Markets trade with positive bias in range-bound session

In the extremely range-bound session of trade, Indian equity benchmarks altering between positive and negative territory, were now trading with positive bias on value buying by participants in select blue chip stocks amid rebound in Chinese stocks. Sentiment on the street improved with global rating agency Standard & Poor's statement that the confidence level in India continues to grow amid indications of slower growth ahead for the Asia-Pacific region. Some support also came with Paris-based think tank OECD’s statement that India is seeing ‘stable growth momentum’ even as economic activities are expected to slow down in China, the US and many other major economies. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 354.32 crore on July 08, 2015. Besides, investors would remain cautious ahead of the corporate results season, which will be starting from today. The first quarter corporate results season will kick off with TCS announcing its Q1 results. Also, the government is scheduled to announce Index of Industrial Production (IIP) data on Friday. The progress in monsoons would also be another factor to watch out for.

On global front, Asian markets were trading mined as China's main index seesawed after a prolonged sell-off while Hong Kong's benchmark rebounded strongly. Further, China's securities regulator took the drastic step late on Wednesday of ordering shareholders with stakes of more than 5 percent from selling shares for the next six months, in a bid to halt a plunge in stock prices. Back home, after falling for two straight days, the rupee strengthened by 7 paise to 63.53 against the dollar in early trade on fresh selling of the American currency by exporters.

Back on street, stocks from Capital Goods, Consumer Durables and Power counters were supporting the markets’ uptrend, while those from IT, Oil & Gas and Teck counters was adding to the underlying cautious undertone. In scrip specific development, Shares of 8K Miles Software Services surged after the company reported more-than-double jump in consolidated net profit at Rs 7.22 crore for the quarter ended June 2015. Furthermore, Eros International Media rose on reports that the company is in advanced talks to sell a stake in its Eros Now unit to Singapore-based Fullerton Fund Management Co.

The market breadth on BSE was positive, out of 2258 stocks traded, 1496 stocks advanced, while 681 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27730.10, up by 42.38 points or 0.15% after trading in a range of 27625.81 and 27798.13. 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 0.34%, while Small cap index up by 0.52%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.64%, Consumer Durables up by 1.02%, Power up by 0.94%, Realty up by 0.54% and Metal up by 0.48%, while IT down by 1.05%, Oil & Gas down by 0.60%, TECK down by 0.49% and Auto down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.99%, BHEL up by 2.76%, Larsen & Toubro up by 1.88%, Hero MotoCorp up by 1.46% and Hindalco up by 1.43%. On the flip side, TCS down by 1.84%, Tata Motors down by 1.58%, Vedanta down by 1.51%, Bajaj Auto down by 1.35% and Infosys down by 1.02% were the top losers.

Meanwhile, Global rating agency Standard & Poor’s (S&P) latest report - 'Asia-Pacific Could Be Entering A Steady State Of Slower Growth', is likely to boost the sapping morale of the investors and the government, as it has said that the confidence level in India continues to grow amid indications of slower growth ahead for the Asia-Pacific region.

S&P stated that 'In India, confidence continues to rise despite concerns about investment quality. It added that our forecasts of 7.4 percent growth for 2015 and 8.2 percent for 2016 are the highest in the region.”

It was highlighted that China's property market correction continues to be the region's main risk, with growth forecasts for China in 2015 and 2016 remaining unchanged at 6.8 per cent and 6.6 per cent respectively, with the risks still slanted toward the downside. The report also said that the incipient recovery in the US, particularly for durable goods consumption, has yet to lead to a sustained export bounce in Asia-Pacific.

The report however stated that the Asia-Pacific growth story is not all gloom and doom and the pace of activity is picking up in Japan, the agency said it has raised its forecasts to 0.9 per cent for 2015 and 1.3 per cent for 2016.

The CNX Nifty is currently trading at 8371.70, up by 8.65 points or 0.10% after trading in a range of 8343.55 and 8400.30. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.81%, BHEL up by 2.56%, Larsen & Toubro up by 1.80%, Hero MotoCorp up by 1.54% and Bank of Baroda up by 1.52%. On the flip side, BPCL down by 2.14%, TCS down by 1.81%, Tata Motors down by 1.64%, HCL Tech. down by 1.61% and Vedanta down by 1.44% were the top losers.

Asian markets were trading mixed; Nikkei 225 was down by 0.72%, Taiwan Weighted down by 0.52%, Jakarta Composite down by 1.13% and Straits Times down by 0.48%. On the flip side, FTSE Bursa Malaysia KLCI was up by 0.35%, KOSPI Index up by 0.19%, Shanghai Composite increased up by 3.18% and Hang Seng up by 4.06%.