Benchmarks enter into positive territory amid gains in realty, FMCG stocks

Indian equity benchmarks pared all early losses and entered into the positive territory hovering near intra-day high level as sharp buying appeared in realty, FMCG and power stocks. Most of major sectoral indices were trading in green, while some mild weakness appeared in defensive stocks such as healthcare, IT and TECK. Sentiments got some support as Minister of State for Finance Jayant Sinha underscored that India had the potential to become a $5 trillion economy in the next 10 years, if it grows at an average 7-8%. Further, positive start of the European markets also provided support to the domestic benchmarks. Buying was broad based with both mid cap and small cap indices trading up by over 0.80%. Among blue chip stocks, GAIL and BHEL were top gainers on BSE trading up by over 2.8%.

Stock specific movement, shares of V-Guard Industries has gained 5% to Rs 1,128. Since November 4, the stock rallied 25% from Rs 902 after the company reported a healthy net profit growth of 32% year-on-year in September 2014 quarter, backed by 29% revenue growth. Shares of JBF Industries has surged 16% to Rs 199, also its 52-week high on domestic bourses on back of heavy volumes. Furthermore, Reliance Capital has moved higher by 5% to Rs 504 after Nippon Life Insurance agreed to increase its stake in Reliance Capital Asset Management (RCAM) from 26% to 49%.

On global front, most of the Asian markets were trading in green with Shanghai Composite up by 1.43% and Hang Seng up by 1.12%. European markets also made positive opening.  Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,400 and 28,000 levels respectively. The market breadth on BSE was negative, out of 2,902 stocks traded, 1,684 stocks advanced, while 1,115 stocks declined on the BSE.

The BSE Sensex is currently trading at 28435.17, up by 97.12 points or 0.34% after trading in a range of 28261.31 and 28470.15. 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 0.82%, while Small cap index up by 1.20%.

The gaining sectoral indices on the BSE were Realty up by 2.62%, FMCG up by 1.39%, Power up by 1.33%, Metal up by 0.81%, PSU up by 0.78% while, TECK down by 0.43% and IT down by 0.32% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 3.02%, BHEL up by 2.81%, ITC up by 2.35%, Sesa Sterlite up by 1.72% and Hero MotoCorp up by 1.41%. On the flip side, Bharti Airtel down by 1.79%, Bajaj Auto down by 1.29%, Wipro down by 0.92%, ICICI Bank down by 0.46% and Reliance Industries down by 0.40% were the top losers.

Meanwhile, exhibiting some confidence in the economy, Minister of State for Finance Jayant Sinha underscored that India had the potential to become a $5 trillion economy in the next 10 years, if it grows at an average 7-8%.

He further highlighted that target of gross domestic product (GDP) reaching at least $5 trillion at the end of 10 years was possible given the strong capital inflows and expected appreciation of Indian currency. A GDP of $5 trillion would also mean that India had the potential to add another $3 trillion in market capitalisation in its stock exchanges in the next decade.

Presently, India economy accounts for $2 trillion and has grown at 6-7% CAGR in the last 10 years. He emphasized that the country needs to sustain a growth rate of 7-8% to have at least a chance of offering jobs to 10 million young people.

Further, the minister also pointed that economy has genuinely lacked in terms of job creation. While, the organized sector barely creates 2-3 million jobs a year, there are around 100 million unemployed people out there. Nevertheless, he pointed that such extra-ordinary growth could only be achieved through economic growth.
The CNX Nifty is currently trading at 8492.90, up by 29.80 points or 0.35% after trading in a range of 8438.65 and 8500.30. There were 34 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were DLF up by 3.49%, GAIL India up by 3.00%, ITC up by 2.60%, ACC up by 2.48% and Asian Paints up by 2.40%. On the flip side, Zee Entertainment down by 4.80%, Bharti Airtel down by 1.80%, HCL Tech down by 1.58%, Jindal Steel & Power down by 1.43% and Bajaj Auto down by 1.36% were the top losers.

Most of the Asian markets were trading in green, KOSPI Index up by 0.63 points or 0.03% to 1,980.84, FTSE Bursa Malaysia KLCI up by 2.64 points or 0.14% to 1,841.20, Taiwan Weighted up by 6.15 points or 0.07% to 9,122.39, Jakarta Composite up by 7.99 points or 0.16% to 5,126.93, Shanghai Composite up by 36.75 points or 1.43% to 2,604.35, Hang Seng up by 268.07 points or 1.12% to 24,111.98, Nikkei 225 down 24.04 points or 0.14% to 17,383.58, Straits Times down 1.48 points or 0.04% to 3,343.51

European Markets made positive opening. France’s CAC up by 11.04 points or 0.25% to 4,393.35, UK’s FTSE 100 up by 24.74 points or 0.37% to 6,755.88 and Germany’s DAX up by 66.37 points or 0.67% to 9,927.58.