Benchmarks add gains; Capital Goods, FMCG lead

Indian equity markets added gains and started trading near the highest point of the day in the late afternoon session on account of buying in frontline blue chip counters. The sentiments were on optimistic note after global rating agency Fitch underscored that sustained fiscal consolidation, structural reforms and low inflation were positive for the country's ratings, prevented sharper slide of Indian currency. Traders were seen piling positions in Capital Goods, FMCG and PSU stocks. In scrip specific development, Pennar Industries was trading in green after the company’s unit, Pennar Engineered Buildings Systems, filed for a public issue.

On the global front, the Asian markets were trading in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,450 and 27,800 levels respectively. The market breadth on BSE was positive in the ratio of 1902:716 while 68 scrips remained unchanged.

The BSE Sensex is currently trading at 27886.12, up by 427.48 points or 1.56% after trading in a range of 27624.76 and 27900.53. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.65%, while Small cap index up by 2.82%.

The gaining sectoral indices on the BSE were Capital Goods up by 2.32%, FMCG up by 2.22%, PSU up by 1.91%, Realty up by 1.75%, INFRA up by 1.67%.

The top gainers on the Sensex were ITC up by 3.69%, ONGC up by 3.52%, Bharti Airtel up by 3.35%, Coal India up by 3.18% and HDFC up by 2.65%. On the flip side, Tata Power down by 1.33%, Hindalco down by 1.27%, GAIL India down by 0.32%, Reliance Industries down by 0.20% and Tata Motors down by 0.10% were the top losers.

Meanwhile, in a positive development for the country, global rating agency, Fitch just right ahead of its annual sovereign rating scheduled for next month, in its report underscored that sustained fiscal consolidation, structural reforms and low inflation were positive for the country's ratings. The agency has allocated a 'BBB-'rating for the country with a stable outlook, which is the lowest investment grade rating.

According to the agency, while sustained fiscal consolidation or fiscal reforms would lead to a decline in the ratio of general government debt to GDP, implementation of structural reforms would raise the potential growth rate.Further, the rating agency also pointed that credible low-inflation environment will also be favorable for the rating. The agency, however, cautioned that a sharp and sustained external shock to foreign and domestic investors' confidence with the potential to cause external financing difficulties, such as an undue change in the monetary policy strategy was a threat for the country's credit rating.

As per the agency, India’s GDP growth is likely to be at 7.4% this fiscal and 8% in the next, based on new series. It suggested that government should focus on growth-enhancing reforms such as governance and investment climate; and infrastructure and inflation.

The CNX Nifty is currently trading at 8465.80, up by 124.40 points or 1.49% after trading in a range of 8380.75 and 8466.20. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 4.03%, Idea Cellular up by 3.86%, ITC up by 3.43%, Bharti Airtel up by 3.19% and ONGC up by 3.12%. On the flip side, Tech Mahindra down by 2.91%, Hindalco down by 1.64%, Cairn India down by 1.60%, Tata Power down by 1.40% and GAIL India down by 0.29% were the top losers.

The Asian markets were trading in green; Straits Times increased 4.2 points or 0.12% to 3,454.30, FTSE Bursa Malaysia KLCI increased 10 points or 0.55% to 1,823.37, KOSPI Index increased 10.24 points or 0.51% to 2,030.04, Taiwan Weighted increased 18.15 points or 0.19% to 9,521.87, Jakarta Composite increased 59.63 points or 1.1% to 5,456.48, Shanghai Composite increased 95.47 points or 2.59% to 3,786.57, Nikkei 225 increased 125.77 points or 0.65% to 19,411.40 and Hang Seng increased 368.92 points or 1.51% to 24,855.12.

The European markets were trading in green; UK’s FTSE 100 increased 50.42 points or 0.74% to 6,905.44, France’s CAC increased 57.16 points or 1.14% to 5,091.22 and Germany’s DAX increased 178.1 points or 1.5% to 12,046.43.