Benchmarks trade in tight-band in noon deals

Choppiness continued on Dalal-Street with frontline gauges trading in tight-band in afternoon deals, keeping its head above water. Investors remain wary ahead of the Greece’s bailout expiry due today, when the cash-strapped nation is unlikely to make a 1.6 billion euro ($1.8 billion) repayment to the International Monetary Fund (IMF). Some support came with report that US embassy stated 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. Appreciation in indian rupee too aided the sentiments. The rupee has snapped 5-day losing streak and is trading at 63.76 against the US dollar up by 8 paise on fresh selling of American currency by exporters.

On the global front, European markets have made a sluggish start as Greece lurched towards defaulting on a looming debt payment, raising the likelihood of the cash-strapped nation’s exit from the euro zone. However, all the Asian equity indices were trading in green at this point of time, as a sharp rebound in the China’s Shanghai Composite has lifted the mood of the traders. Back home, on the sectoral front, consumer durables, healthcare and fast moving consumer goods witnessed the maximum gain in trade, while software, infrastructure and capital goods remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,508 shares on the gaining side against 845 shares on the losing side while 99 shares remain unchanged.

The BSE Sensex is currently trading at 27673.00, up by 27.85 points or 0.10% 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 1.04%, while Small cap index up by 0.80%.

The gaining sectoral indices on the BSE were Consumer Durables up by 2.22%, Healthcare up by 1.51%, FMCG up by 1.48%, Metal up by 1.10% and PSU up by 0.44%, while IT down by 0.72%, Infrastructure down by 0.52%, Capital Goods down by 0.27%, Power down by 0.21% and TECK down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.36%, Lupin up by 2.29%, Sun Pharma up by 2.25%, Bharti Airtel up by 1.84% and Tata Steel up by 1.35%. On the flip side, GAIL India down by 1.75%, NTPC down by 1.62%, TCS down by 1.18%, ICICI Bank down by 1.12% and Mahindra & Mahindra down by 1.02% were the top losers.

Meanwhile, Government wary of the EU crisis and its impact on the country is likely to get some solace with a top official at US embassy stating 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. He added, “The number is growing and we expect this number to keep growing. Indian companies have also been making large acquisitions in the recent past.”

Paul Frost, commercial attaché at US Embassy said that India is the fourth fastest growing source of FDI into the United States and the total stock of FDI from India to the United States is $11 billion with Indian firms employing around 44,000 American workers and exporting more than $ 2 billion worth of goods from America.

He said sectors like aerospace, textiles, IT and life sciences have been of interest to Indian investors. From October 26, US will organise a national aerospace FDI exposition in Los Angeles for the first time to attract investment from foreign countries in the sector. He added that this exposition would be of interest to those also in the supply chain like those who manufacture seats for aeroplanes. Further, under the Select USA program to promote investment in the United States, the country will organise roadshows in Delhi, Mumbai and Chennai in October.

The CNX Nifty is currently trading at 8332.40, up by 14.00 points or 0.17% after trading in a range of 8298.95 and 8356.45. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 3.03%, Coal India up by 2.61%, Zee Entertainment up by 2.44%, Lupin up by 2.35% and Sun Pharma up by 2.30%. On the flip side, Tech Mahindra down by 1.94%, GAIL India down by 1.74%, NTPC down by 1.55%, TCS down by 1.38% and ICICI Bank down by 1.22% were the top losers.

All the Asian markets were trading in green; KOSPI Index increased 13.71 points or 0.67% to 2,074.20, FTSE Bursa Malaysia KLCI gained 13.96 points or 0.83% to 1,705.88, Jakarta Composite rose 37.23 points or 0.76% to 4,919.81, Straits Times soared 42.31 points or 1.29% to 3,322.49, Taiwan Weighted surged 86.92 points or 0.94% to 9,323.02, Nikkei 225 advanced 125.78 points or 0.63% to 20,235.73, Shanghai Composite added 206.66 points or 5.1% to 4,259.70 and Hang Seng was up by 342.71 points or 1.32% to 26,309.69.

The European markets were trading in red; Germany’s DAX declined 0.25%, France’s CAC shed 0.42% and UK’s FTSE 100 was down by 0.42%.