Markets trade flat with positive bias in range-bound session of trade

In the extremely range-bound session of trade, Indian equity benchmarks altering between positive and negative territory, were now trading flat with bit of positive bias as investors avoided taking long positions ahead of the RBI’s bi-monthly monetary policy review slated tomorrow. Governor Raghuram Rajan’s action can either send stocks soaring or crashing, depending on whether rates are cut or status quo is maintained. Meanwhile, the broader markets outperformed benchmark indices as investors turned their focus on fundamentally sound mid-cap and small-cap stocks as valuations in large-cap stocks seem stretched after Wednesday’s rally. Sentiment on the street improved after an HSBC survey said India's manufacturing sector output rose in March amid stronger increase in new orders that led firms to boost production levels. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 210 crore on April 01, 2015.

On global front, Asian shares rose after a dismal U.S. jobs report led investors to pare bets the US Federal Reserve would hike interest rates anytime soon. Labor Department data showed US employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by most of economists. Back home, Indian rupee appreciated by 37 paise to 62.12 against the US dollar in early trade after the American currency weakened overseas amid a higher opening in the domestic equity market.

Back on street, stocks from FMCG, Auto and Consumer Durables counters were supporting the markets’ uptrend, while those from Metal, Banking and IT counters were adding to the underlying cautious undertone. In scrip specific development, shares of SML Isuzu have surged after reporting a 33% year on year growth in vehicles sales at 1,772 units for the month of March 2015. Furthermore, Aurobindo Pharma rose after the company received USFDA approval for Sildenafil injection used for treating adult patients (18 and above years) with pulmonary arterial hypertension.

The market breadth on BSE was positive, out of 2165 stocks traded, 1369 stocks advanced, while 698 stocks declined on the BSE. 

The BSE Sensex is currently trading at 28294.21, up by 34.07 points or 0.12% after trading in a range of 28235.58 and 28367.58. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.66%, while Small cap index up by 1.03%.

The gaining sectoral indices on the BSE were FMCG up by 0.97%, Auto up by 0.88%, Consumer Durables up by 0.85%, Oil & Gas up by 0.75% and Capital Goods up by 0.45% while, Metal down by 0.84%, Bankex down by 0.30%, IT down by 0.27%, TECK down by 0.17% and Power down by 0.16% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 3.58%, Mahindra & Mahindra up by 2.34%, Tata Motors up by 2.05%, Cipla up by 1.98% and ONGC up by 1.89%. On the flip side, HDFC down by 1.60%, Tata Steel down by 1.40%, BHEL down by 1.29%, Tata Power down by 1.23% and Sesa Sterlite down by 1.18% were the top losers.

Meanwhile, to avert disruption in power generation and giving some relief to the coal based power plants, which had lost their mines after the Supreme Court cancelled licences of 204 blocks last year; the government has extended till June-end short-term supply of coal to power plants. Earlier, Coal India was asked to supply fuel to such power plants on a tapering basis till March 31, subject to review after that date.

Based on the recommendation of the Standing Linkage Committee (Long-Term) for Power, now the government has issued a fresh directive, saying that supply of fuel to power plants, the blocks of which were cancelled by the Supreme Court last year, will continue till June 30, 2015 since these are running plants.

The dispensation will apply to those power plants which are part of 78,000 MW list approved by the Cabinet Committee on Economic Affairs (CCEA) and are running, and have long-term power purchase agreements (PPAs).

The committee has however said that in case of supply of coal starts from schedule II (producing) blocks allocated to fresh allocatees in the current auction process, the dispensation shall cease in respect of the units linked to such coal blocks.

The CNX Nifty is currently trading at 8590.10, up by 3.85 points or 0.04% after trading in a range of 8575.65 and 8619.15. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 3.36%, Mahindra & Mahindra up by 2.32%, ACC up by 2.21%, Tata Motors up by 1.98% and Tech Mahindra up by 1.77%. On the flip side, HDFC down by 1.99%, HCL Tech. down by 1.84%, PNB down by 1.51%, Tata Steel down by 1.34% and Tata Power down by 1.29% were the top losers.

Asian markets were trading mostly in the green; Straits Times rose 0.04%, KOSPI Index increased 0.11%, FTSE Bursa Malaysia KLCI gained 0.43%, Jakarta Composite advanced 0.39%, Shanghai Composite surged 1%, Taiwan Weighted added 0.97% and Hang Seng was up by 0.77%. On the flip side, Nikkei 225 was down by 0.15%.