Benchmarks continue to remain in jubilant mood on across the board buying

Local equity markets continued to remain in jubilant mood, trading with gains of around 1.15%, lifting both Sensex and Nifty above psychologically crucial 27,400 and 8,200 levels respectively. Markets continued to build on previous session’s gains witnessed after the U.S. Federal Reserve statement of possibility of raising interest rates in 2015, but at a gradual pace. Meanwhile, broader indices also imitating similar mood, were trading with gains in the range of 1.10%-1.35%.

Sentiments were also buttressed after finance ministry, in mid-year review report tabled in Parliament pointed out the likelihood of India’s economy signing off FY15 with growth of around 5.5%. However, the report quashed growing expectation of RBI slashing interest rates at the start of year as it noted that interest rates were likely to remain unchanged till the end of the March quarter.

On the global front, stocks in Japan led Asia higher for a second day on Friday, as investor confidence continued to be bolstered by expectations the U.S. was in no rush to raise interest rates.  Buying was returning to the region despite a further slide in oil prices overnight. Brent crude held below $60 a barrel near a 5-1/2-year low on Friday as a global oversupply of oil showed little sign of receding, even as companies cut upstream investments next year.

Closer home, with across the board buying taking place, all the sectoral indices on BSE were trading with gains, with an exception of stocks belonging from Realty counter. On the flip side, much of the buying was witnessed by stocks from Metal, Oil & Gas and Power counters. Meanwhile, IT counter also was trading in pink of its health after Tech giant Accenture's higher revenue guidance sent Infosys, Wipro, Tech Mahindra and HCL Tech shares higher. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1499:467; while 26 shares remained unchanged.

The BSE Sensex is currently trading at 27438.78, up by 312.21 points or 1.15% 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 1.12%, while Small cap index up by 1.35%.

The gaining sectoral indices on the BSE were Metal up by 1.95%, Capital Goods up by 1.75%, Oil & Gas up by 1.62%, IT up by 1.57% and Power up by 1.54% while, FMCG down by 0.48% and Realty down by 0.29% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 2.45%, Reliance Industries up by 2.45%, ICICI Bank up by 2.40%, Mahindra & Mahindra up by 2.38% and Hindalco up by 2.34%. On the flip side, Bharti Airtel down by 2.37%, ITC down by 0.99%, Hindustan Unilever down by 0.65%, Bajaj Auto down by 0.24% and GAIL India down by 0.09% 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 8249.55, up by 90.25 points or 1.11% after trading in a range of 8208.60 and 8258.75. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.78%, Mahindra & Mahindra up by 2.52%, Reliance Industries up by 2.47%, Sesa Sterlite up by 2.38% and Zee Entertainment up by 2.38%. On the flip side, DLF down by 3.50%, Bharti Airtel down by 2.48%, ITC down by 1.01%, Kotak Mahindra Bank down by 0.80% and Hindustan Unilever down by 0.78% were the top losers.

Asian markets were trading higher; with FTSE Bursa Malaysia KLCI trading higher by 15.53 points or 0.91% to 1,715.48; KOSPI Index inching up by 32.48 points or 1.71% to 1,929.98; Jakarta Composite rising by 36.57 points or 0.72% to 5,149.92; Straits Times advancing by 40.01 points or 1.23% to 3,283.66; Shanghai Composite gaining 56.06 points or 1.83% to 3,113.58; Taiwan Weighted surging by 120.89 points or 1.36% to 8,999.52; Hang Seng rallying by 320.47 points or 1.4% to 23,152.68 and  Nikkei 225 adding 411.35 points or 2.39% to 17,621.40