Benchmarks continue firm trade in late afternoon session

Indian equity markets continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters and taking cues from Asian counterparts. The sentiments got some support after a top official at US embassy stated that India is one of the fastest growing FDI sources for the United States. Investors however maintained a cautious approach ahead of the Greece’s bailout expiry due today, where the cash-strapped nation is unlikely to make a 1.6 billion euro ($1.8 billion) repayment to the International Monetary Fund (IMF). Traders were seen piling position in Consumer Durables, FMCG and Metal stocks while selling was witnessed in IT, Infra and Capital Goods stocks. In scrip specific development, Voltas was trading in red after a foreign brokerage firm downgraded the company with a reduced price target. Nestle India which is battling a ban on sale of its 2-minute Maggi noodles in India, was trading firm after the Bombay High Court allowed the company to export the popular snack.

On the global front, the Asian markets were trading in green, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,300 and 27,600 levels respectively. The market breadth on BSE was positive in the ratio of 1576:932 while 118 scrips remained unchanged.

The BSE Sensex is currently trading at 27656.03, up by 10.88 points or 0.04% 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 1.08%, while Small cap index up by 0.81%.

The gaining sectoral indices on the BSE were Consumer Durables up by 2.01%, FMCG up by 1.72%, Metal up by 1.10%, Realty up by 0.52% and PSU up by 0.50% while, IT down by 0.70%, Infra down by 0.55%, Capital Goods down by 0.29%, Bankex down by 0.27% and TECK down by 0.20% were the losing indices on BSE.

The top gainers on the Sensex were Lupin up by 2.86%, Coal India up by 2.61%, Sun Pharma up by 2.60%, Hindustan Unilever up by 1.93% and Bharti Airtel up by 1.45%.

On the flip side, ICICI Bank down by 1.40%, TCS down by 1.39%, GAIL India down by 1.38%, Hero MotoCorp down by 1.14% and Axis Bank down by 1.09% 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 8327.45, up by 9.05 points or 0.11% after trading in a range of 8298.95 and 8356.45. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.93%, Lupin up by 2.88%, Coal India up by 2.75%, Zee Entertainment up by 2.58% and Sun Pharma up by 2.57%.

On the flip side, HCL Tech. down by 1.66%, ICICI Bank down by 1.57%, GAIL India down by 1.52%, TCS down by 1.44% and Axis Bank down by 1.29% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 13.71 points or 0.67% to 2,074.20, FTSE Bursa Malaysia KLCI increased 15.23 points or 0.9% to 1,707.15, Jakarta Composite increased 39.45 points or 0.81% to 4,922.03, Straits Times increased 40.9 points or 1.25% to 3,321.08, Taiwan Weighted increased 86.92 points or 0.94% to 9,323.02, Nikkei 225 increased 125.78 points or 0.63% to 20,235.73, Shanghai Composite increased 224.19 points or 5.53% to 4,277.22 and Hang Seng increased 283.05 points or 1.09% to 26,250.03.

The European markets were trading in red; Germany’s DAX decreased 121.16 points or 1.09% to 10,962.04, France’s CAC decreased 59.39 points or 1.22% to 4,810.43 and UK’s FTSE 100 decreased 66.45 points or 1% to 6,554.03.