Markets trade flat with positive bias in range-bound session

In the extremely range-bound session of trade, Indian equity benchmarks altering between positive and negative territory, were now trading flat with bit of positive bias on sustained and selective buying by funds and retail investors. Sentiment on the street improved with global rating agency Fitch Ratings’ statement that India's economic growth is expected to pick up to 5.6 percent in the current fiscal on account of structural reforms being rolled-out by the government. Besides, encouraging quarterly earnings by several blue-chip companies, positive trend at other Asian bourses and overnight gains in the US markets, too supported the sentiments. Meanwhile, Reserve Bank of India (RBI) governor Raghuram Rajan has said that India will focus on sustainable economic growth and developed economies should do the same. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 101.98 crore on November 18, 2014.

On the sectoral front, stocks from FMCG, Capital Goods and Realty counters were supporting the markets’ uptrend, while those from Banking, information technology (IT) and Oil & Gas counters were adding to the underlying cautious undertone. In scrip specific development, shares of Info Edge (India) have rallied after the company has decided to make an additional investment of an amount of about Rs 185 crore in the shares of Zomato Media. Furthermore, Gammon Infrastructure Projects rose after the company reported a consolidated net profit of Rs 20.91 crore in the September quarter as compared to Rs 23.43 crore net loss a year ago.

On global front, Asian equities trading mostly higher, brushing off an inspiring performance on Wall Street overnight, as the health of Japan - the world's third largest economy - worried investors. Back home, Indian rupee opened weak by 10 paise at 61.84 against the previous close of 61.74 per dollar on strong demand for the American currency from oil importers and banks.

The market breadth on BSE was positive, out of 2440 stocks traded, 1389 stocks advanced, while 951 stocks declined on the BSE. 

The BSE Sensex is currently trading at 28175.02 up by 11.73 points or 0.04% after trading in a range of 28294.01 and 28132.22. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.59%, while Small cap index gained 0.70%.

The gaining sectoral indices on the BSE were FMCG up by 1.28%, Capital Goods up by 0.74%, Realty up by 0.69%, Metal up by 0.43% and Infrastructure up by 0.28%, while Bankex down by 0.31%, IT down by 0.24%, Oil & Gas down by 0.21%, PSU down by 0.17% and Power down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.57%, Hindustan Unilever up by 1.88%, Tata Power up by 1.58% and ITC up by 1.44%. On the flip side, Tata Motors down by 1.43%, Coal India down by 1.18%, Cipla down by 1.02%, GAIL India down by 0.94% and Sun Pharma down by 0.81% were the top losers.

Meanwhile, Global ratings agency Fitch Ratings in its latest release has said that India's economic growth is expected to pick up to 5.6 percent in the current fiscal on account of structural reforms being rolled-out by the government.

The agency expects real GDP growth to pick up to 5.6 percent in FY15 and 6.5 percent in FY16 from 4.7 percent in FY14 and has stated that high foreign reserves provide a strong buffer to the Indian economy. Fitch has further stated that the Indian economy had lost much of its dynamism in recent years due to weak investment, however, a gradual pick-up is expected now. In its report it has highlighted that India's current account deficit (CAD) was a concern for investors until mid of 2013, but it has narrowed now due to policy rates hikes and measures including curbs on gold imports through duty hikes.

Though, cautioning  about factors such as pace of fiscal consolidation and structural reforms, investment and inflation environment as well as banking sector's asset quality, it has said that they form downside risks to the economy. India's fiscal deficit touched 82.6 per cent of the Budget estimates for 2014-15 to cross Rs 4.38 lakh crore at the end of September.

Recently, the domestic ratings agency India Ratings, a part of Fitch Ratings had revised down its economic growth estimate for fiscal year 2014-15 marginally to 5.6 per cent citing poor industrial performance, and warned that the government will slip on the fiscal deficit front.

The CNX Nifty is currently trading at 8428.10 up by 2.20 points or 0.03% after trading in a range of 8455.65 and 8412.30. There were 24 stocks advancing against 26 declining on the index.

The top gainers on Nifty were Hindalco up by 2.61%, BPCL up by 2.15%, Zee Entertainment up by 1.98% and Hindustan Unilever up by 1.86%. On the flip side, Tata Motors down by 1.44%, Coal India down by 1.32%, Cairn India down by 1.17%, GAIL India down by 1.08% and Power Grid Corpn. down by 1.01% were the top losers.

Asian markets were trading mostly in the green; Nikkei 225 surged by 0.10%, Straits Times soared 0.58%, Jakarta Composite increased by 0.42%, and Taiwan Weighted was up by 1.03%. On the flip side, Hang Seng dropped 0.42%, KOSPI Index slipped 0.22% and Shanghai Composite was down by 0.21%.