Benchmarks continue firm trade in late afternoon session

Indian equity markets continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters. The sentiments also got support after Organisation for Economic Cooperation and Development’s (OECD), in its interim economic assessment report pegged India’s growth to 7.7% this year and 8% in the coming year. Traders were seen piling positions in Consumer Durables, Metals and Capital Goods sector stocks. In scrip specific development, Oil India was trading firm after local brokerage firm upgraded its rating with an unchanged target price. SpiceJet was trading in red on reports that the aviation regulator has been directed by the Delhi High Court to de-register six aircrafts leased to the airline.

On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,700 and 28,800 levels respectively. The market breadth on BSE was positive in the ratio of 1375:1266 while 138 scrips remained unchanged.

The BSE Sensex is currently trading at 28811.67, up by 189.55 points or 0.66% after trading in a range of 28768.63 and 28978.74. There were 27 stocks advancing against 2 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 0.52%.

The gaining sectoral indices on the BSE were Consumer Durables up by 2.10%, Metal up by 1.24%, Capital Goods up by 1.11%, INFRA up by 0.74%, Power up by 0.66%

The top gainers on the Sensex were Tata Steel up by 3.57%, GAIL India up by 2.41%, Sun Pharma up by 2.22%, Larsen & Toubro up by 1.71% and TCS up by 1.53%. On the flip side, Reliance Industries down by 0.36% and HDFC Bank down by 0.19% were the top losers.

Meanwhile, to make the most of cheap prices, India is set to import 8 million barrels of Iraqi oil to fill its first strategic petroleum reserve (SPR), which would help it counterbalance the impact of an expected pause in China’s strategic stocks build and the start of spring maintenance at Asian refiners.

According to reports, India’s oil ministry on Tuesday has instructed state refiners Indian Oil Corporation and Hindustan Petroleum Corporation to each seek two very large crude carriers (VLCC) of Basra oil for arrival in May-June, totaling 8 million barrels.

Further towards this development, tenders are expected to be issued this month, while a meeting of federal cabinet to approve issue of tenders is expected to take place next week. A committee of directors suggested Basra oil on account of its suitability in refineries on India`s east coast. However, this is expected to be a one-off purchase as the stocks will be used only in case of supply disruptions.

Lastly, India’s finance ministry has provided Rs 24 billion from revised budget estimates for the current fiscal year to fill the first SPR.

The CNX Nifty is currently trading at 8741.15, up by 55.25 points or 0.64% after trading in a range of 8723.80 and 8788.20. There were 37 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Lupin up by 3.75%, Tata Steel up by 3.69%, Asian Paints up by 3.66%, GAIL India up by 2.41% and Sun Pharma up by 2.25%. On the flip side, PNB down by 1.57%, Tech Mahindra down by 1.42%, BPCL down by 1.18%, Bank of Baroda down by 1.18% and HCL Tech. down by 0.92% were the top losers.

The Asian markets were trading mostly in green; Shanghai Composite increased 4.97 points or 0.14% to 3,582.27, FTSE Bursa Malaysia KLCI increased 9.43 points or 0.52% to 1,807.00, KOSPI Index increased 9.44 points or 0.47% to 2,037.89, Straits Times increased 19.75 points or 0.59% to 3,381.50, Jakarta Composite increased 35.9 points or 0.66% to 5,449.06, Taiwan Weighted increased 83.3 points or 0.86% to 9,736.73 and Hang Seng increased 348.81 points or 1.45% to 24,468.89.

On the other hand, Nikkei 225 decreased 67.92 points or 0.35% to 19,476.56.

The European markets were trading in green; France’s CAC increased 15.59 points or 0.31% to 5,049.01, Germany’s DAX increased 40.82 points or 0.34% to 11,963.59 and UK’s FTSE 100 increased 27.81 points or 0.4% to 6,973.01.