Indian Equity markets make a gap-up opening led by FMCG and Healthcare

Extending their previous session’s gains, Indian Equity Markets have made a gap-up opening and are trading in green with gains of around quarter a percent that lifted both Sensex and Nifty above crucial 26,750 and 8,050 levels respectively, mainly on bargain buying activities by market-participants at lower levels. Meanwhile, broader indices also trading in line with larger counterparts were up with gains in the range of 0.25-0.50%. Sentiment on the street improved with Asian Development Bank president Takehiko Nakao statement that the bank is looking to increase exposure in India, especially in infrastructure, skill development and urban services, and proposes to increase lending to the country by almost half to $12 billion by 2018. Further, Appreciation in Indian rupee against dollar too supported the sentiments. The Rupee opened at 64.18 up by 6 paise after touching a 21-month low of 64.26 yesterday on fresh selling of dollars by banks and exporters.

In scrip specific development, Glenmark Pharmaceuticals was trading higher, extending its previous day’s rally, after the company received final nod from the United States Food & Drug Administration (USFDA) for generic oral contraceptive Levonorgestrel/Ethinyl Estradiol tablets and plans to commence shipping of the product immediately.

On the global front, the US markets ended higher as investors shrugged off worries about unsuccessful Greek debt talks. Asian market were mostly trading in green on Wednesday with the positive lead overnight from Wall Street prompting bargain hunting, even as caution prevailed ahead of the U.S. Federal Reserve's highly anticipated monetary policy announcement later in the day.

Back home traders were seen piling position in FMCG, Healthcare, IT, TECK and Metal while, selling was witnessed in Oil & Gas, Power, INFRA, Auto and Bankex. The market breadth on BSE was positive in the ratio of 977: 656 while 86 scrips remained unchanged.

The BSE Sensex is currently trading at 26764.58, up by 78.07 points or 0.29% after trading in a range of 26728.89 and 26857.37. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.27%, while Small cap index gained 0.48%.

The top gaining sectoral indices on the BSE were FMCG up by 1.03%, Healthcare up by 0.65%, IT up by 0.63%, TECK up by 0.44% and Metal up by 0.16% while, Oil & Gas down by 0.57%, Power down by 0.44%, INFRA down by 0.39%, Auto down by 0.18% and Bankex down by 0.12% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.45%, Cipla up by 2.16%, Tata Steel up by 1.78%, Infosys up by 1.08% and Dr. Reddys Lab up by 0.81%. On the flip side, Vedanta down by 2.30%, Tata Power down by 1.42%, BHEL down by 1.18%, Tata Motors down by 1.08% and Reliance Industries down by 0.86% were the top losers.

Meanwhile, in a mixed economic development, while the Indian trade deficit narrowed to $10.4 billion in May against $11.2 billion in the same month a year ago,  the country's merchandise exports declining for the sixth straight month shrank 20.2 percent to $22.35 billion in May, dragged down by a slump in global demand. The trade deficit for April-May, 2015-16 was estimated at $ 21398.54 million which was higher than the deficit of $ 21320.69 million during April-May, 2014-15.

As per the government data, exports during May, 2015 were valued at $22346.75 million which was 20.19 per cent lower in Dollar terms than the level of $27998.50 million and in rupee terms stood at Rs 142572.92 crore, 14.14 per cent lower compared to Rs 166045.09 crore during May, 2014.Cumulative value of exports for the period April-May 2015-16 was $ 44401.47 million as against $53632.58 million, while in rupee term it stood at  Rs 280973.36 crore compared to Rs 320763.69 crore, registering a negative growth of 17.21 per cent in Dollar terms and 12.40 per cent in Rupee terms over the same period last year.

The imports also fell 16.5 percent to $32.8 billion in May, valued at $32752.99, 16.52 per cent lower against $39233.24 million. In Rupee terms the level of imports valued at Rs.208965.06 crore, 10.19 per cent lower compared to Rs. 232672.72 crore in May, 2014. Cumulative value of imports for the period April-May 2015-16 was $65800.01 million as against $ 74953.27 million, while in rupee terms it was Rs 416345.69 crore against Rs 448266.65 crore, registering a negative growth of 12.21 per cent in Dollar terms and 7.12 per cent in Rupee terms over the same period last year.

Oil imports during May, 2015 were valued at $8538.67 million, 40.97  per cent lower than oil imports valued at US $14464.88 million in the corresponding period last year. Oil imports during April-May, 2015-16 were valued at $ 15981.59 million which was 41.76 per cent lower than the oil imports of $ 27442.71 million in the corresponding period last year. Non-oil imports during May, 2015 were estimated at $24214.32 million, 2.24 per cent lower than non-oil imports of $24768.36 million in May, 2014. Non-oil imports during April-May, 2015-16 were valued at $ 49818.42 million which was 4.86 per cent higher than the level of such imports valued at $ 47510.56 million in April-May, 2014-15. The country's gold imports however increased by 10.4 percent to $2.42 billion in May this year.

The CNX Nifty is currently trading at 8056.60, up by 9.30 points or 0.12% after trading in a range of 8052.85 and 8092.55. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.33%, Cipla up by 2.14%, Tata Steel up by 1.82%, Asian Paints up by 1.61% and Infosys up by 1.06%. On the flip side, Vedanta down by 2.41%, BPCL down by 2.00%, Tata Power down by 1.62%, NMDC down by 1.52% and Bank of Baroda down by 1.41% were the top losers.

Asian markets were mostly trading in green; KOSPI Index increased 1.01 points or 0.05% to 2,029.73, FTSE Bursa Malaysia KLCI increased 1.15 points or 0.07% to 1,723.39, Taiwan Weighted increased 23.26 points or 0.25% to 9,236.04, Straits Times increased 38.23 points or 1.16% to 3,336.32, Jakarta Composite increased 71.95 points or 1.48% to 4,944.55 and Hang Seng increased 80.18 points or 0.3% to 26,646.88.

On the flip side, Nikkei 225 decreased 94.96 points or 0.47% to 20,162.98 and Shanghai Composite decreased 61.69 points or 1.26% to 4,825.74.