Benchmarks trade near all time high levels

Indian equity benchmarks, extending their bull run for fifth straight day, were trading near their all time high levels despite lingering concerns about crises in Ukraine. Sentiments remained up-beat as Prime Minister Narendra Modi, in his Independence speech, presented government’s business-friendly side and invited global businesses to make India their manufacturing base. Positive opening in European counters too supported the sentiments with CAC, DAX and FTSE were trading with traction. However, Asian markets were trading mostly in the red as another bout of tensions in the Ukrainian conflict sapped investor confidence.

Back home, overseas investors bought shares worth 6.25 billion rupees on Thursday, provisional exchange data shows. Rally in Infrastructure stocks too supported the sentiments after Centre said it is ready to invite bids for Dholera investment region in Gujarat in the next three months and for integrated industrial townships in Greater Noida and Vikram Udyogpuri in Madhya Pradesh along the Delhi-Mumbai Industrial Corridor. Shares related to textile space too remained on buyers’ radar as foreign direct investment (FDI) of $199 billion was made in India’s textile sector in the financial year 2013-14. Additionally, shares of oil and gas, including oil marketing companies were trading higher by up to 4% on the bourses due to decline in Brent crude oil price.

On the sectoral front, capital goods, public sector undertaking and consumer durables witnessed the maximum gain in trade, while fast moving consumer goods and software remained the only losers on the BSE sectoral space. The broader indices too were trading with traction. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1127:757; while 14 shares remained unchanged.

The BSE Sensex is currently trading at 26236.04, up by 132.81 points or 0.51% after trading in a range of 26075.28 and 26237.85. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.34%, while Small cap index up by 1.78%.

The gaining sectoral indices on the BSE were Capital Goods up by 2.22%, PSU up by 1.57%, Consumer Durables up by 1.50%, Infrastructure up by 1.46% and Bankex was up by 1.45% while, FMCG down by 0.77% and IT was down by 0.49% were the only losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.85%, BHEL up by 2.78%, Tata Power up by 2.70%, Tata Motors up by 2.62% and Cipla up by 2.35%. On the flip side, ITC down by 2.02%, Infosys down by 1.05%, HDFC down by 1.02%, Mahindra & Mahindra down by 0.56% and TCS down by 0.48% were the top losers.

Meanwhile, indicating a positive shift in investor sentiment towards Indian textile industry, foreign direct investment (FDI) in industry has increased by 91.41 percent to $198.86 million during April-March 2013-14 as compared to $103.89 million during previous fiscal.  During the period April-May 2014, the country's textile sector attracted FDI worth $11.70 million.

With an aim to enhance foreign investments in textile sector, the government has taken various policy measures such as technology upgradation fund scheme (TUFS), scheme for integrated textile parks (SITP), integrated skill development scheme (ISDS). Other government supported schemes for the industry include schemes for development of technical textiles and schemes for the development of the powerloom sector.

Textile industry contributes around 4 percent to the gross domestic product (GDP), around 10 percent to the country’s export earnings and nearly 14 percent to industrial production besides providing direct employment to over 45 million people. The present market size of the industry stands at around $90 billion, which is expected to touch $220 billion mark by 2020. Exports have remained a core feature of India’s textile industry and textiles Ministry has set textile export target at $45 billion for the current financial year. The government is also preparing new textile policy which aims to achieve $300 billion exports by 2024-25 and creation of additional 35 million jobs by attracting investments.

Nevertheless, the industry body appreciated government’s proposal for allocation of Rs 1,000 crore for the solar power and setting up of National Rural Internet and Technology Mission.

 The CNX Nifty is currently trading at 7829.60, up by 37.90 points or 0.49% after trading in a range of 7779.20 and 7832.95. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.85%, Tata Power up by 2.92%, Axis Bank up by 2.81%, BHEL up by 2.77% and Tata Motors up by 2.66%. On the flip side, ITC down by 2.05%, Infosys down by 1.23%, HDFC down by 1.03%, TCS down by 0.62% and Mahindra & Mahindra down by 0.52% were the top losers.

Asian markets were trading mostly in the red, Hang Seng decreased 76.59 points or 0.31% to 24,878.35, Taiwan Weighted declined 65.5 points or 0.71% to 9,141.31, KOSPI Index dropped 10.09 points or 0.49% to 2,053.13, Straits Times shed 8.81 points or 0.27% to 3,305.96 and FTSE Bursa Malaysia KLCI was down by 0.95 points or 0.05% to 1,863.36. On the flip side, Nikkei 225 rose 4.26 points or 0.03% to 15,322.60, Jakarta Composite increased 10.13 points or 0.2% to 5,159.09 and Shanghai Composite was up by 10.47 points or 0.47% to 2,237.20.

European markets got off to a positive start; with UK’s FTSE rising 0.61% to 6,729.80; France’s CAC gaining 1.39% to 4,232.29 and Germany’s DAX advancing by 1.40% to 9219.73.