Benchmarks trade in fine fettle in early deals

Extending their previous session's rally, Indian equity benchmarks have made a positive start and are trading in fine fettle in early deals with key gauges recapturing their crucial 8,500 (Nifty) and 28,000 (Sensex) levels on sustained buying by funds and retail investors amid positive global cues.  Sentiments remained upbeat on report that the credit rating agency Moody's has said that Indian government's efforts to revive the stranded gas-based power projects will benefit the banks as they have significant exposure to such plants.

Global cues too remained supportive with the US markets bouncing back and rallying in last session, supported by some positive economic data and partly due to bargain hunting following last week's pullback. Pending home sales jumped to their highest level in twenty months, while personal income rose by slightly more than expected in the month of February. The Asian markets were trading mostly in the green at this point of time with some of the indices heading for their best quarter in three years, as China moved to support economic growth. Comments from People’s Bank of China governor Zhou Xiaochuan generated optimism about additional stimulus.

On the sectoral front, oil and gas, public sector undertaking and metal witnessed the maximum gain in trade, while banking and fast moving consumer goods remained the only losers on the BSE sectoral space. The broader indices too were trading with traction in early deals, while the market breadth on the BSE was negative; there were 1333 shares on the gaining side against 488 shares on the losing side while 59 shares remain unchanged.

The BSE Sensex is currently trading at 28043.94, up by 68.08 points or 0.24% after trading in a range of 28026.27 and 28107.11. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index up by 1.14%.

The gaining sectoral indices on the BSE were Oil & Gas up by 2.02%, PSU up by 0.94%, Metal up by 0.94%, Healthcare up by 0.88% and Infrastructure up by 0.73% while, Bankex down by 0.19% and FMCG down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 2.75%, Dr. Reddys Lab up by 2.16%, Reliance Industries up by 1.96%, Tata Power up by 1.88% and Hindustan Unilever up by 1.66%. On the flip side, NTPC down by 1.46%, ITC down by 0.91%, Bajaj Auto down by 0.68%, ICICI Bank down by 0.36% and HDFC Bank down by 0.35% 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 8516.35, up by 24.05 points or 0.28% after trading in a range of 8499.85 and 8530.60. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.58%, Sesa Sterlite up by 2.70%, Dr. Reddys Lab up by 2.57%, Tata Power up by 2.15% and Reliance Industries up by 2.07%. On the flip side, NTPC down by 1.59%, Ultratech Cement down by 1.57%, Bajaj Auto down by 0.99%, Zee Entertainment down by 0.69% and HCL Tech. down by 0.67% were the top losers.

Asian markets trtade mostly in the green; Shanghai Composite rose 4.24 points or 0.11% to 3,790.81, FTSE Bursa Malaysia KLCI gained 6.18 points or 0.34% to 1,828.01, KOSPI Index increased 6.75 points or 0.33% to 2,036.79, Nikkei 225 advanced 25.88 points or 0.13% to 19,437.28, Taiwan Weighted added 38.23 points or 0.4% to 9,560.10, Jakarta Composite surged 52.81 points or 0.97% to 5,491.47 and Hang Seng was up by 116.49 points or 0.47% to 24,971.61. On the flip side, Straits Times was down by 4.67 points or 0.14% to 3,449.59.