Markets trade firm in afternoon session amid firm global cues

Indian equity benchmarks continue to trade firm in afternoon session on the back of sharp buying witnessed in auto, IT and consumer durables stocks amid firm Asian cues. Sustained foreign capital inflows, increased buying by retail investors, covering up of short positions by speculators ahead of tomorrow’s monthly expiry in the derivatives segment bolstered markets sentiment and most of the sectoral indices were trading in green. Buying was broad based with both small cap and mid cap indices trading up by over 0.40%. Sentiments also got some support as central government asked states to appoint export commissioners to expedite efforts to boost country’s overseas shipments. Shares of defence equipment manufacturers have been trading higher by up to 6% after the government decided to allow foreign direct investment in defence sector. Oil and gas stocks were also on buyer's radar as Oil Ministry proposed for deregulation of diesel prices after retail rates achieve parity with global levels. However, power, infra and metal stocks were under pressure.

Havells India, extending its previous day’s 10% surge, has rallied 6% to Rs 289, after the stock turned ex-stock split on Tuesday. Further, shares of IIFL Holdings was locked in 5% upper circuit at Rs 135 after the company said it has received registration from capital market regulator SEBI to offer investment advisory services.

On global front, most of the Asian markets were trading in green with Shanghai Composite up by 0.04% and Nikkei 225 up by 0.03% as record close on Wall Street fuelled by positive data on the US economy triggered buying activity. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,950 and 26,500 levels respectively. The market breadth on BSE was positive, out of 2,577 stocks traded, 1,082 stocks advanced, while 1,406 stocks declined on the BSE.

The BSE Sensex is currently trading at 26558.41, up by 115.60 points or 0.44% after trading in a range of 26544.54 and 26599.12. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.48%, while Small cap index up by 0.88%.

The gaining sectoral indices on the BSE were Auto up by 0.88%, IT up by 0.83%, Consumer Durables up by 0.81%, TECK up by 0.62% and FMCG up by 0.55%. On the other hand, Power down by 0.85%, INFRA down by 0.52% and Metal down by 0.37% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.25%, Bajaj Auto up by 1.69%, Tata Motors up by 1.65%, ONGC up by 1.60% and Dr. Reddys Lab up by 1.39%. On the flip side, NTPC down by 2.34%, Sesa Sterlite down by 0.96%, GAIL India down by 0.77%, HDFC Bank down by 0.58% and Reliance Industries down by 0.31% were the top losers.

Meanwhile, in order to enhance India’s exports, the central government has asked states to appoint export commissioners to expedite efforts to boost country’s overseas shipments. The government is of the view that export commissioner would help in ensuring easing of bottlenecks and development of infrastructure through appropriate allocation of plan resources.

Over the past few months, Commerce Ministry has been taking various measures to involve state governments to boost country's exports. States’ nodal officers have been asked to develop export strategy, work with the state governments to implement such strategies and also prepare a list of infrastructure projects which will ensure full potential of exports growth. In last month, Commerce and Industry Minister Nirmala Sitharaman had written to the Chief Ministers of 15 states regarding their involvement in expansion of exports to help contain the current account deficit.

During April-July’FY15, the value of India’s overseas shipments increased by 8.62% to $107.84 billion from $99.28 billion in the same period of previous financial year. India’s export is likely to continue this growing trend given the improving global trade scenario with positive developments in the EU, US and emerging economies. Further, the government will announce new Foreign Trade Policy (FTP) for the period 2014-19 by end of September, which is expected to abolish conventional method of exports and promote exports of specific products in specific geographies.  

The CNX Nifty is currently trading at 7932.10, up by 27.35 points or 0.35% after trading in a range of 7929.50 and 7946.85. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 3.03%, ICICI Bank up by 2.36%, Bajaj Auto up by 1.77%, Tata Motors up by 1.70% and Jindal Steel & Power up by 1.69%. On the flip side, NTPC down by 2.38%, Kotak Mahindra Bank down by 1.81%, Power Grid Corpn. down by 1.79%, BHEL down by 1.12% and GAIL India down by 0.96% were the top losers.

Asian equity indices were trading in green; Shanghai Composite up by0.81 points or 0.04% to 2,207.91, Nikkei 225 up by4.26 points or 0.03% to 15,525.48, KOSPI Index up by6.88 points or 0.33% to 2,074.93, Jakarta Composite up by16.76 points or 0.33% to 5,163.31, Straits Times up by19.97 points or 0.6% to 3,342.99 and Taiwan Weighted up by91.63 points or 0.98% to 9,485.59. While, Hang Seng down 13.16 points or 0.05% to 25,061.34.