Markets bounce off day’s low; broader indices continue to outperform

Local equity markets, witnessing bit of recovery, bounced off day’s low level on Tuesday on bargain buying activities by participants, who utilized dips to initiate buying of fundamentally strong blue chip companies. Nevertheless, sentiment remained broadly positive after US President Barack Obama, in a measure to bolster trade with India, pledged for investments and loans worth $4 billion by American agencies.  World’s largest economy’s president at the India-US business summit assured that while US Export-Import Bank would be committing up to $1 billion in financing made in American exports to India, US Trade and Development Agency will aim to leverage nearly $2 billion investments in renewable energy in India. Off day’s low, both Sensex and Nifty were trading with gains of around two tenths of a percent, above the crucial 29,300 and 8,800 levels respectively. Meanwhile, broader indices outperforming larger counterparts were trading with gains in the range of 0.35%-0.60%.

On the global front, Asian share markets were mostly firmer on Tuesday, relieved that European equities had weathered Greece’s election outcome without much disruption. However, bit of caution ahead of the U.S. Federal Reserve two-day policy meeting on Tuesday to some extent gains of Asian pacific shares.

Closer home, most of the sectoral indices on BSE were trading into positive territory, nevertheless stocks from Capital Goods, Consumer Durables and Realty counters were the prominent gainers of the session. On the flip side, massive drubbing was witnessed by stocks from Information Technology, PSU and Metal counters were the prominent losers of the session. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1369:1235; while 109 shares remained unchanged.

The BSE Sensex is currently trading at 29337.92, up by 59.08 points or 0.20% after trading in a range of 29286.09 and 29456.63. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.60%, while Small cap index up by 0.38%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.59%, Consumer Durables up by 1.13%, Realty up by 0.83%, Power up by 0.73% and Bankex up by 0.58% while, IT down by 1.57%, TECK down by 1.13%, Metal down by 1.07% and PSU down by 0.82% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 2.52%, Axis Bank up by 2.43%, ICICI Bank up by 2.28%, Tata Motors up by 1.83% and Larsen & Toubro up by 1.70%. On the flip side, Dr. Reddys Lab down by 4.11%, Infosys down by 3.23%, Mahindra & Mahindra down by 3.23%, Coal India down by 3.22% and Hindalco down by 2.38% were the top losers.

Meanwhile, in a measure to bolster trade with India, US President Barack Obama pledged for investments and loans worth $4 billion by American agencies.  World’s largest economy’s president at the India-US business summit assured that while US Export-Import Bank would be committing up to $1 billion in financing made in American exports to India, US Trade and Development Agency will aim to leverage nearly $2 billion investments in renewable energy in India.

The visiting US President also unveiled that Overseas Private Investment Corporation would support lending worth about $1 billion to small and medium businesses across India in under-served rural and urban markets.

Further, stressing that India and the US of being true global partners, Obama highlighted that the economies of two nations could grow and prosper together and establish a set of global norms in terms of how business could function, which would not just benefit the respective two countries but also the people around the world.

Obama, who is in the middle of a three-day visit to India, hailed the new change in tone at the top of India Inc but at the same time highlighted there were still 'too many obstacles' for businesses wanting to break into the vast market. The president called for consistency and simplicity in regulatory and tax environment in India.

The CNX Nifty is currently trading at 8843.65, up by 8.05 points or 0.09% after trading in a range of 8825.45 and 8878.20. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 3.27%, Axis Bank up by 2.43%, Cipla up by 2.40%, ICICI Bank up by 2.29% and Tata Motors up by 1.76%. On the flip side, Dr. Reddys Lab down by 4.26%, Cairn India down by 3.78%, Mahindra & Mahindra down by 3.38%, Infosys down by 3.32% and Coal India down by 3.31% were the top losers.

Asian markets were trading mostly higher; with FTSE Bursa Malaysia KLCI trading higher by 3.71 points or 0.21% to 1,800.15; KOSPI Index trading higher by 16.72 points or 0.86% to 1,952.40;  Straits Times trading higher by 23.2 points or 0.68% to 3,421.72;  Taiwan Weighted trading higher by 43.92 points or 0.46% to 9,521.59; Nikkei 225 trading higher by 299.78 points or 1.72% to 17,768.30. On the flip side, Hang Seng trading lower by 115.02 points or 0.46% to 24,794.88; Shanghai Composite trading lower 21.19 points or 0.63% to 3,362.00 and Jakarta Composite trading lower by 8.14 points or 0.15% to 5,251.88.