Markets after initial jitters moves on the gaining path

Indian markets after a cautious start and some initial jitters have regained their momentum on the eight day of gaining spree and were trading with over a quarter percent of gains in first hour of trade. The positive global cues have supported the markets to move higher, as the US markets ended in green on increased optimism that Greece will finally reach an agreement with its international creditors, on the other hand the Asian markets were mostly in green, barring the Chinese market which has given up its early gains. On the domestic front traders were getting support from the Finance Minister Arun Jaitley’s statement that the credibility of Indian economy has been partly restored and the momentum must be sustained over the next two years to win over and provide comfort to world investors. On the sectoral front, the banking stocks especially the PSU banks moved higher, as the Finance Secretary Rajiv Mehrishi has said that the Indian government intends to provide $ 9 billion (about Rs 57,000 crore) to public sector banks towards recapitalisation over the next two fiscal to meet global risk norms and for growth. PNB was up by 4.50%, BoB was up by 2.76%, SBI was up by 1.3%. The other sectors that were witnessing good buying were metal, capital goods and realty, while some profit taking was seen in IT and tech stocks.

The BSE Sensex is currently trading at 27821.24, up by 91.03 points or 0.33% after trading in a range of 27666.59 and 27839.82. There were 19 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.69%, while Small cap index gained 0.71%.

The top gaining sectoral indices on the BSE were Metal up by 1.81%, PSU up by 1.39%, Capital Goods up by 1.37%, Realty up by 1.05%, Oil & Gas up by 0.87%, while IT down by 0.48%, TECK down by 0.29%, FMCG down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.85%, Hindalco up by 2.19%, Bharti Airtel up by 1.72%, Cipla up by 1.56% and Larsen & Toubro up by 1.56%. On the flip side, Infosys down by 1.34%, GAIL India down by 1.15%, Hero MotoCorp down by 1.07%, Lupin down by 0.94% and Wipro down by 0.60% were the top losers.

Meanwhile, the signs of recovery in the equity markets are likely to be complemented by reports that the foreign direct investment (FDI) inflows into India surged 112% in April to $3.6 billion from $1.7 billion in the year-ago period and was up 71% over the inflows in the previous month. In absolute terms, April saw the second highest FDI inflows in the last one-and-a -half years, with only January 2015 posting a higher figure of $4.4 billion, 109% more than that in January 2014.

Singapore was the top investing country in April, followed by Mauritius, United States, the Netherlands and Germany, all of which together accounted for about 85% of the total inflows. Mumbai, Bengaluru, New Delhi, Chennai and Ahmedabad were the top five cities, accounting for about 90% of total inflows.

Sector wise, the automobile industry was the second highest FDI attractor after the computer software and hardware industry, with 18% increase to $0.65 billion. Construction and infrastructure sector saw 7% growth in FDI at $0.2 billion during the month. Manufacturing sector posted a 142% growth to $1.06 billion in FDI, while the inflows in the nonmanufacturing sector went up 93% to $2.05 billion.

Since the beginning of 2015, FDI has grown 43%, with inflows of about $13 billion. In 2014-15 India saw 27% growth in FDI inflows over the previous year.

The CNX Nifty is currently trading at 8382.00, up by 28.90 points or 0.35% after trading in a range of 8334.95 and 8384.40. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were PNB up by 4.24%, Bank Of Baroda up by 3.48%, Coal India up by 3.04%, Hindalco up by 2.19%, Bharti Airtel up by 1.60%. On the flip side, Infosys down by 1.42%, Hero MotoCorp down by 1.24%, GAIL India down by 1.20%, Zee Entertainment down by 0.81% and Lupin down by 0.79% were the top losers.

Asian markets were showing mixed trend, Straits Times gained 16.45 points or 0.5% to 3,331.58,
KOSPI Index was higher by 24.96 points or 1.21% to 2,080.12, Taiwan Weighted added 56.4 points or 0.6% to 9,398.17, Hang Seng increased by 93.51 points or 0.35% to 27,174.36 and Nikkei 225 surged by 319.04 points or 1.56% to 20,747.23.

On the other hand, Shanghai Composite declined by 109.2 points or 2.44% to 4,369.16, Jakarta Composite decreased 3.18 points or 0.06% to 4,956.07 and FTSE Bursa Malaysia KLCI was marginally down by 0.41 points or 0.02% to 1,732.35.