Benchmarks trade higher led by Healthcare and Realty

Extending their previous session's recovery, Indian equity benchmarks have made positive start and are trading in the green in early deals on Wednesday, on the back of favorable macroeconomic data and positive cues from global markets. The growth in eight core sectors increased to 4.4% in May versus a decline of 0.4% in the month of April. The growth was recorded after two consecutive months of decline, thus indicating a recovery in the industrial output. Some support also came after India Meteorological Department (IMD) reported that in June, the country received around 189.5 millimetres of rain as against a normal of around 163.6 millimetres.  At present, Sensex and Nifty were trading above the crucial 27,850 and 8,350 levels respectively. The session also was fruitful for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.80-1.00%.

In scrip specific development, McNally Bharat Engineering was trading higher after the Williamson Magor Group made an open offer at a price of Rs 100 per share.

On the global front, the US markets ended higher as investors held out hope for deal to keep Greece in the euro. Asian markets were trading mostly in green while Shanghai Composite declined once again.

Back home traders were seen piling up position in Healthcare, Realty, Capital Goods, Consumer Durables and IT. The market breadth on BSE was positive in the ratio of 1270: 359 while 43 scrips remained unchanged.

The BSE Sensex is currently trading at 27887.31, up by 106.48 points or 0.38% after trading in a range of 27799.91 and 27902.78. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.85%, while Small cap index added 0.99%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.14%, Realty up by 1.07%, Capital Goods up by 1.06%, Consumer Durables up by 0.99%, IT up by 0.87%, while there were no losers.

The top gainers on the Sensex were Lupin up by 1.18%, Hindalco up by 1.12%, Larsen & Toubro up by 1.11%, Sun Pharma up by 1.02% and Cipla up by 1.01%. On the flip side, ITC down by 0.52%, Hero MotoCorp down by 0.47%, Mahindra & Mahindra down by 0.45%, NTPC down by 0.44% and GAIL India down by 0.27% were the top losers.

Meanwhile, government will be borrowing Rs 1.96 lakh crore in July- Sept quarter of the current FY 2015-16 from the market. On evaluating the cash position and in consultation with RBI, government has decided the amounts of the issuance of Treasury Bills for the July- Sept Quarter.

As per the borrowing calendar, out of Rs 1.96 lakh crore, Rs 1.19 lakh  crore would be raised via auction of 91 days Treasury Bills. While remaining Rs 39,000 crore and Rs 38,000 crore are expected to be raised via auctioning 182 days and 364 days Treasury Bills.

In the current fiscal, government plans to borrow Rs 6 lakh crore from the market, up from Rs 5.92 lakh crore in 2014-15. However, as per the budget documents, considering the repayments of past loans and interest, the net borrowing would be Rs 4.56 lakh crore in 2015-16.

In 2014-15, government beating its own financial target contained the fiscal deficit (gap between government's expenditure and revenue) at 3.99% of GDP at Rs 5.01 lakh crore.

The CNX Nifty is currently trading at 8395.85, up by 27.35 points or 0.33% after trading in a range of 8370.15 and 8404.65. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were HCL Tech. up by 1.47%, Hindalco up by 1.34%, Lupin up by 1.34%, Infosys up by 1.05% and Larsen & Toubro up by 1.05%. On the flip side, Wipro down by 0.80%, NMDC down by 0.80%, Indusind Bank down by 0.74%, Zee Entertainment down by 0.72% and ITC down by 0.65% were the top losers.

Asian markets were mostly trading in green; Jakarta Composite increased 19.56 points or 0.4% to 4,930.22, KOSPI Index increased 21.33 points or 1.03% to 2,095.53, Straits Times increased 23.05 points or 0.69% to 3,340.38, FTSE Bursa Malaysia KLCI increased 30.52 points or 1.79% to 1,737.16, Nikkei 225 increased 67.42 points or 0.33% to 20,303.15, Taiwan Weighted increased 72.58 points or 0.78% to 9,395.60, Hang Seng increased 283.05 points or 1.09% to 26,250.03.

On the flip side, Shanghai Composite decreased 17.09 points or 0.4% to 4,260.13.