Benchmarks soar to day’s high level on persistent buying activities

Barometer gauges going strength to strength, were trading at day’s high point on relentless buying activity by both funds and retail investors after UN ESCAP report forecasted Indian economic growth at 8.1% in the current year from 7.4% last year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures. The sentiments were bolstered after the India Meteorological Department (IMD) forecasted that the southwest monsoon will hit the Kerala coast on May 30, two days ahead of schedule, which bodes well for timely sowing of crops.

At day’s high point, both Sensex and Nifty were trading above psychologically crucial 27,300 and 8,250 levels respectively, with gains of around half of a percent. Meanwhile, the session  was also splendid for broader indices, which outperforming larger counterparts, were trading with gains in the range of 0.50-0.95%.

On the global front, Asian shares looked set for a negative close as investors awaited more US data later in the session for clues on the timing of the US Federal Reserve’s interest rate hike.  Meanwhile, the losses were led by Chinese stocks which slumped after Xiao Gang, chairman of the China Securities Regulatory Commission, said that the watchdog's recent move to accelerate approvals for initial public offerings won't have a big impact on the market - which some interpreted as a signal IPO activity could be stepped up further.

Closer home, almost all the sectoral indices on BSE were trading in positive territory, barring stocks from Metal, Oil & Gas counters which were the top losers of the session. On the flip side, maximum buying was witnessed by stocks from Consumer Durables, Capital Goods and Auto counters which were the top gainers of the session. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1310:696; while 41 shares remained unchanged.

The BSE Sensex is currently trading at 27318.77, up by 112.71 points or 0.41% after trading in a range of 27159.76 and 27379.57. There were 15 stocks advancing against 14 stocks declining on the index.

 The broader indices were trading in green; the BSE Mid cap index was up by 0.55%, while Small cap index gained 0.93%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.60%, Capital Goods up by 0.88%, Auto up by 0.74%, Bankex up by 0.74%, TECK up by 0.64% while, Metal down by 1.25%, Oil & Gas down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.19%, Bharti Airtel up by 2.06%, Mahindra & Mahindra up by 1.64%, Axis Bank up by 1.56% and HDFC up by 1.38%. On the flip side, Hindalco down by 1.60%, Vedanta down by 1.26%, Tata Steel down by 1.26%, Coal India down by 1.04% and NTPC down by 0.76% were the top losers.

Meanwhile, Finance Minister Arun Jaitley, who just got a slew of reform measures approved in the just-concluded budget session of parliament, pointed that economy was in a recovery mode with inflation and fiscal deficit being under control and asserted of despondency now giving into a positive environment.

Further, listing the positives for the economy, Finance Minister Arun Jaitley unveiled that while services sector was expanding, infrastructure spending had increased and most of the laws that aimed to improve the management of the economy have sailed through in Parliament.

 Also, he unveiled that Modi-led government in the second year would be increasing spending on rural infrastructure, including irrigation and social sector schemes, but acknowledged the challenges to roll out the already expanded expenditure in infrastructure that would be very critical for growth in manufacturing. However, the minister expressed hopes of Reserve bank of India slashing rates in upcoming monetary policy on June 2, 2015.

Among the various reform measures taken so far, the government was able to get the legislations regarding insurance, coal and other minerals, black money bill, Companies laws amendment bill and Negotiable Instruments amendment bill approved in Parliament.

He also highlighted that good progress was made on the Goods and Service Tax (GST) bill, which the government was hopeful of getting passed in the Monsoon session in July and further outlined that referral of land acquisition bill to the 30-member Joint Committee was the fastest route of getting approval.

The CNX Nifty is currently trading at 8258.60, up by 34.40 points or 0.42% after trading in a range of 8212.20 and 8279.20. There were 25 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Lupin up by 2.88%, Indusind Bank up by 2.74%, SBI up by 2.03%, Yes Bank up by 2.01% and Bharti Airtel up by 1.92%. On the flip side, PNB down by 1.99%, Hindalco down by 1.71%, NMDC down by 1.58%, Vedanta down by 1.51% and Tata Steel down by 1.45% were the top losers.

Asian markets were trading mostly lower; Shanghai Composite down by 37.01 points or 0.85% to 4,341.30; Taiwan Weighted down by 31.35 points or 0.33% to 9,579.48; Jakarta Composite down by 28.27 points or 0.54% to 5,217.86; KOSPI Index down by 13.83 points or 0.65% to 2,106.50; FTSE Bursa Malaysia KLCIdown by 2.55 points or 0.14% to 1,805.00 and Straits Times down by 0.39 points or 0.01% to 3,455.39. On the flip side, Nikkei 225 up by 162.68 points or 0.83% to 19,732.92 and  Hang Seng up by 504.95 points or 1.85% to 27,791.50.