Markets continue to trade firm amid buying in metal, realty stocks

Indian equity benchmarks continue to trade firm in the afternoon session, though the major indices were following a tight range but there was no instance of profit booking since morning. Good global cues coupled with some positive economic related announcement at the domestic front has enthused the markets to extend their gains. All the sectoral indices on the BSE were trading in green with metal and realty being the top two gaining indices. Metal stocks were on buyer radar amid reports that the government may soon take the ordinance route to pave the way for auction of iron ore and other minerals. Furthermore, the continued capital inflows by FIIs and Finance Minister Arun Jaitley announcement that the economy is expected to grow ‘much better’ in 2015-16 also added to the optimistic sentiments. Apart from blue chips, broader indices too equally participated in the rally with both mid cap and small cap indices trading up by over 0.85%.

Shares of Aban Offshore has surged nearly 13% to Rs 470  on back of heavy volumes on after the rating agency Credit Analysis & Research (CARE) upgraded the credit rating of the oil exploration and production company. RPP Infra Projects was trading higher by 3% at Rs 129 after the company said it has bagged new order worth Rs 48.37 crore from TamilnaduWater Supply and Drainage Board. 

On global front, most of the Asian markets were trading in green with Jakarta Composite up by 0.11% and Straits Times up by 0.27%. 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 2,475 stocks traded, 1,606 stocks advanced, while 779 stocks declined on the BSE.

The BSE Sensex is currently trading at 27432.70, up by 190.92 points or 0.70% after trading in a range of 27266.49 and 27507.25. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.01%, while Small cap index up by 0.89%.

The gaining sectoral indices on the BSE were Metal up by 2.67%, Realty up by 1.86%, Auto up by 1.38%, Power up by 1.21% and INFRA up by 1.12%. There were no losing index on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 4.17%, Hindalco up by 2.76%, Tata Steel up by 2.73%, Tata Motors up by 2.07% and ONGC up by 1.85%. On the flip side, Axis Bank down by 0.26% was the only loser.

The CNX Nifty is currently trading at 8257.95, up by 57.25 points or 0.70% after trading in a range of 8214.70 and 8279.15. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 4.10%, Jindal Steel & Power up by 3.15%, Hindalco up by 2.96%, Tata Steel up by 2.80% and Tata Motors up by 2.17%. On the flip side, Kotak Mahindra Bank down by 0.55%, PNB down by 0.20% and Axis Bank down by 0.15% were the top losers.

Meanwhile, with an aim to fast track the reforms process, the government, after approving key reforms for coal and insurance sectors recently through ordinance route, may soon take the same route to pave the way for auction of iron ore and other minerals as the proposed amendments to the MMRDA Act have been pending since long.

As mining sector is one of the chosen segments for the ‘Make in India’ programme,  the government has planned to circulate the new bill seeking promulgation of ordinance for bringing changes in Mines and Minerals (Development and Regulation) Act, 1957. A large number of mines have remained shut and the Mines Ministry is of the view that due to absence of a set of guidelines, the government is unable to take decisions. Meanwhile, the ordinance will pave the way for decision-making.

Mines Ministry has prepared a draft amendment Bill and is now considering moving a proposal to the Cabinet to adopt the ordinance route as the Winter Session of Parliament is over. The Bill sought to introduce competitive bidding through the auction route for iron ore and other minerals and also focuses on attracting private investment and latest technology and eliminating delay in administration. Meanwhile, the provisions for the auction route for the allocation of mines and creation of District Mineral Fund for the welfare of the project-affected people would remain. The Ordinance would also provide for greater decentralization of power to states for allocation of resources. 

The CNX Nifty is currently trading at 8257.95, up by 57.25 points or 0.70% after trading in a range of 8214.70 and 8279.15. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 4.10% and Jindal Steel & Power up by 3.15% and Hindalco up by 2.96% and Tata Steel up by 2.80% and Tata Motors up by 2.17%. On the flip side, Kotak Mahindra Bank down by 0.55%, PNB down by 0.20% and Axis Bank down by 0.15% were the top losers.

Most of the Asian markets were trading in green, FTSE Bursa Malaysia KLCI up by1.59 points or 0.09% to 1,766.03, Jakarta Composite up by 5.65 points or 0.11% to 5,172.63, Straits Times up by 8.92 points or 0.27% to 3,362.60, Shanghai Composite up by47.37 points or 1.5% to 3,204.97, Taiwan Weighted up by 67.78 points or 0.74% to 9,286.28 and Hang Seng up by 430.07 points or 1.84% to 23,779.41. On the flip side, Nikkei 225 down 47.39 points or 0.27% to 17,771.57 and KOSPI Index down 20.3 points or 1.04% to 1,927.86