Benchmarks trade jubilantly in early deals

Indian equity benchmarks have made a gap-up opening and are trading jubilantly in early deals on Monday with frontline gauges recapturing their crucial 8,250 (Nifty) and 27,400 (Sensex) levels. Sentiments remained up-beat from the report that overseas investors poured in $2 billion in the Indian capital markets this month so far, taking total inflows to $42 billion since January this year. Some support also came in from reports that the Narendra Modi government is set to unleash several big-ticket announcements over the next few weeks, starting with changes in the land acquisition law through an ordinance.

On the global front, the US markets made a flat closing with a positive bias in the last session with both the Dow and S&P 500 closing at records, though the trading volume remained low due to holiday. The Asian markets were trading mostly in the green. Hong Kong market has surged over two percent in early deals as China’s central bank will widen the definition of deposits that lenders can use to meet financial ratios, giving them room to make more loans.

Back home, there was broad based buying in the markets and apart from the blue chips, the broader markets too equally participating in the rally. On the sectoral front, metal, realty, auto, infra, power and capital goods witnessed the maximum gain in trade, while there were no losers on the BSE sectoral space. The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1413 shares on the gaining side against 442 shares on the losing side while 58 shares remain unchanged.

The BSE Sensex is currently trading at 27447.64, up by 205.86 points or 0.76% after trading in a range of 27266.49 and 27507.25. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.97%, while Small cap index up by 0.85%.

The gaining sectoral indices on the BSE were Metal up by 2.12%, Realty up by 1.85%, Auto up by 1.26%, Infrastructure up by 1.18% and Power up by 1.12%, while there were no losers on the index.

The top gainers on the Sensex were Sesa Sterlite up by 3.66%, Hindalco up by 2.10%, Tata Motors up by 1.98%, Tata Steel up by 1.81% and ONGC up by 1.47% while, there were no losers on the Sensex.

Meanwhile, with an aim to boost the domestic economic growth, the government has approved key insurance, coal and pharma sector reforms which were stuck in Parliament logjam.  A Union Cabinet committee, headed by Prime Minister Narendra Modi, approved promulgation of the ordinance on Insurance Bill, re-promulgation of the Coal ordinance and allowing 100 per cent FDI in medical devices sector under the automatic route.

The government is of the view that hiking of the foreign investment cap in the insurance sector to 49 per cent will result in capital inflow of $6-8 billion. While, the Coal Mines (Special Provisions) Bill, 2014 will facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. The government has decided to auction or allot 101 cancelled coal blocks in the first round of auction. Out of which 65 mines will be allocated to private players while 36 other blocks will be directly allotted to state-owned companies.  Both bills were approved by the Lok Sabha during the session and also got approval from the Standing Committee, as well as the Select Committee of the Rajya Sabha. However, the bills were not permitted to be taken up for discussions in the Rajya Sabha because of disturbances in the upper House.

To encourage manufacturing of equipments, including diagnostic kits and other devices, the government also allowed 100 percent FDI under automatic route in medical devices sector. The move will encourage FDI inflows in the sector and help domestic companies to enhance their global competitiveness.  As per estimates, India imports about 70 percent of its requirement of medical devices. Present industry size stands at around $7 billion in the country.

The CNX Nifty is currently trading at 8264.20, up by 63.50 points or 0.77% after trading in a range of 8214.70 and 8279.15. All the 50 stocks were advancing on the index.

The top gainers on Nifty were Sesa Sterlite up by 3.66% and Jindal Steel & Power up by 3.11% and Hindalco up by 2.27% and DLF up by 2.24% and Tata Motors up by 2.03% while, there were no losers on the Nifty.

The Asian markets were trading mostly in the green; FTSE Bursa Malaysia KLCI rose 0.84 points or 0.05% to 1,765.28, Straits Times increased 8.28 points or 0.25% to 3,361.96, Jakarta Composite added 9.06 points or 0.18% to 5,176.05, Shanghai Composite surged 28.35 points or 0.9% to 3,185.95, Taiwan Weighted strengthened 74.88 points or 0.81% to 9,293.38 and Hang Seng was up by 440.86 points or 1.89% to 23,790.20. On the flip side, Nikkei 225 decreased 81.81 points or 0.46% to 17,737.15 and KOSPI Index was down by 18.18 points or 0.93% to 1,929.98.