Markets trade steady; metals continue to lead

Indian markets despite showing some choppiness are maintaining their jubilant run with gain of over a quarter percent in the noon trade. The market mood was on high since beginning after China went for a surprise rate cut, the first in more than two years, reflecting a change of course by Beijing and the central bank, from a previously persisting modest stimulus policy. The rate cut in China has spurred hopes that other regions like EU might too reduce some rates which might lead to fund flows into equities. Traders have even overlooked the quarterly survey by industry body Ficci, which has suggested moderation in manufacturing growth in the October-to-December quarter as compared to the July-to-September period of 2014-15. Most of the sectoral indices on the BSE are showing uptrend, while the Metals has taken the lead, the IT sector too was trading higher despite the strength in rupee after US President Barak Obama’s immigration actions. However, the gains in metals and information technology shares are being capped by losses in select index heavyweights like Reliance and ITC, Tata Steel.

The BSE Sensex is currently trading at 28441.48, up by 106.85 points or 0.38% after trading in a range of 28394.48 and 28514.98. 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 0.37%, while Small cap index gained 0.20%.

The top gaining sectoral indices on the BSE were Metal up by 2.37%, IT up by 1.50%, TECK up by 1.22%, Realty up by 1.20%, Consumer Durables up by 0.90%, while Oil & Gas down by 0.73%, FMCG down by 0.34%, Auto down by 0.14% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 4.65%, Tata Power up by 3.12%, Tata Steel up by 2.98%, Infosys up by 2.54% and BHEL up by 2.08%. On the flip side, Reliance Industries down by 1.42%, ONGC down by 0.94%, Mahindra & Mahindra down by 0.87%, HDFC down by 0.74% and Tata Motors down by 0.54% were the top losers.

Meanwhile, reviewing the performance of the new government during the first six month of its functioning, India Inc has stated that the new dispensation has initiated fundamental reforms that have set the stage for revival of economic growth.

FICCI President Sidharth Birla has stated that measures taken by new government to improve ease of doing business and attract investments in manufacturing and infrastructure will facilitate revival of capex cycle, accelerate economic activity, create large-scale employment and thus drive overall growth. Further, he added that real impact of these reform measures on the economy should be visible in the next 12-18 months.

PHD Chamber President Sharad Jaipuria asserted that the government has actively taken up the agenda of rejuvenation of India’s growth story by focusing on economic growth, taming price pressures, facilitating industrial and business environment and simplifying the policies and procedures. Government's vision to reduce administrative bottlenecks and provide conductive environment to the businesses will provide impetus to domestic economic growth in coming future. CII Director-General Chandrajit Banerjee has asserted that recent government decisions like increasing railway fares, raising FDI limits in defence, real estate and insurance, attracting FDI in railways and reform fuel price regime have all renewed the investors’ confidence. 

According to the industry, early roll-out of reforms like the Goods & Services Tax (GST), changes in the Land Acquisition Act, passage of the Insurance Bill, boosting infrastructure, and augmenting the manufacturing base will be instrumental in refueling growth. On fiscal deficit front, the Industry is of the view that expediting disinvestments to shore up revenues and rationalising subsidies will be key to restrict the fiscal deficit within the budget target of 4.1% of GDP.

The CNX Nifty is currently trading at 8510.95, up by 33.60 points or 0.40% after trading in a range of 8490.80 and 8529.00. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 4.86%, Hindalco up by 4.52%, DLF up by 3.53%, Tata Steel up by 3.05% and Zee Entertainment was up by 2.85%. On the flip side, Power Grid down by 2.22%, Kotak Mahindra Bank down by 1.39%, Reliance Industries down by 1.33%, Mahindra & Mahindra down by 1.05% and ACC down by 0.99% were the top losers.

All the major Asian markets except Straits Times, which was down modestly by 4.34 points or 0.13% to 3,340.98, were trading in green.

KOSPI Index gained 13.7 points or 0.7% to 1,978.54, FTSE Bursa Malaysia KLCI added 19.54 points or 1.08% to 1,828.67, Jakarta Composite was up by 25.43 points or 0.5% to 5,137.47, Taiwan Weighted moved higher by 30.8 points or 0.34% to 9,122.33, Shanghai Composite gained 44.53 points or 1.79% to 2,531.32, Nikkei 225 added 56.65 points or 0.33% to 17,357.51 and Hang Seng surged by 453.22 points or 1.93% to 23,890.34.