Markets continue to hold in positive territory; Nifty trades above 8200 level

Local equity markets continued to trade steady with slender gains of around one tenth of a percent, which kept Sensex and Nifty above psychologically crucial 27,350 and 8,200 levels respectively. Nevertheless, broader indices outperforming larger counterparts were trading higher with gains of around 0.25%-0.40%.The gains of local equity markets were led by defensive shares which were benefiting on concerns of FIIs’ continuing their selling spree till year end. Foreign investors sold nearly $1 billion worth of shares over nine consecutive sessions of selling, amid a brewing financial crisis in Russia and a crude oil slump.

Nevertheless, further gain of bourses remain limited as investors prefer being on the sidelines in the F&O expiry week, watching the progress on key reforms such as the opening up of insurance and coal sectors and tabling of a bill on nationwide sales tax in parliament's winter session that ends Tuesday.

On the global front, Asian shares took their cues from Wall Street and kicked off a holiday-shortened week on a strong footing on Monday. However, activity remained thin this week, with many investors away for Christmas and run-up to New Year holidays.

Closer home, most of the sectoral indices on BSE were holding into positive territory, however stocks from Information Technology, Technology and Capital Goods counters were the losers of the session. Meanwhile, much of the gains were witnessed by stocks from Power, Realty and FMCG counters. The overall market breadth on BSE was in the favour of declines which outnumbered advances in the ratio of 1281:1258; while 114 shares remained unchanged. 

The BSE Sensex is currently trading at 27398.19, up by 26.35 points or 0.10% after trading in a range of 27382.32 and 27509.59. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.26%.

The gaining sectoral indices on the BSE were Power up by 1.18%, Realty up by 0.95%, FMCG up by 0.90%, PSU up by 0.88% and Auto up by 0.55% while, IT down by 0.78%, TECK down by 0.57%, Capital Goods down by 0.29% and Bankex down by 0.11% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 3.20%, BHEL up by 2.63%, NTPC up by 2.51%, Coal India up by 2.38% and Mahindra & Mahindra up by 1.53%. On the flip side, Hindalco down by 1.65%, Tata Steel down by 1.18%, Larsen & Toubro down by 1.13%, Infosys down by 1.02% and ICICI Bank down by 0.89% were the top losers.

Meanwhile, with government’s ‘Mid-year Economic Review’ report pegging India’s growth rate of 5.5% in ongoing fiscal, Union Finance Minister, Arun jaitley underscored that India could well achieve 6% growth next fiscal and required shared vision to achieve 9-10% economic growth.

He further underscored that his government was completely committed to the insurance reform and would not allow opposition from obstructing this. The minister is all set to present Insurance Amendment Bill for consideration and approval in Rajya Sabha.

Meanwhile, Finance minister introduced the long-pending GST Bill in the Lok Sabha to roll out the new regime from April 2016, which would subsume various levies like entry tax and Octroi.

Touted as the single biggest indirect taxation reform since independence and a 'win-win' for Centre and states, the 122nd Constitution Amendment Bill for Goods and Services Tax (GST) was tabled by Finance Minister Arun Jaitley after extensive discussions to get states on board by addressing their concerns.

The CNX Nifty is currently trading at 8233.25, up by 8.05 points or 0.10% after trading in a range of 8228.20 and 8260.85. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 4.53%, GAIL India up by 3.19%, NMDC up by 3.06%, BHEL up by 2.68% and Coal India up by 2.53%. On the flip side, Hindalco down by 1.71%, HCL Tech. down by 1.47%, Larsen & Toubro down by 1.28%, Tata Steel down by 1.27% and Tech Mahindra down by 1.14% were the top losers.

Asian markets were trading mostly higher; with KOSPI Index trading higher by 13.14 points or 0.68% to 1,943.12; Nikkei 225 advancing by 13.74 points or 0.08% to 17,635.14; FTSE Bursa Malaysia KLCIrallying by 25.15 points or 1.47% to 1,741.14; Straits Times spurting by 36.06 points or 1.1% to 3,315.59; Taiwan Weighted adding 95.48 points or 1.06% to 9,095.00; Hang Seng firming up by 294.01 points or 1.27% to 23,410.64. On the flip side, Shanghai Composite was trading lower by 5.28 points or 0.17% to 3,103.32 and Jakarta Composite was edging lower by 0.99 points or 0.02% to 5,143.63.