Benchmarks trade in fine fettle in early deals

Indian equity benchmarks are trading in fine fettle in early deals on last session of the calendar year as sentiments got some support with the government stating that to boost manufacturing sector, it intends to develop industrial corridors and smart cities for providing infrastructure based on modern technology with high-speed communication. While, there is good news for foreign investors too, as the government in its quest for attracting maximum foreign investment, has amended the Arbitration Act to make it mandatory for a judge presiding over commercial disputes to settle cases within nine months.

On the global front, the US markets ended lower in last session, although the selling pressure remained low but the major averages ended the day firmly in negative territory, weighed down by the weakness in the overseas markets. The Asian markets were trading mostly in the green at this point of time led by Chinese market which rose over half a percent despite country’s factory gauge sinking to a seven-month low in December.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. On the sectoral front, infrastructure, power and metal witnessed the maximum gain in trade, while poauto remained the lone loser on the BSE sectoral space. The broader indices too were trading in line with benchmarks, while the market breadth on the BSE was positive; there were 1,176 shares on the gaining side against 637 shares on the losing side while 65 shares remain unchanged.

The BSE Sensex is currently trading at 27474.48, up by 70.94 points or 0.26% after trading in a range of 27346.00 and 27483.48. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50%, while Small cap index up by 0.53%.

The gaining sectoral indices on the BSE were Infrastructure up by 1.05%, Power up by 0.66%, Metal up by 0.63%, Oil & Gas up by 0.51% and Capital Goods up by 0.49% while, Auto was down by 0.47% was the lone losing index on BSE.

The top gainers on the Sensex were Hindalco up by 1.66%, Dr. Reddys Lab up by 1.05%, ICICI Bank up by 0.88%, NTPC up by 0.88% and Tata Power up by 0.80%. On the flip side, Mahindra & Mahindra down by 1.65%, Bajaj Auto down by 0.79%, Maruti Suzuki down by 0.52%, Hero MotoCorp down by 0.48% and HDFC Bank down by 0.31% were the top losers.

Meanwhile, with an aim to boost domestic manufacturing, Prime Minister Narendra Modi has promised to change laws and style of government functioning to create jobs and bring the derailed economy back on track. After launching the 'Make in India' campaign three months ago, Prime Minister has recently heard industry leaders and government officials on impediments hindering the manufacturing sector and promised collective and transparent decision-making.

Unveiling his vision for making India a manufacturing hub, Prime Minister stressed that government is adding a new paradigm to the public private partnership (PPP) model by involving all stakeholders in key decision-making processes. Further, he added that the government is taking measures to change ABCD culture of government – ‘avoid, bypass, confuse and delay’ to ROAD which stands for ‘responsibility, ownership, accountability, discipline’.

By adding further, Narendra Modi emphasized that growth should be balanced across India and special efforts should be made to ensure that the east, which is rich in natural resources, should be as developed as the western part of the country. Prime Minister also called for making a globally recognized 'Brand India' famous for ‘zero defect, zero effect’ manufacturing -- free from defects and with no adverse impact on the environment. 

The CNX Nifty is currently trading at 8270.55, up by 22.30 points or 0.27% after trading in a range of 8243.75 and 8275.95. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 1.88%, Hindalco up by 1.57%, Dr. Reddys Lab up by 1.02%, Power Grid up by 0.98% and ICICI Bank up by 0.97%. On the flip side, Mahindra & Mahindra down by 1.69%, Bajaj Auto down by 0.86%, HCL Tech. down by 0.72%, BPCL down by 0.59% and Maruti Suzuki down by 0.47% were the top losers.

The Asian markets were trading mostly in the green; FTSE Bursa Malaysia KLCI increased 1.53 points or 0.09% to 1,768.36, Straits Times rose 3.52 points or 0.1% to 3,369.63, Shanghai Composite added 21.58 points or 0.68% to 3,187.39 and Hang Seng was up by 103.94 points or 0.44% to 23,605.04. On the flip side, Taiwan Weighted was down 8.08 points or 0.09% to 9,260.35.