Markets continue to trade firm with gains of over 0.50%

Coming out of the seven consecutive sessions depreciating streak, local equity markets continued trading firm with gains of over half a percent, which kept both Sensex and Nifty above psychologically crucial 28,350 and 8,550 levels respectively. The gains came even as trend showed that the anti-corruption Aam Aadmi Party (AAP) was heading for a landslide victory in the 70-seat Delhi assembly. Sentiment was buttressed after Central Statistics Office (CSO) released advanced Gross Domestic Product (GDP) estimate, showed that Indian economy was poised to grow by 7.4% in the current year, bettering 6.9% recorded last year. However, the economy grew at 7.5 per cent in the third quarter ending December, lesser than the second quarter growth of 8.2 percent, as growth in agricultural sector contracted by 0.4 percent as against a growth of 3.8 percent, mining and quarrying sector too expanded at a slower rate of 2.9%, while the manufacturing too slowed to 4.2% as against a growth of 5.9% in the same quarter last fiscal. With across the buying activity taking place, broader indices also participated into the rally, rather outperformed larger counterparts to trade with gains of over 0.75%.

On the global front, Asian stock markets traded mixed on Tuesday, amid tensions between Greece and its euro zone creditors, and as fresh Chinese data added to concerns about a persisting slowdown. The mainland's consumer price index (CPI) rose 0.8 percent in January from a year ago period, below street expectation for a over a percent gain.

Closer home, while most of the sectoral indices were trading into positive territory, stocks from Information Technology, Realty and Oil & Gas counters were acting contrary to the trend. On the flip side, stocks from Banking, followed by Auto and Metal counters were the prominent gainers of the session. Rupee’s appreciation mainly took a toll on IT stock, while bargain buying activities lifted banking shares after sessions of drubbing. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1516:890; while 98 shares remained unchanged.

The BSE Sensex is currently trading at 28378.05, up by 150.66 points or 0.53% after trading in a range of 28044.49 and 28633.72. There were 20 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.75%, while Small cap index was higher by 0.88%.

The top gaining sectoral indices on the BSE were Bankex up by 1.73%, Auto up by 1.44%, Metal up by 1.42%, Consumer Durables up by 1.10%, INFRA up by 1.09% while, IT down by 0.69%, TECK down by 0.60%, Realty down by 0.39%, Oil & Gas down by 0.18% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 3.45%, ICICI Bank up by 3.07%, Mahindra & Mahindra up by 2.45%, Sesa Sterlite up by 2.31% and Tata Motors up by 2.30%. On the flip side, Wipro down by 1.30%, Sun Pharma Inds down by 1.20%, TCS down by 1.05%, HDFC down by 0.59% and Reliance Industries down by 0.31% were the top losers.

Meanwhile, a Parliamentary panel has invited suggestions on the proposed amendment to the Electricity Act, which seeks to provide choice of power suppliers to consumers and propel growth in the sector, for examination. The Standing Committee on Energy (Sixteenth Lok Sabha) under the Chairpersonship of Kirit Somaiya, Member of Parliament, has referred the Electricity Amendment Bill, 2014 for examination and presenting a report to Parliament.

Considering the importance of the subject, the committee has invited suggestions, views and suggestions from stakeholders, individuals, experts, institutions/and organisations interested in the subject within 10 days of publication of communique of February 10.

The amendments have been suggested in order to promote competition, efficiency and improvement in the supply of electricity resulting in capacity addition and benefiting consumers.

While, the Cabinet, in December, approved various amendments to the existing Electricity Act 2003, Power and Coal Minister Piyush Goyal had earlier indicated that amendments to the Electricity Act, 2014 should come into effect by April.

The CNX Nifty is currently trading at 8581.95, up by 55.60 points or 0.65% after trading in a range of 8470.50 and 8646.25. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.58% and ICICI Bank up by 3.20% and IDFC up by 3.09% and Bank Of Baroda up by 2.97% and Sesa Sterlite up by 2.69%. On the flip side, DLF down by 3.95%, Tech Mahindra down by 1.79%, HCL Tech. down by 1.72%, Zee Entertainment down by 1.51% and Wipro down by 1.23% were the top losers.

Asian markets were trading mix; with FTSE Bursa Malaysia KLCI trading higher by 3.54 points or 0.2% to 1,815.12; Straits Times trading higher by 11.04 points or 0.32% to 3,429.06;  Shanghai Composite trading higher by 25.08 points or 0.81% to 3,120.21. On the flip side, Nikkei 225 trading lower by 59.25 points or 0.33% to 17,652.68; Taiwan Weighted trading lower by 27.8 points or 0.3% to 9,393.70; Hang Seng trading lower by 22.16 points or 0.09% to 24,498.84;  KOSPI Index trading lower by 11.14 points or 0.57% to 1,935.86 and Jakarta Composite trading lower by 10.44 points or 0.2% to 5,338.03.