Markets continue to trade firm amid gains in Capital Goods, Realty stocks

Indian bourses continued their firm trade in the afternoon session on value-buying in blue-chips which became attractive after recent losses amid a firm trend in the Asian markets. Sentiment got a boost with World Bank report that India has figured in top five emerging economies for highest investment commitments despite a drop in investment commitments of USD 6.2 billion last year. According to a World Bank, the five sectors in which India has still topped are private sector, infrastructure sectors energy, transport and water. However, gains remained capped on report that selling by foreign institutional investors continued and they were net sellers in Indian equities worth Rs 645.02 crore on June 09, 2015. Meanwhile, some investors remained on the sidelines and refrained from any buying activity ahead of key macro data slated to be announced later in the week.On global front, Asian shares rebounded from three-month lows on Wednesday, though the spectre of higher borrowing costs in the United States and concerns about the apparent lack of progress in talks between Greece and its creditors sapped confidence.Back home, Indian rupee depreciated 11 paise to 64.03 against the US dollar in early trade due to appreciation of the American currency overseas.

Back on street, all the BSE sectoral indices were trading significantly in the green. Among them, Capital Goods index was the star-performer and was up 2.05 percent, followed by Realty up by 1.76 per cent and Infrastructure up by 1.20 percent. In scrip specific development, Shares of PVR have gained after the company entered into a definitive agreement to acquire the cinema exhibition business of DLF Utilities Limited operated under the brand name of ‘DT Cinemas’ on a slump sale basis for Rs 500 crore. Furthermore, Sun Pharma Advanced Reseasrch Company ( SPARC) rose after the company licensed out Xelpros (Latanoprost BAK-free eye drops) to a subsidiary of Sun Pharma for the US market.

The market breadth on BSE was positive, out of 2242 stocks traded, 1559 stocks advanced, while 594 stocks declined on the BSE. 

The BSE Sensex is currently trading at 26706.55, up by 225.30 points or 0.85% after trading in a range of 26493.29 and 26779.79. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.15%, while Small cap index up by 1.14%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.05%, Realty up by 1.76%, Infrastructure up by 1.20%, Consumer Durables up by 1.19% and Bankex up by 1.17%, while there were no losers on the sectoral space.

The top gainers on the Sensex were BHEL up by 3.03%, Larsen & Toubro up by 2.49%, Reliance Industries up by 2.35%, Bharti Airtel up by 1.77% and Bajaj Auto up by 1.71%. On the flip side, Hindustan Unilever down by 0.41%, ITC down by 0.40%, Infosys down by 0.21% and HDFC down by 0.18% were the top losers.

Meanwhile, India has pitched for a better ranking on ease of doing business apprising the World Bank about various reform measures taken in the past one year including relaxation in company laws. A two-member mission of the World Bank Group is visiting India to collect data and information for Doing Business Report, 2016. India ranked 142 among 189 nations in World Bank's Ease of Doing Business 2015 report.

A meeting was convened on June 8 at the Department of Economic Affairs (DEA) under the chairmanship of Additional Secretary Ajay Tyagi and attended by representatives from the DEA, Department of Industrial Policy and Promotion (DIPP), Ministry of Corporate Affairs and Central Board of Direct Taxes (CBDT), as well as members of the World Bank Group.

The Indian officials impressed upon the importance given by the government to improve regulatory environment across India, the World Bank Mission appreciated the efforts made by the government and promised to take note of initiatives taken by Government of India and State Government.

The members of the Mission Nadine Abi-Chakra and Baria Nabil Daye were also informed about the various reforms undertaken by the government, including, single step incorporation of companies through INC-29 Form, loans or guarantee to fully owned subsidiary company facilitated and process to approve related party transaction made simpler. The government is keen to improve ease of doing business in the country to attract foreign funds as well as spur domestic investments.

The CNX Nifty is currently trading at 8094.80, up by 72.40 points or 0.90% after trading in a range of 8023.80 and 8110.75. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 4.45%, BHEL up by 3.09%, Larsen & Toubro up by 2.62%, Reliance Industries up by 2.45% and Indusind Bank up by 2.38%. On the flip side, Ambuja Cement down by 1.17%, Power Grid down by 0.48%, Hindustan Unilever down by 0.40%, ITC down by 0.27% and Infosys down by 0.18% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI was up by 0.42%, Straits Times gained 1.09%, Hang Seng was higher by 0.24%, Shanghai Composite up by 0.16%, Jakarta Composite surged by 1.34% and Taiwan Weighted added 1.25%. On the other hand, Nikkei 225 was down by 0.26% and KOSPI Index lost 0.59%.