Markets continue to trade in positive territory

Indian bourses continued to trade in green in the afternoon session as buying momentum in the equities persisted, however the marginal downfall from day's high levels was seen as sharp selling appeared in realty and consumer durables stocks. Domestic benchmarks continued to trade firm as wide-spread gains on the back of sustained capital inflows and covering-up of pending short positions by speculators on the last day of August series expiry in the derivatives segment buoyed market sentiments. Sentiment also got some support as the Reserve Bank of India (RBI) has eased norms to refinance external commercial borrowings (ECB). Oil and gas was top gaining index up by around 0.78% whereas realty was top losing index trading down by around 1.29%. Investors were also seen piling up positions in infra and capital goods stocks. Sector specific, Railway stocks were on buyer's radar as the government notified FDI norms for rail infrastructure, allowing 100% investment through the automatic route.

Rollatainers was locked in upper circuit limit of 5% at Rs 314 on BSE after the company said it signed a pact to launch Wendy's hamburger restaurant chain in India.  Further, Gateway Distriparks was trading higher by 4% at Rs 269 after the initial public offer (IPO) of Snowman Logistics oversubscribed on second day of the bidding.

On global front, Asian markets were trading mixed with Jakarta Composite up by 0.43% and Hang Seng down 0.45%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 7,950 and 26,500 levels respectively. The market breadth on BSE was positive, out of 2,577 stocks traded, 1,266 stocks advanced, while 1,218 stocks declined on the BSE.

The BSE Sensex is currently trading at 26614.59, up by 54.44 points or 0.20% after trading in a range of 26596.67 and 26674.38. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.07%, while Small cap index up by 0.32%.

The gaining sectoral indices on the BSE were Oil & Gas up by 0.78%, Capital Goods up by 0.55%, Auto up by 0.37%, INFRA up by 0.34% and PSU up by 0.32%. On the other hand, Realty down by 1.29%, Consumer Durables down by 0.38%, Power down by 0.37%, IT down by 0.35% and TECK down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 1.79%, Sesa Sterlite up by 1.54%, Tata Motors up by 1.36%, ONGC up by 0.92% and Larsen & Toubro up by 0.90%. On the flip side, Cipla down by 1.15%, Tata Power down by 0.96%, Infosys down by 0.87%, NTPC down by 0.79% and SBI down by 0.70% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has eased norms to refinance external commercial borrowings (ECB). Central bank delegated power to banks to approve even those cases where the average maturity period of the fresh ECB is exceeding the residual maturity of the existing ECB under the automatic route.

However, the RBI suggested the banks that both existing and fresh ECBs should be in compliance with the applicable guidelines, all-in-cost of fresh ECB should be less than that of the all-in-cost of existing ECB and refinancing is to be undertaken before the maturity of the existing ECB. In addition, borrower should not be in the default / caution list of RBI and should not be under the investigation of the Directorate of Enforcement.

The RBI’s notification further highlighted that foreign branches or subsidiaries of Indian banks will not be permitted to refinance an existing ECB this way. This facility will be available even when existing ECB was raised under the approval route, subject to the amount of new ECB being eligible to be raised under the automatic route.  The new norms will come into force with immediate effect. Apex banks noted that all other aspects of the ECB policy such as eligible borrower, recognised lender, amount of ECB, permitted end-use, all-in-cost, reporting arrangements and average maturity period would remain unchanged.

The CNX Nifty is currently trading at 7953.20, up by 17.15 points or 0.22% after trading in a range of 7942.25 and 7967.80. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.35%, Asian Paints up by 2.03%, Sesa Sterlite up by 1.65%, IDFC up by 1.52% and GAIL India up by 1.50%. On the flip side, DLF down by 2.35%, Jindal Steel & Power down by 2.21%, Bank of Baroda down by 1.54%, Cipla down by 1.24% and PNB down by 1.19% were the top losers.

Asian equity indices were trading in green; KOSPI Index up by 0.83 points or 0.04% to 2,075.76, Straits Times up by 6.48 points or 0.19% to 3,347.94, Jakarta Composite up by 22.09 points or 0.43% to 5,187.33. While, Hang Seng down 112.57 points or 0.45% to 24,806.18, Nikkei 225 down 87.03 points or 0.56% to 15,447.79, Shanghai Composite down 11.82 points or 0.53% to 2,197.65 and Taiwan Weighted down 7.22 points or 0.08% to 9,478.37