Benchmarks trade slightly in the green in early deals

Indian equity benchmarks are trading slightly in the green in early deals on Tuesday taking positive cues from the regional markets. At present, Sensex and Nifty were trading above the crucial 27,650 and 8,300 levels respectively. The session was turning good for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.50-0.90%. Investor's sentiment was up-beat with a report that India is one of the fastest growing FDI sources for the United States with investors from the country more interested in US' aerospace and textile sectors, among others. However, gains remained capped as investors continued to fret about the uncertainty in Greece after the country closed its banks for the week and imposed cap on cash withdrawals. In scrip specific development, Brigade Enterprises was trading higher after the company’s board approved the acquisition of land from Kansai Nerolac Paints for Rs 550 crore.

On the global front, the US markets ended lower after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone. Asian markets were trading mostly in green, post the carnage witnessed in the previous session. 

Back home traders were seen piling up positions in FMCG, Metal, Healthcare, Realty and Consumer Durables, while selling was witnessed in IT and Bankex. The market breadth on BSE was positive in the ratio of 1178: 552, while 54 scrips remained unchanged.

The BSE Sensex is currently trading at 27690.40, up by 45.25 points or 0.16% after trading in a range of 27570.95 and 27762.95. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.90%, while Small cap index gained 0.58%.

The top gaining sectoral indices on the BSE were FMCG up by 1.02%, Metal up by 0.87%, Healthcare  up by 0.85% Realty up by 0.79% and Consumer Durables up by 0.42%, while IT down by 0.28%, Bankex down by 0.12% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 1.93%, Coal India up by 1.75%, Hindustan Unilever up by 1.33%, BHEL up by 1.29% and HDFC up by 0.95%. On the flip side, NTPC down by 1.26%, Dr. Reddys Lab down by 1.01%, Wipro down by 0.91%, Tata Motors down by 0.80% and TCS down by 0.75% were the top losers.

Meanwhile, the Bank for International Settlements (BIS) has raised the red flag over interest rates remaining “extraordinarily low” and said that easy monetary regimes are resulting in a build-up of financial vulnerabilities. In its annual report, BIS said globally, interest rates have been extraordinarily low for an exceptionally long time, in nominal and inflation-adjusted terms, against any benchmark.

The global banking regulators' body has said that globally, interest rates have been extraordinarily low for an exceptionally long time, in nominal and inflation-adjusted terms, against any benchmark. 'Such low rates are the most remarkable symptom of a broader malaise in the global economy: the economic expansion is unbalanced, debt burden and financial risks are still too high, productivity growth too low, and the room for maneuvering in macroeconomic policy too limited.

BIS has stated that this malaise also reflects the failure to come to grips with financial booms and busts that leave deep and enduring economic scars. It added that “The international monetary and financial system has spread easy monetary and financial conditions in the core economies to other economies through exchange rate and capital flow pressures, furthering the build-up of financial vulnerabilities.'

BIS also said that there should be increased reliance on structural policies rather than demand management policies, adding that such an approach would help “abandon the debt-fuelled growth model that has acted as a political and social substitute for productivity-enhancing reforms.” The BIS report, for April 2014 to March 2015, said central banks outside the major advanced economies were left to factor these very accommodative, but increasingly divergent, monetary policies into their own policy decisions.

The CNX Nifty is currently trading at 8324.10, up by 5.70 points or 0.07% after trading in a range of 8298.95 and 8356.45. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.32%, Coal India up by 1.82%, Sun Pharma up by 1.70%, Hindustan Unilever up by 1.22% and BHEL up by 1.17%. On the flip side, NTPC down by 1.37%, Wipro down by 1.18%, HCL Tech. down by 1.15%, Dr. Reddys Lab down by 1.00% and Hindalco down by 0.97% were the top losers.

Asian markets were mostly trading in green; KOSPI Index increased 7.26 points or 0.35% to 2,067.75, FTSE Bursa Malaysia KLCI increased 13.12 points or 0.78% to 1,705.04, Jakarta Composite increased 36.12 points or 0.74% to 4,918.70, Straits Times increased 43.5 points or 1.33% to 3,323.68, Taiwan Weighted increased 44.54 points or 0.48% to 9,280.64, Nikkei 225 increased 87.69 points or 0.44% to 20,197.64 and Hang Seng increased 258.14 points or 0.99% to 26,225.12.

On the flip side, Shanghai Composite decreased 0.56 points or 0.01% to 4,052.47.