Markets pare some early gains

Indian bourses continued to trade in green in the afternoon session as buying momentum in the equities persisted, however a marginal downfall from intra-day high levels was seen as selling appeared in FMCG and banking stocks. Continuing its rising streak for the fifth straight session, major indices were trading firm on the back of continued foreign capital inflows coupled with a firming trend in Asian markets. Besides, widespread buying by retail investors and firm global factors with crude oil prices falling to multi-month lows also strengthened the domestic equity benchmarks. Most of the sectoral indices were trading in green with IT as the top gaining index trading up by around 2.12% followed by Tech and infra indices both trading up by over 2% and 0.70%. Broad based buying was witnessed with both mid and small cap indices trading up by over 0.50%. The technology stocks were trading higher on the back of firm US manufacturing activity data. In stock specific movement, Tata Motors surged more than 2% to Rs 528 after receiving an order of approximately 2,700 Urban buses under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM)- II scheme.

On global front, Asian markets were trading in green with Straits Times up by 0.22% and Jakarta Composite up by 0.23% as improved US macro-economic data buoyed the global investors’ sentiments. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,100 and 27,000 levels respectively. The market breadth on BSE was positive, out of 2,684 stocks traded, 1,442 stocks advanced, while 1,130 stocks declined on the BSE.

The BSE Sensex is currently trading at 27148.29, up by 128.90 points or 0.48% after trading in a range of 27067.02 and 27198.80. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 0.62%.

The gaining sectoral indices on the BSE were IT up by 2.12%, TECK up by 2.06%, INFRA up by 0.71%, Realty up by 0.59% and Capital Goods up by 0.57%. On the flip side, FMCG down by 0.16%, Bankex down by 0.07%, PSU down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.65%, TCS up by 2.53%, Infosys up by 2.31%, Wipro up by 2.25% and Tata Motors up by 1.53%. On the flip side, GAIL India down by 2.09%, Hero MotoCorp down by 1.27%, ITC down by 0.96%, ICICI Bank down by 0.80% and Bajaj Auto down by 0.76% were the top losers.

Meanwhile, with an aim to enhance the investments in railway sector, Indian Railways has stated that it is presently framing policies to attract private investment as the government has simplified the procedure to remove hurdles in doing business with investors. Minister of State for Railway Manoj Sinha stated that the railways finalized five public-private partnership (PPP) models for the development of stations, freight terminal, rail over bridge (ROB) or rail under bridge (RUB) and port connectivity.

Manoj Sinha further stated that trains will also be run on PPP model for tourism purpose. Some tourist trains in religious circuits can also be run by private players. Admitting that there are still some hurdles for attracting more private investments, Minister added that several steps have been taken in the recent past to decentralize the system and all remaining hurdles will be removed in a month.

The government has allowed 100 percent foreign direct investment (FDI) in railways.  Barring operation, FDI is allowed in eight areas including high speed, dedicated freight line and suburban trains.  Till now, Indian railways has attracted Rs 16,000 crore private investments.

Indian Railways is an important sector for India and has the potential to raise India's economic growth by over one percent. Therefore, it has become imperative to modernize, strengthen and expand the Indian railway network.  

The CNX Nifty is currently trading at 8113.90, up by 30.85 points or 0.38% after trading in a range of 8092.25 and 8133.10. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 3.84%, TCS up by 2.72% , Infosys up by 2.28%, Wipro up by 2.16% and Tata Motors up by 1.44%. On the flip side, GAIL India down by 2.03%, Jindal Steel & Power down by 1.17%, Hero MotoCorp down by 1.00%, ITC down by 0.97% and BHEL down by 0.92% were the top losers.

Asian equity indices were trading mixed; Straits Times up by7.48 points or 0.22% to 3,335.78, Jakarta Composite up by 12.07 points or 0.23% to 5,213.66, Shanghai Composite up by19.69 points or 0.87% to 2,285.74, Taiwan Weighted up by 50.63 points or 0.54% to 9,450.35, Nikkei 225 up by 78.87 points or 0.5% to 15,747.47, Hang Seng up by 441.89 points or 1.79% to 25,190.91. While, KOSPI Index down 0.38 points or 0.02% to 2,051.20