Benchmarks trade near life time high levels on sustained buying activities

Benchmark equity indices, scaling fresh intra-day high levels, were trading near life time highs of 27,250 (Sensex) and 8,150 (Nifty) levels, with gains of over three fourth of a percent. However, while Sensex retracted a bit from its life time high 27,250 level, Nifty held above its psychologically crucial 8150 mark. Meanwhile, broader indices outperforming larger peers by fat margins were trading with gains in the range of 1.15%-2.00%.

Sustained buying activities by funds and retail investors after previous few sessions of consolidation, mainly has led to this cheer at Dalal Street right from the start despite mixed global cues. While, Asian pacific shares made a mix close, European shares continued to trade mostly negative in early deals after an opinion poll showed supporters of Scottish independence from Britain taking the lead for the first time since the referendum campaign began.

Closer home, much of the sectoral indices on BSE were trading into positive territory; however those from Power and Consumer Durables counters proved to be an exception. On the flip side, much of the demand was witnessed by stocks from Oil & Gas, followed by Metal and Fast Moving Consumer Goods counters which were the top gainers of the session. Meanwhile, in stock-specific activities, shares of tyre companies like Ceat, Apollo Tyres, JK Tyres and MRF Tyres surged 2 on Monday riding on decline in rubber prices. According to Rubber Board of India, domestic rubber prices have seen sharpest fall in five years, hitting Rs 126 per kg. Rubber prices are down 25 percent since average of Rs 169/kg seen in January. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1988:899; while 97 shares remained unchanged.

The BSE Sensex is currently trading at 27246.20, up by 219.50 points or 0.81% after trading in a range of 27144.56 and 27262.25. There were 25 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.17%, while Small cap index up by 1.99%.

The gaining sectoral indices on the BSE were Oil & Gas up by 1.37%, FMCG up by 1.05%, Bankex up by 1.02%, Metal up by 1.02%, IT up by 0.95% while, Consumer Durables down by 0.24%, Power down by 0.22% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.53%, ONGC up by 2.09%, HDFC Bank up by 1.50%, Bajaj Auto up by 1.41% and TCS up by 1.31%. On the flip side, NTPC down by 1.47%, Tata Power down by 0.96%, Mahindra & Mahindra down by 0.88% and HDFC down by 0.35% were the top losers.

Meanwhile, with an aim to boost India’s MSME sector’s growth, Union Cabinet Minister of Micro, Small and Medium Enterprises Kalraj Mishra has stated that the government will soon introduce a new comprehensive policy for the MSME sector after incorporating suggestions from related associations. Highlighting the importance of the MSME sector, the Minister said that the country would become a developed nation on the strength of this sector and the new policy will introduce measures to create progressive environment for small industries’ growth. 

By adding further, Kalraj Mishra stated that the government is making several efforts for addressing issues related to loan sanction for micro industries, skill development, implementing e-governance system to improve governance and introducing mechanism to simplify the process to seek NOC in a time-bound manner.

The MSME sector contributes around 8% of the country's GDP, 45% of the manufactured output and provides employment to over 8 crore people. Further, to boost the country's micro, small and medium enterprises sector (MSMEs), the government has allocated Rs 24,124 crore for sector during the Twelfth Five-Year Plan period (2012-17) which is 133.53 percent higher than allocation of Rs 10,330 crore during the Eleventh Plan.

The CNX Nifty is currently trading at 8153.15, up by 66.30 points or 0.82% after trading in a range of 8126.15 and 8156.70. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 4.63% and Grasim Industries up by 2.79% and Hindalco up by 2.65% and Ambuja Cement up by 2.33% and ONGC up by 1.86%. On the flip side, Power Grid Corporation down by 1.79%, NTPC down by 1.44%, Tata Power down by 1.25%, NMDC down by 1.08% and Mahindra & Mahindra down by 1.00% were the top losers.

Asian pacific shares were trading mostly higher; FTSE Bursa Malaysia KLCI increased 2.63 points or 0.14% to 1,871.09; Jakarta Composite increased 32.17 points or 0.62% to 5,249.50 and Nikkei 225 increased 36.43 points or 0.23% to 15,705.11. On the flip side,Hang Seng decreased 49.7 points or 0.22% to 25,190.45;  and  Straits Times decreased 5.9 points or 0.18% to 3,335.83.Stock markets of China, South Korea and Taiwan remained shut for the trade today. 

European shares were trading mostly lower; with  UK’s FTSE 100 were trading lower by 42.08 points or 0.61% to 6,813.02 and France’s CAC lost 14.98 points or 0.33% to 4,471.51, while Germany’s DAX were trading up by 0.54 points or 0.01% to 9,747.56.