Benchmarks trade jubilantly on firm global cues

Extending their previous session's gains, Indian equity benchmarks have made a gap-up opening and are trading jubilantly in early deals on Wednesday on euphoric global cues. The US markets rallied in the last session supported by some good earnings and better than expected economic data, as there was a notable improvement in consumer confidence in the month of October. The Asian markets were trading in the green at this point of time tailing the rally in the US peers, ahead of a Federal Reserve policy announcement.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Both the frontline gauges recaptured their crucial 27,000 (Sensex) and 8,050 (Nifty) bastion. Buying in realty and infra counters also aided the sentiments as the Cabinet may on decide on relaxing foreign direct investment (FDI) norms in construction sector. Meanwhile, Indian rupee was trading marginally higher at 61.2750 versus its previous close of 61.32/33 ahead of Fed meet outcome due after market hours.

None of the sectoral indices were trading in the red, while consumer durables and realty witnessed the maximum gain in trade. Auto, FMCG, metal, public sector undertaking, infrastructure, software and technology too were trading significantly. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1389 shares on the gaining side against 502 shares on the losing side while 71 shares remain unchanged.

The BSE Sensex opened at 27017.44; around 137 points higher as compared to its previous closing of 26880.82, and has touched a high and a low of 27062.12 and 26991.03 respectively. The BSE Sensex is currently trading at 27059.07, up by 178.25 points or 0.66%. There were 24 stocks advancing against 6 stocks declining on the index.

The overall market breadth remained in the favour of advances with 70.80% stocks advancing against 25.59% declines. The broader indices were trading in green; the BSE Mid cap index was up by 0.69%, while Small cap index up by 0.99%.

The gaining sectoral indices on the BSE were Realty up by 1.41%, Consumer Durables up by 1.14%, Auto up by 1.08%, FMCG up by 0.96% and Metal up by 0.84%, while there were no losers on the indices.

The top gainers on the Sensex were Tata Motors up by 1.85%, Tata Steel up by 1.57%, Cipla up by 1.48%, Hero MotoCorp up by 1.40% and Mahindra & Mahindra up by 1.37%. On the flip side, NTPC down by 0.41%, GAIL India down by 0.38%, Sesa Sterlite down by 0.34%, BHEL down by 0.18% and Bharti Airtel down by 0.16% were the top losers.

Meanwhile, private equity investments during July-September quarter of current fiscal grew by 47 percent to $3.1 billion over the corresponding period last year. According to the report prepared by advisory firm Grant Thornton, PE investments in India amounted to $3.12 billion through 157 deals in the reported quarter, while in the corresponding period last year there were 115 such transactions worth $2.12 billion.

The report highlighted that private equity witnessed a 47 percent increase in values led by the billion dollar investment in Flipkart and 37 percent increase in volumes driven by the IT&ITeS sector with over 40 percent share in total deal volume. The Q2 FY15 also witnessed several big ticket deals as 15 investments were over $50 million each, including two over $100 million and one billion dollar investment.

The report further highlighted that as business sentiments renewed in the country, this momentum of deal activity will continue to increase and the sectors such as infrastructure, energy, consumer and financial services are likely to witness high PE deal activities. So far in 2014, PE investments recorded at $8.4 billion as against $7.8 billion in 2013, with 38 percent higher volumes in 2014 as compared to 2013, led by the technology sector.

The CNX Nifty opened at 8,077.05; around 50 points higher as compared to its previous closing of 8,027.60, and has touched a high and a low of 8,081.05 and 8,059.25 respectively.

The CNX Nifty is currently trading at 8076.55, up by 48.95 points or 0.61%. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.98%, Tata Motors up by 1.83%, Cairn India up by 1.79%, Tata Steel up by 1.53% and Cipla up by 1.45%. On the flip side, Sesa Sterlite down by 0.56%, GAIL India down by 0.44%, Kotak Mahindra Bank down by 0.41%, Lupin down by 0.41% and NTPC down by 0.37% were the top losers.

Asian markets were trading in the green; Nikkei 225 spurted by 229.19 points or 1.50% to 15,559.10, Hang Seng gained 318.86 points or 1.36% to 23,839.22, KOSPI Index inched up 28.80 points or 1.50% to 1,954.48, Straits Times added 11.03 points or 0.34% to 3,222.68, Jakarta Composite surged by 44.23 points or 0.88% to 5,045.53, Shanghai Composite jumped 32.25 points or 1.38% to 2,370.12, FTSE Bursa Malaysia KLCI climbed 11.97 points or 0.66% to 1,837.65 and Taiwan Weighted was up by 108.03 points or 1.23% to 8,881.58.