Benchmarks continue to trade in green in late morning session

After getting a flat start, benchmark equity indices are trading in fine fettle in late morning deals on continued buying activities by both funds and retail investors. Sentiment on the street improved as United Nations, in its latest report ‘the UN World Economic Situation and Prospects 2015 (WESP)’ stated that India’s GDP growth is likely to improve to 5.9% next year and 6.3% in 2016 from projected 5.4% economic growth during 2014. Besides, a firming trend in other Asian markets following overnight gains at the US markets also influenced trading sentiments. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 808 crore and also sold derivatives worth Rs 1,335 crore on December 12, 2014. Meanwhile, some traders remained on the sidelines and refrained from major buying activity ahead of IIP and retail inflation data due to be announced later in the day.

On global front, Asian markets mostly rose as investor sentiment was lifted by strong retail sales in the world's largest economy. But the price of oil extended its fall below $60 per barrel, keeping buying appetite in check. Back home, continuing its fall for the fifth straight day, Indian rupee lost another 12 paise to trade at a fresh 10-month low of 62.45 against the US dollar in early trade, due to sustained demand for the American unit from importers.

On the sectoral front, stocks from Banking, Infrastructure and information technology (IT) counters were supporting the markets’ uptrend, while those from Oil & Gas, Realty and PSU counters were adding to the underlying cautious undertone. In scrip specific development, shares of Pricol have rallied after the company announced the acquisition of auto component manufacturing Company in Brazil, through its wholly owned subsidiary company. Furthermore, OnMobile Global is locked in upper circuit of 5% on BSE after the company’s board approved the buyback of equity shares of the company at a price not exceeding Rs 86 per share.

The market breadth on BSE was positive, out of 2259 stocks traded, 1410 stocks advanced, while 750 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27667.72 up by 65.71 points or 0.24% after trading in a range of 27692.32 and 27598.96. 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 0.61%, while Small cap index gained 0.70%.

The gaining sectoral indices on the BSE were Bankex up by 0.43%, Infrastructure up by 0.42%, IT up by 0.40%, FMCG up by 0.40% and TECK up by 0.34% while, Oil & Gas down by 0.62%, Realty down by 0.32%, PSU down by 0.07% and Power down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.05%, Sun Pharma Inds. up by 1.85%, Tata Power up by 1.24%, Hero MotoCorp up by 1.15% and Infosys up by 1.11%. On the flip side, GAIL India down by 3.62%, Mahindra & Mahindra down by 1.79%, ONGC down by 1.62%, Sesa Sterlite down by 1.58% and Dr. Reddys Lab down by 0.63% were the top losers.

Meanwhile, United Nations, in its latest report ‘the UN World Economic Situation and Prospects 2015 (WESP)’ has stated that India’s GDP growth is likely to improve to 5.9% next year and 6.3% in 2016 from projected 5.4% economic growth during 2014. The report expects that the country will likely make progress through implementing economic policy reforms and providing support to business and consumer confidence.

During the past two fiscal, Indian economy had been struggling with slowdown and its growth slipped below 5%.  The factors like high interest rate and stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economy growth.  However, the domestic economy has shown signs of nascent recovery and expanded at 5.5% during first half of this fiscal, as compared to 4.9% in the same period of previous fiscal. 

On global level, the UN report stated that apart from India, the baseline forecast projects a moderate growth recovery in 2015 and 2016 for almost all emerging economies, including Brazil, Indonesia, Mexico, Russia, South Africa and Turkey. Developing countries as a group are expected to grow at 4.8 % in 2015 and 5.1% in 2016, up from the 4.3% estimated for 2014. Economic growth in South Asia region is also set to pick up from an estimated 4.9% in 2014 to 5.4% in 2015 and 5.7% in 2016. Although the recovery will be led by India, which accounts for about 70% of regional output, other countries such as Bangladesh and Iran are also projected to witness stronger growth in the forecast period.

The CNX Nifty is currently trading at 8313.35 up by 20.45 points or 0.25% after trading in a range of 8321.90 and 8295.05. There were 33 stocks advancing against 17 declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.11%, Sun Pharma up by 1.87%, Asian Paints up by 1.75%, Lupin up by 1.49% and NMDC up by 1.42%. On the flip side, GAIL India down by 3.61%, Cairn India down by 2.75%, Zee Entertainment down by 1.77%, Mahindra & Mahindra down by 1.75% and ONGC down by 1.70% were the top losers.

The Asian markets were trading mostly in green, Jakarta Composite was up by 0.07%, KOSPI Index gained 0.44%, Straits Times was higher by 0.40%, Hang Seng gained 0.13%, Taiwan Weighted increased by 0.20% and Nikkei 225 surged by 1.03%. On the other hand, FTSE Bursa Malaysia KLCI declined by 0.34% and Shanghai Composite was tad lower by 0.3%.