Benchmarks continue to trade in green in late morning session

Indian bourses continued to trade in green in late morning session on emergence of buying by funds and retail investors in select stocks. Sentiments got a boost with the Asian Development Bank’s (ADB’s) latest Outlook report, saying that developing Asia, which groups 45 countries in Asia-Pacific, is set to grow 6.3 per cent this year and the next, the same pace as in 2014. India and most Southeast Asian economies will lead the way, offsetting slowing growth in China. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 417 crore on March 23, 2015. However, a weak trend on other Asian bourses and overnight losses in the US markets, capped the gains. At present, benchmark equity indices have eked out modest profit of close to three tenths of a percent and trading past the crucial 28,250 (Sensex) and 8,550 (Nifty) levels respectively. 

On global front, Asian stocks declined after a preliminary survey of China's mammoth factory sector served up new worries over the state of the world's second-largest economy. Besides, traders continue to keep tabs on a meeting in Europe between the leaders of Greece and Germany for signs of progress in Greece's debt negotiations. Back home, Indian rupee strengthened by 9 paise at 62.18 against the US dollar in early trade on increased selling of the American currency by exporters.

Back on street, stocks from Consumer Durables, Infrastructure and Power counters were supporting the markets’ uptrend, while those from Auto, Banking and information technology (IT) counters were adding to the underlying cautious undertone. In scrip specific development, shares of Dr Reddy's Labs gained after the company entered into a licencing agreement with Hyderabd-based Hetero Drugs to distribute and market chronic Hepatitis C medicine Sofosbuvir 400 mg under the brand name Resof in India.

The market breadth on BSE was positive, out of 2275 stocks traded, 1121 stocks advanced, while 1049 stocks declined on the BSE. 

The BSE Sensex is currently trading at 28266.52, up by 74.50 points or 0.26% after trading in a range of 28157.83 and 28312.46. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.14%, while Small cap index up by 0.13%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.02%, Infrastructure up by 0.72%, Power up by 0.49%, Realty up by 0.31% and Oil & Gas up by 0.28% while, Auto down by 0.33%, Bankex down by 0.15% and IT down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.89%, Sesa Sterlite up by 1.60%, Sun Pharma up by 1.56%, HDFC up by 1.54% and BHEL up by 1.12%. On the flip side, Tata Motors down by 1.31%, Hero MotoCorp down by 1.25%, Hindalco down by 1.10%, Hindustan Unilever down by 1.00% and SBI down by 0.87% were the top losers.

Meanwhile, Indian growth story has received another affirmation after IMF and OECD, as the Asian Development Bank (ADB) in its landmark report Asian Development Outlook 2015 (ADO) has said that developing Asia, which groups 45 countries in Asia-Pacific, is set to grow 6.3 per cent this year and the next, the same pace as in 2014, while India and most Southeast Asian economies will lead the way, offsetting slowing growth in China.

The Manila-based bank in its report has said that India's economic growth is forecast to accelerate 7.8 percent this year from actual growth of 7.4 percent in 2014, a sharp increase from the ADB's December estimate of 6.3 percent growth, as the bank expects a rise in investments following reforms aimed at overcoming long-standing structural inefficiencies. It has further stated that growth in China is poised to cool from 7.4 percent last year to 7.2 percent this year and 7.0 percent next year, as authorities in the region's biggest economy make reforms in the face of a property downturn, factory overcapacity, and rising local debt.

ADB report has said that developing Asia is expected to post steady growth this year and the next, but a likely return to an upward cycle in US rates later this year may merit policy action to counter a reversal of capital flows. Rapid credit growth, with bank loans and bonds in the region’s 14 largest economies nearly doubled to $34.1 trillion in five years to 2013, supporting growth in the region.

The bank in its report has also cautioned that if the PRC (China) falters as it adjusts to its new normal, or if India reforms less decisively than anticipated, their slower growth could spill over to others in developing Asia, the region which accounts for nearly three-fifths of the world's annual GDP growth since the global financial crisis of 2009.

The ADO provides a comprehensive analysis of macroeconomic issues in developing Asia, including growth projections by countries and regions. The ADO has covered key economic areas like economic prospects for developing Asia and the Pacific, impacts of oil price changes on the economic outlook, risk of rising debt levels in developing Asia, the role of financial systems in supporting inclusive growth as well as approaches to expand financial inclusion.

The CNX Nifty is currently trading at 8570.00, up by 19.10 points or 0.22% after trading in a range of 8536.45 and 8584.20. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Lupin up by 2.58%, Jindal Steel & Power up by 2.46%, BPCL up by 2.43%, Bharti Airtel up by 1.64% and Sesa Sterlite up by 1.60%. On the flip side, Bank of Baroda down by 1.95%, Tata Motors down by 1.52%, NMDC down by 1.29%, Hero MotoCorp down by 1.28% and PNB down by 1.26% were the top losers.

Asian markets were trading mostly in the red; Hang Seng decreased 0.58%, Shanghai Composite declined 1.35%, KOSPI Index down by 0.04%, Taiwan Weighted shed 0.31% and Nikkei 225 slipped 0.18%. On the flip side, Straits Times increased 0.1%, FTSE Bursa Malaysia KLCI rose 0.60% and Jakarta Composite was up by 0.21%.