Markets continue to hold near record high levels on continued buying activities

Going from strength to strength, local equity markets continued to trade near record high level on sustained buying activities by funds and retail investors amidst positive regional counterparts.  At day’s high, both Sensex and Nifty were trading above psychologically crucial 26,550 and 7,950 levels respectively, with gains of over half a percent. Meanwhile, broader indices too contributing to rally, were trading up with gains in the range of 0.35%-0.65% respectively. Strength of bourses were led by stocks from Information Technology (IT), Banking and Oil & Gas counters. On the flip side, stocks from Metal, Infra and Realty counters were limiting further upside of the markets.

Oil & gas sector stocks were in limelight after reports suggested that four-member committee of secretaries (CoS) set up by the government, would review the gas-pricing formula will hold its first meeting with stakeholders. Additionally, power stocks also were in demand after reports suggested that government has started the process for setting up four new ultra mega power projects in Bihar, Jharkhand and Odisha, which will together add 16,000 MW capacity to the country's power generation.

On the global front, Asia stocks mostly gained on Monday after comments from U.S. Federal Reserve Chairwoman Janet Yellen at the weekend that signalled growth prospects and a more nuanced view on the timing of a possible hike in interest rates. Meanwhile, European shares got off to a positive start on Monday, buoyed by comments of European Central Bank President Mario Draghi, which raised expectations of further policy easing by the bank. Draghi, speaking at a global central banking conference in Jackson Hole, Wyoming, said late on Friday the bank was prepared to respond with all its 'available' tools should inflation drop further. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1538:1134; while 90 shares remained unchanged.

Closer home, the BSE Sensex is currently trading at 26597.15, up by 177.60 points or 0.67% after trading in a range of 26490.31 and 26623.41. 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 0.37%, while Small cap index up by 0.65%.

The gaining sectoral indices on the BSE were IT up by 1.08%, TECK up by 0.88%, Bankex up by 0.62%, Oil & Gas up by 0.49% and Auto up by 0.49% while, Metal down by 0.87%, INFRA down by 0.30% and Realty down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 2.79%, TCS up by 2.41%, SBI up by 1.55%, Maruti Suzuki up by 1.50% and HDFC up by 1.47%. On the flip side, Hindalco down by 1.62%, Sesa Sterlite down by 1.22%, Tata Steel down by 0.93%, GAIL India down by 0.91% and Tata Power down by 0.91% were the top losers.

Meanwhile, with an aim to enhance the power production in the country, the government has started the process for setting up four new ultra mega power projects (UMPP) in states including Bihar, Jharkhand and Odisha. These four UMPP are likely to add 16,000 MW capacities to the country's power generation. 

The Government has stated that the land for the proposed project in Jharkhand has been acquired while in the case of two UMPPs in Odisha and one in Bihar, the respective state governments have identified suitable sites. The price bids for these proposed plants are yet to be submitted after which the UMPPs will be awarded to industry players. The major industry players like NTPC, Tata Power, NHPC, Adani Power, JSW Energy and Jindal Power have submitted applications for the proposed projects. So far, four UMPPs have been awarded in the country in states Madhya Pradesh and Andhra Pradesh, of which Reliance Power has bagged three plants and Tata Power has bagged one.

In India, electricity is produced with the help of coal, crude oil, water and natural gas. At present industry installed capacity stands at around 248 GW out of which coal-fired plants account for about 59% and hydro plants compromises around 17% of India's installed electricity capacity.

The CNX Nifty is currently trading at 7957.25, up by 44.05 points or 0.56% after trading in a range of 7927.75 and 7963.30. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BHEL up by 3.03%, TCS up by 2.35%, Kotak Mahindra Bank up by 1.70%, SBI up by 1.59% and Indusind Bank up by 1.59%. On the flip side, Jindal Steel & Power down by 3.09%, Hindalco down by 1.95%, Sesa Sterlite down by 1.17%, GAIL India down by 1.17% and United Spirits down by 1.09% were the top losers.

Asian markets were mostly trading in green; KOSPI Index gained 4.19 points or 0.2% to 2,060.89; Taiwan Weighted inched up by 10.52 points or 0.11% to 9,390.62; Straits Times added 16.25 points or 0.49% to 3,341.75; Hang Seng advanced 64.81 points or 0.26% to 25,177.04; Nikkei 225 edged higher 74.06 points or 0.48% to 15,613.25.On the flip side, FTSE Bursa Malaysia KLCI down by 10.52 points or 0.56% to 1,860.47; Jakarta Composite edged lower 8.12 points or 0.16% to 5,190.78 and Shanghai Composite shed 7.66 points or 0.34% to 2,233.15.

European shares were trading in green; with France’s CAC rising by 45.38 points or 1.07% to 4,298.18; Germany’s DAX gaining by 95.09 points or 1.02% to 9,434.26, however UK’s FTSE 100 down by 2.41 points or 0.04% to 6,775.25