Markets trade at record highs on sustained buying activities

Local equity markets, going from strength to strength were trading near record high levels on sustained buying activities by funds and retail investors amidst positive regional counterparts. Notably, the gains of bourses came well ahead of the release of Q2 GDP data due which is estimated to have grown at 5% or even lower in the second quarter of 2014-15, sharply lower than the 5.7% witnessed in the first quarter. Sentiment was buttressed after RBI issued guidelines for payments and small banks, while OPEC’s decision of not slashing output despite sliding oil prices also sent the markets on a new high. At day’s high, while Sensex was trading above psychologically crucial 28,750, Nifty was trading just shy off the crucial 8,600 level, with gains of around a percent. Meanwhile, broader indices also participating into the rally were trading up with gains of around a percent.

On the global front, Asian markets were holding mostly in green on Friday despite weak economic data and on the data front, Japanese October consumer price inflation slowed to its lowest level in a year and South Korean industrial output unexpectedly declined in October. The absence of a U.S. lead damped sentiment to some extent. Wall Street was closed for the Thanksgiving holiday on Thursday and will reopen on Friday for a shortened session.

Closer home, all the sectoral indices on BSE were trading into positive territory, nevertheless stocks from banking, PSU and Consumer Durable counters were the top gainers of the session. Banking stocks all rallied on rate cut hopes. Besides, shares in SpiceJet and Jet Airways surged 6 percent and 12 percent.  The overall market breadth on BSE concluded in the favour of 1522:471; while 18 shares remained unchanged.

The BSE Sensex is currently trading at 28754.29, up by 315.38 points or 1.11% after trading in a range of 28483.99 and 28822.37. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.13%, while Small cap index up by 0.82%.

The gaining sectoral indices on the BSE were Bankex up by 3.02%, PSU up by 2.04%, Consumer Durables up by 1.67%, Auto up by 1.59%, Oil & Gas up by 1.32% while, IT down by 0.03%, TECK down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 4.64%, Axis Bank up by 2.99%, ICICI Bank up by 2.77%, Tata Motors up by 2.30% and Larsen & Toubro up by 1.88%. On the flip side, Sesa Sterlite down by 1.32%, Bajaj Auto down by 0.48%, TCS down by 0.27%, Bharti Airtel down by 0.22% and BHEL down by 0.16% were the top losers.

Meanwhile, with an aim to boost India’s MSME sector, Finance Ministry has set up a committee to examine financial architecture for the micro, small and medium enterprises (MSME) sector. The committee consists of 15 members including joint secretary of Institutional Finance and is headed by ICICI Bank Chairman K V Kamath.

The MSME sector accounts for around 45 per cent of the manufacturing output and 40 per cent in the country's total exports. The MSME sector also contributes 8 per cent to India's Gross Domestic Product (GDP) and provides jobs to 60 million people in different segments such as readymade garments, leather, gems and jewellery, light engineering and handicrafts.

In other development, the government has also proposed amendments to the MSME Act to enable time-bound exit and revival of loss-making units to help them consolidate their businesses and re-deploy capital in other greenfield ventures.  The government has sought comments from the states and UTs on proposed amendments to the MSME Act with a view to formulate a suitable policy for the sector. Revival clause of proposed act seeks early assistance to tide over difficult financial times and provide a framework where a viable MSME can seek standard as well as customised relief and concession to revive. On the other hand, time-bound exit clause to provide an easier and expeditious exit procedure for the benefit of promoters and guarantors through liquidation and change in management.

The CNX Nifty is currently trading at 8596.15, up by 101.95 points or 1.20% after trading in a range of 8516.25 and 8617.00. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 6.98%, PNB up by 6.08%, Indusind Bank up by 4.77%, SBI up by 4.59% and Asian Paints up by 4.51%. On the flip side, Cairn India down by 4.20%, Sesa Sterlite down by 1.38%, DLF down by 0.94%, HCL Tech. down by 0.62% and Bajaj Auto down by 0.59% were the top losers.

Asian markets were trading mostly higher; with Straits Times gaining by 16.6 points or 0.5% to 3,357.56; Taiwan Weighted advancing by 21.84 points or 0.24% to 9,187.15; Hang Seng rising by 33.91 points or 0.14% to 24,038.19; Shanghai Composite gaining by 48.58 points or 1.85% to 2,679.06; Nikkei 225 firming up by 211.35 points or 1.23% to 17,459.85.

On the flip side, Jakarta Composite down by 17.39 points or 0.34% to 5,127.93; FTSE Bursa Malaysia KLCI slid by 8.04 points or 0.44% to 1,821.87 and  KOSPI Index shed by 1.31 points or 0.07% to 1,980.78.