Benchmarks extend gains; Nifty surpasses 8250 mark

Indian equity markets added gains and continued to trade firm in the late afternoon session on account of buying in frontline blue chip counters taking cues from regional counterparts. The sentiments were on optimistic note after 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. Traders were seen piling positions in Consumer Durables, Power and FMCG stocks while selling was witnessed in IT and TECK sector stocks. In scrip specific development, Videocon Industries was trading firm after the company decided to raise $45.21 million through the issue of Global Depository Receipts (GDRs). R Systems International was trading firm after the board of directors of the company approved buyback of shares and interim dividend. Electrosteel Castings was trading in red amid fresh concerns regarding alleged irregularities in the allocation of coal blocks.

The markets may remain volatile in the near term as traders may roll over positions in the Futures & Options (F&O) segment from near month i.e. December 2014 series to next month i.e. January 2015 series. The near month December 2014 derivatives contracts will expire on Wednesday i.e. December 24, 20014. The stock market will remain close on Thursday i.e. December 25, 2014, on account of Christmas holiday.

On the global front, the Asian markets were trading in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,250 and 27,400 levels respectively. The market breadth on BSE was positive in the ratio of 1383:1324 while 134 scrips remained unchanged.

The BSE Sensex is currently trading at 27490.37, up by 118.53 points or 0.43% after trading in a range of 27382.32 and 27509.59. There were 21 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.71%, while Small cap index up by 0.37%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.40%, Power up by 1.35%, FMCG up by 1.35%, PSU up by 1.28%, Realty up by 1.24% while, IT down by 0.64%, TECK down by 0.45% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 3.03%, NTPC up by 2.95%, GAIL India up by 2.53%, BHEL up by 2.38% and Mahindra & Mahindra up by 2.11%. On the flip side, Hindalco down by 1.27%, TCS down by 1.01%, Infosys down by 0.74%, Tata Steel down by 0.69% and Larsen & Toubro down by 0.49% were the top losers.

Meanwhile, suggesting ways for domestic manufactures to boost exports, Commerce Ministry has stated that Indian industry must enhance competitiveness and align themselves with the modern elements of international trade by promoting and integrating with the global value chains. Commerce Secretary Rajeev Kher has asserted that the manufacturing companies should focus on developing new technology, making new strategy for product development and enhance production efficiency to make their product globally competitive instead of demanding more relaxation from the government to protect their products in global markets.

On the tax issue for Special Economic Zones (SEZs), Rajeev Kher has said that the issue of removal or lowering of minimum alternate tax (MAT) and dividend distribution tax (DDT) imposed on SEZs could be addressed in next year’s Budget. A MAT of 18.5 per cent and a DDT of 15 per cent was imposed on SEZs a few years ago despite the policy promising a tax-free regime for a fixed number of years. Meanwhile, he stressed that SEZs will soon be allowed to use infrastructure created within the non-processing areas of the zones for general use ensuring optimum utilisation.

During April-November FY15, the value of India’s overseas shipments increased by 5.02% to $215.76 billion from $205.44 billion in the same period of previous financial year. Amid raising concerns over the delay in announcement of the FTP, Commerce Ministry recently highlighted that a new foreign trade policy (FTP) is under consultation and finalization. FTP, which governs all exports and imports related activities in India, ended on March 31 and the new government will introduce new FTP for the period 2014-19. However, eight months of the current fiscal are already over.

The CNX Nifty is currently trading at 8259.40, up by 34.20 points or 0.42% after trading in a range of 8228.20 and 8263.90. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 5.99%, NMDC up by 3.55%, Coal India up by 3.18%, NTPC up by 2.95% and Cairn India up by 2.93%. On the flip side, Hindalco down by 1.39%, HCL Tech down by 1.08%, TCS down by 1.07%, Tech Mahindra down by 0.96% and Zee Entertainment down by 0.94% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 13.14 points or 0.68% to 1,943.12, Nikkei 225 increased 13.74 points or 0.08% to 17,635.14, Shanghai Composite increased 18.85 points or 0.61% to 3,127.45, FTSE Bursa Malaysia KLCI increased 26.36 points or 1.54% to 1,742.35, Straits Times increased 46.07 points or 1.4% to 3,325.60, Taiwan Weighted increased 95.48 points or 1.06% to 9,095.00, Hang Seng increased 291.94 points or 1.26% to 23,408.57, while Jakarta Composite decreased 4.63 points or 0.09% to 5,139.99.

The European markets were trading in green; France’s CAC increased 45.91 points or 1.08% to 4,287.56, Germany’s DAX increased 71.72 points or 0.73% to 9,858.68 and UK’s FTSE 100 increased 57.16 points or 0.87% to 6,602.43.