Benchmarks continue to trade in green in late morning session

After getting a positive start, Benchmarks showed some strength in early morning trades and continued to trade in narrow range in late morning deals, with the Sensex over the 27,250 and the Nifty above 8,250 marks.  Apart from blue chips, broader indices too equally participated in the gain with both mid cap and small cap indices trading up by 0.62% and 0.92% respectively. The sentiments were on optimistic note with an UN report, saying that Indian economy is likely to clock 8.1 percent growth in the current financial year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures. Finance Minister Arun Jaitley too has said that the economy was in a recovery mode with inflation and fiscal deficit under control and despondency giving way to a positive environment. However, investors remained cautious on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 73.76 crore on May 14, 2015.

On global front, most of the Asian markets edged lower as investors awaited more US data later in the session for clues on the timing of the US Federal Reserve’s interest rate hike. However, the Japanese market gained after Wall Street surged on receding worries about a US interest rate hike, while Nikon Corp tumbled after releasing a weak earnings forecast. Back home, rising for the third straight day, the rupee strengthened by 18 paise to 63.47 against the US dollar in early trade on continued selling of the American currency by banks and exporters.

Back on street, barring Metal, all other BSE sectoral indices were trading in the green. Among them, Consumer Durables index was the star-performer and was up 1.29 per cent, followed by auto 0.84 per cent, FMCG 0.63 per cent and infrastructure 0.60 per cent, while Metal index was down 0.83 per cent. In scrip specific development, shares of KNR Constructions have surged after the company bagged a road project worth Rs 669 crore from National Highway Authority of India (NHAI). Furthermore, Jubilant FoodWorks rose after reporting 6.6% growth in same-store growth (SSG) for the quarter ended March 31, 2015.

The market breadth on BSE was positive, out of 2080 stocks traded, 1294 stocks advanced, while 689 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27282.64, up by 76.58 points or 0.28% after trading in a range of 27159.76 and 27379.57. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.62%, while Small cap index up by 0.92%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.29%, Auto up by 0.84%, FMCG up by 0.63%, infrastructure up by 0.60% and Capital Goods up by 0.53%, while Metal down by 0.83% was the only losing index on BSE.

The top gainers on the Sensex were SBI up by 1.64%, Axis Bank up by 1.41%, Mahindra & Mahindra up by 1.29%, HDFC up by 1.22% and Tata Motors up by 1.16%. On the flip side, Tata Steel down by 1.57%, Hindalco down by 1.31%, Coal India down by 0.92%, GAIL India down by 0.64% and Dr. Reddys Lab down by 0.57% were the top losers.

Meanwhile, Going in line with the estimates of the Finance Ministry, an UN ESCAP report titled, 'Economic and Social Survey of Asia and the Pacific 2015’ has said that Indian economy is likely to clock 8.1 percent growth in the current financial year, from 7.4 per cent last year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures.

The report said, growth is forecast to accelerate to 8.1 percent in 2015 and 8.2 percent in 2016, benefiting from the acceleration of infrastructure projects, strong consumer spending due to lower inflation and monetary easing and gradual improvements in market sentiments.

The report has also highlighted some concerns, saying that decline in inflation benefits from lower global energy prices, but structural factors that keep food prices remain high. These include post-harvest food waste that is up to 40 percent, lack of market competition, higher agricultural input prices and wages and an increase in minimum support prices. More than half of India's farming is rain-fed, so food prices are subject to weather conditions, it added.

For the whole Asia-Pacific region, the report stated that the region will remain susceptible to a range of risks and uncertainties - among others, possible fresh bouts of financial market volatility, delays in addressing structural impediments, and political disruptions.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations for the Asia-Pacific region. To provide guidance to Asia-Pacific economies, ESCAP has also introduced a new multidimensional Index of Inclusiveness.  In its report ESCAP has highlighted that the growth potential of Asia-Pacific developing economies is being held back by infrastructure shortages and the excessive commodity dependence of some countries.

The CNX Nifty is currently trading at 8251.20, up by 27.00 points or 0.33% after trading in a range of 8212.20 and 8279.20. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.28%, Lupin up by 2.16%, Indusind Bank up by 2.12%, SBI up by 1.60% and Axis Bank up by 1.44%. On the flip side, Tata Steel down by 1.58%, PNB down by 1.43%, NMDC down by 1.43%, Hindalco down by 1.42% and Coal India down by 1.13% were the top losers.

Asian markets were trading mostly in the red; Shanghai Composite declined 1.44%, Jakarta Composite decreased 0.54%, Taiwan Weighted slipped 0.22%, KOSPI Index shed 0.4%, Straits Times dipped 0.41% and FTSE Bursa Malaysia KLCI was down by 0.14%. On the flip side, Nikkei 225 increased 0.68% and Hang Seng was up by 0.49%.