stood at $15.7 billion in 2013.

Over the past few years, India’s exports to FTA countries have increased significantly after signing of the FTA/PTA (Preferential Trade) agreements and these markets now account for around 12% share in India's clothing exports. The AEPC recommended the government to expedite the process of India-EU FTA finalization as India's competitors like Bangladesh, Vietnam and Cambodia, having FTA with European nations, are enhancing their market shares in these markets. 

Exports have remained a core feature of India’s textile industry and 'readymade garments' is the largest export segment, accounting for a considerable 40 percent of total textile exports. India’s textile exports accounted around $40 billion in the FY14 and is likely to touch $50 billion mark in the current fiscal. In order to enhance the global competitiveness of textile industry, the government is presently preparing a new National Textiles Policy, which aims to formulate a stable and fibre neutral raw materials guidelines to benefit the entire value chain and to address modernization and mechanization needs of the textile industry.

The CNX Nifty is currently trading at 7475.40, up by 21.25 points or 0.29% after trading in a range of 7524.20 and 7459.15. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 2.53%, NMDC up 2.31%, SBI up by 2.28%, Bank of Baroda up by 1.63% and United Spirits up by 1.57%. On the flip side, Dr. Reddy’s Lab down by 2.41%, NTPC down by 1.96%, SSLT down by 1.95%, Hero MotoCorp down buy 1.73% and Hindalco down by 1.53% were the top losers. 

Asian markets were trading mostly into positive territory; KOSPI Index added 0.94%; Jakarta Composite advanced 0.84%; Taiwan Weighted gained 0.51%; Hang Seng added 0.49%; Nikkei 225 increased 0.64% and Shanghai Composite added 0.18%.

On the flip side, Straits Times down by 0.04%. Malaysian Stock Exchange was closed today on account of ‘Malaysia - Nuzul Al-Quran’ holiday.

The European markets were trading mostly in red; Germany’s DAX was down by 0.17%, France’s CAC 40 dropped 0.17% while, UK’s FTSE 100 was up by 0.23%.