Markets continue to trade firm amid gains in capital goods, metal stocks

Indian equity benchmarks continue to trade firm in afternoon session led by gains in capital goods, metal and auto stocks amid firm global cues. The US Fed’s dovish stance on hiking interest rate for short-term spurred the market momentum across the globe and has gripped domestic bourses. Most of the major sectoral indices were trading in green, while a mild weakness in FMCG and realty stocks was visible. Further, the announcement that Prime Minister Narendra Modi has decided to shift the Project Monitoring Group (PMG) from the cabinet secretariat to the Prime Minister's Office also buoyed the sentiments, prompting investors to go for short covering ahead of the expiry next week. Among blue chip stocks, Mahindra & Mahindra was top gainer up by around 2.54%, while Bharti Airtel was top loser trading down by around 2.00%. Buying also continued in broader indices with both mid cap and small cap indices were trading up by over 0.94%.

In scrip specific movement, shares of J K Tyre have soared around 15% to Rs 160, extending its previous day’s rally, after the stock turned ex-stock split. GMM Pfaudler has surged 6% to Rs 273 after its promoters have made an open offer for acquiring 25% stake in the company at Rs 245.85 per share.

On global front, Asian markets were trading in green with Shanghai Composite up by 1.07% and Jakarta Composite up by 0.72%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,200 and 27,000 levels respectively. The market breadth on BSE was positive, out of 2,455 stocks traded, 1,528 stocks advanced, while 837 stocks declined on the BSE.

The BSE Sensex is currently trading at 27417.41, up by 290.84 points or 1.07% after trading in a range of 27292.14 and 27493.07. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.94%, while Small cap index up by 1.27%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.87%, Metal up by 1.79%, Auto up by 1.65%, Power up by 1.45% and IT up by 1.44%. On the other hand, FMCG down by 0.28% and Realty down by 0.20% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.54%, Sesa Sterlite up by 2.26%, Larsen & Toubro up by 2.18%, BHEL up by 2.16% and Reliance Industries up by 2.02%. On the flip side, Bharti Airtel down by 2.00%, ITC down by 0.68%, Hindustan Unilever down by 0.60%, Bajaj Auto down by 0.23% and GAIL India down by 0.12% were the top losers.

Meanwhile, with an aim to revive stalled investments in the economy, Prime Minister Narendra Modi has decided to shift the Project Monitoring Group (PMG) from the cabinet secretariat to the Prime Minister's Office. Narendra Modi has taken the decision with a view to lend more weight to the government's efforts of reviving the investment cycle. The PMO will now directly oversee all the project clearances, which will impart a greater degree of efficiency and also ensure that clearances are fast tracked at every level. Further, the move could help firms planning for coal, power, steel and infrastructure projects to cut through a maze of up to 180 clearances.

The PMG was set up in July 2013 by the previous Prime Minister Manmohan Singh Govt to help facilitate outstanding clearances that were holding up large investments across sectors. Till now, the group has estimated to resolve various hurdles blocking investments of Rs 7 lakh crore out of nearly 500 projects worth Rs 25 lakh crore.During the recent weeks, Prime Minister has been facing criticism over its slow decision process to spur investment and re-energise the economy. Indian Industrial output hit a three-year low at -4.2% in October, led by a de-growth in manufacturing sector. Though, industry is upbeat about the new government installed this May. The cumulative growth for the period April-October 2014-15 over the corresponding period of the previous year stood at 1.9%.

The CNX Nifty is currently trading at 8237.45, up by 78.15 points or 0.96% after trading in a range of 8208.60 and 8258.75. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.87%, Ultratech Cement up by 2.40%, Zee Entertainment up by 2.30%, BHEL up by 2.20% and Sesa Sterlite up by 2.13%. On the flip side, DLF down by 2.61%, Bharti Airtel down by 2.15%, ITC down by 0.83%, Hindustan Unilever down by 0.60% and Kotak Mahindra Bank down by 0.43% were the top losers.

Asian markets were trading in green, FTSE Bursa Malaysia KLCI up by 15.53 points or 0.91% to 1,715.48, KOSPI Index up by 32.48 points or 1.71% to 1,929.98, Shanghai Composite up by 32.63 points or 1.07% to 3,090.15, Jakarta Composite up by 36.57 points or 0.72% to 5,149.92, Straits Times up by 38.24 points or 1.18% to 3,281.89, Taiwan Weighted up by 120.89 points or 1.36% to 8,999.52, Hang Seng up by 309.35 points or 1.35% to 23,141.56, Nikkei 225 up by 389.8 points or 2.26% to 17,599.85