Markets trade at day’s high on frenzied buying activities

Local equity markets going from strength to strength were trading at day’s high point in afternoon deals on Monday as buoyant global markets lifted blue chips, quelling some of the concerns about a recent selling streak by foreign investors. At day’s high, both Sensex and Nifty were trading above psychologically crucial 27,450 and 8,200 levels respectively, with gains of around a percent. Meanwhile, broader indices equally participating into the rally, were up with gains of around a percent. However, trading volume remained low as investors stayed on the sidelines given that most global markets will have a shorter trading week

On the global front, Asian markets mostly rose on Monday on the first full day of trade after Christmas break, with confidence boosted by Chinese easing measures and another Wall Street record. Adding to buying confidence is news that China's State Council late Wednesday announced preferential policies for manufacturers, including a promise to extend financial support, especially to large-scale equipment makers, to expand their exports.

Closer home, most of the sectoral indices on BSE were trading into positive territory, stocks from Metal, Realty and Auto counters were the outperformers of the session. Metal and mining stocks were in demand on reports of China's central bank adjusting deposits calculation rules. China is the world's largest consumer of steel, copper and aluminum. The overall maret breadth on BSE was in the favour of advances which thumped declines in the ratio of 1731:299; while 23 shares remained unchanged.

The BSE Sensex is currently trading at 27484.46, up by 242.68 points or 0.89% 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 1.05%, while Small cap index up by 0.84%.

The gaining sectoral indices on the BSE were Metal up by 3.04%, Realty up by 2.12%, Auto up by 1.56%, Power up by 1.48% and INFRA up by 1.29%

The top gainers on the Sensex were Sesa Sterlite up by 4.48%, Hindalco up by 3.32%, Tata Steel up by 2.91%, Tata Motors up by 2.41% and Coal India up by 2.34%. On the flip side, Axis Bank down by 0.11% was the only loser.

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 8273.85, up by 73.15 points or 0.89% 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 4.51%, Jindal Steel & Power up by 3.55%, Hindalco up by 3.49%, Tata Steel up by 2.94% and DLF up by 2.72%. On the flip side, PNB down by 0.34%, Kotak Mahindra Bank down by 0.28% and Cairn India down by 0.10% were the only losers.

Asian markets were trading mostly higher; with FTSE Bursa Malaysia KLCI trading higher by 1.16 points or 0.07% to 1,765.60; Jakarta Composite rising by 8.42 points or 0.16% to 5,175.41; Straits Times advancing by 10.41 points or 0.31% to 3,364.09; Taiwan Weighted spurting by 67.78 points or 0.74% to 9,286.28; Hang Seng rallying by 390.86 points or 1.67% to 23,740.20.

On the flip side, Nikkei 225 down by 89.12 points or 0.5% to 17,729.84; KOSPI Index slid by 20.3 points or 1.04% to 1,927.86 and  Shanghai Composite shedding 5.51 points or 0.17% to 3,152.10