Benchmarks continue to trade in green in late morning session

Markets were holding up their gains in late morning session with no signs of series volatility, though there was intermittent profit taking that was taking the benchmarks lower from their high points of the day but the Sensex seems to have found some support near 27700 levels and Nifty near the 8300 mark. Sentiments got a boost with NITI Aayog Vice Chairman, Arvind Panagariya’s statement that India’s growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass $3 trillion mark in less than five years. Some support also came 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 with the report that foreign institutional investors (FIIs) sold shares worth a net Rs 711 crore on June 29, 2015. Moreover, the investors remained concerned as Greece is likely to default on its debt repayment and may face exit from Eurozone as the deadline for repaying 1.6 billion euros to IMF ends today. Greek officials have said that they will not be paying 1.6 billion euros instalment due to IMF.

On global front, Asian stock markets bounced back Tuesday, recouping some of the previous day's sharp losses, but investors remained worried the crisis in Greece could spread to other financially weak countries. Back home, snapping its five-day falling spree, Indian rupee rose 8 paise to 63.76 against the US dollar in early trade on fresh selling of the American currency by exporters and banks amid a higher opening in the domestic equity market.

Back on street, stocks from Consumer Durables, FMCG and Metal counters were supporting the markets’ uptrend, while those from IT, Infrastructure and Power counters were adding to the underlying cautious undertone. In scrip specific development, shares of Marksans Pharma have surged after the company announced that it has acquired Time-Cap Laboratories, a US-based company through its subsidiary. Further, Deep Industries rose after the company signed a contract with the state-owned oil exploration & production company Oil and Natural Gas Corporation (ONGC).

The market breadth on BSE was positive, out of 2143 stocks traded, 1417 stocks advanced, while 645 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27703.33, up by 58.18 points or 0.21% after trading in a range of 27570.95 and 27762.95. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.99%, while Small cap index up by 0.79%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.71%, FMCG up by 1.14%, Metal up by 1.07%, PSU up by 0.62% and Realty up by 0.51%, while IT down by 0.35%, Infrastructure down by 0.06%, Power down by 0.02% and Auto down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.40%, Coal India up by 1.87%, Hindustan Unilever up by 1.76%, Bharti Airtel up by 1.74% and Lupin up by 1.36%. On the flip side, NTPC down by 1.05%, Wipro down by 0.99%, TCS down by 0.91%, Hero MotoCorp down by 0.83% and Tata Motors down by 0.72% were the top losers.

Meanwhile, NITI Aayog Vice Chairman, Arvind Panagariya has said that India’s growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass $3 trillion mark in less than five years. He said that “I will be greatly disappointed if we do not hit the 8 per cent mark in 2015-16. I expect the economy to hit $3 trillion within five years or less.”

Panagariya further stated that the world economy is large and our share in the world exports is still below 2%. So we have a huge scope for growth even in a sluggish world economy. As long as we continue on the reforms path and ensure that the rupee does not become unduly overvalued, we will be well positioned to chip away some of the 12% share that China currently enjoys in the world merchandise exports. He reasoned that wages in China have already risen enough that many manufacturers there are looking for new destinations with lower wages and India is well placed to be that destination.

The NITI Aayog’s Vice Chairman on role of NITI in pushing development agenda of the nation said that “It has a role to play in almost all dimensions. It must help drive the reform agenda at both the central and state levels while also helping formulate policies. Adding that NITI Aayog's two taskforces -on poverty elimination and modernisation of agriculture- are working in cooperation with parallel taskforces in the states, while the three sub-groups of Chief Ministers at work on the Centrally Sponsored Schemes, Swachch Bharat Mission and Skill Development are working under the auspices of the NITI Aayog.

The CNX Nifty is currently trading at 8340.90, up by 22.50 points or 0.27% after trading in a range of 8298.95 and 8356.45. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.70%, Sun Pharma up by 2.41%, Coal India up by 2.06%, Bharti Airtel up by 1.64% and Hindustan Unilever up by 1.57%. On the flip side, NTPC down by 1.05%, Wipro down by 1.02%, Power Grid down by 0.97%, TCS down by 0.96% and Axis Bank down by 0.84% were the top losers.

Asian markets were mostly trading in green; KOSPI Index was up by 0.46%, FTSE Bursa Malaysia KLCI up by 0.92%, Jakarta Composite up by 0.75%, Straits Times up by 1.28%, Taiwan Weighted up by 0.42%, Nikkei 225 up by 0.48% and Hang Seng was up by 1.21%. On the flip side, Shanghai Composite was down by 0.01%.