Benchmarks continue firm trade; Nifty holds 8,550 mark

Indian equity markets continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters. The sentiments were on up-beat mood after India’s trade deficit narrowed to 10.8 billion in June as compared to 11.7 billion in same month previous year. The trade deficit for April-June, 2015-16 was estimated at $ 32225.66 million which was lower than the deficit of $33083.93 million during April-June, 2014-15. Traders were seen piling position in Bankex, Oil & Gas and Power sector stocks. In scrip specific development, Pipavav Defence and Offshore Engineering Company was trading in green on media reports that the Russian government has chosen the company for a ‘Make in India’ naval frigate.

On the global front, the Asian markets were trading mostly in green, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,550 and 28,300 levels respectively. The market breadth on BSE was positive in the ratio of 1550:1111 while 128 scrips remained unchanged.

The BSE Sensex is currently trading at 28390.60, up by 192.31 points or 0.68% after trading in a range of 28245.81 and 28413.17. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.30%, while Small cap index up by 0.79%.

The gaining sectoral indices on the BSE were Bankex up by 1.78%, Oil & Gas up by 1.18%, Power up by 0.97%, PSU up by 0.89% and INFRA up by 0.75%.

The top gainers on the Sensex were Axis Bank up by 4.52%, HDFC up by 1.66%, Reliance Industries up by 1.44%, HDFC Bank up by 1.24% and NTPC up by 1.20%.

On the flip side, Vedanta down by 1.03%, Mahindra & Mahindra down by 0.99%, Wipro down by 0.60%, Larsen & Toubro down by 0.37% and GAIL India down by 0.23% were the top losers.

Meanwhile, the Union Cabinet is expected to clear the proposal to bring composite cap on all kinds of foreign investments, including FDI, foreign institutional investors (FII) and other instruments in various sectors, which was announced by Finance Minister in the budget of the current fiscal. This simplification is aimed at promoting ease of doing business in India. The composite foreign investment caps will encompass all types of foreign investments. These will include foreign portfolio investment, NRI investment and depository receipts, foreign currency convertible bonds and fully and mandatorily convertible preference shares or debentures.This move would help in removing ambiguity on application of sectoral caps, conditions and approval requirements in different sectors and bring simplification in the foreign investment policy. 

The Commerce and Industry Ministry  has already  proposed a composite foreign investment cap (FDI + FPI (FII, QFI) + NRI + FVCI) in sectors including agriculture, tea, mining, broadcasting, media, airports, retail (single brand and multi-brand), e-commerce, asset reconstruction companies, banking, commodity exchanges and insurance.

Presently, there are almost 12-13 sectors having composite cap which includes private sector banking, airlines, insurance defence and telecom. In future composite cap will provide benefit for sectors such as power and commodity exchanges, credit information companies and market infrastructure companies. While this proposal will have the biggest impact on the sectors where Foreign Investment Promotion Board nod is required for investment.

The CNX Nifty is currently trading at 8591.95, up by 68.15 points or 0.80% after trading in a range of 8542.90 and 8598.25. There were 35 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.63%, Kotak Mahindra Bank up by 3.87%, Yes Bank up by 3.64%, Tech Mahindra up by 2.93% and BPCL up by 2.20%.

On the flip side, Vedanta down by 1.17%, Mahindra & Mahindra down by 1.07%, Ambuja Cement down by 0.96%, NMDC down by 0.96% and Ultratech Cement down by 0.95% were the top losers.

The Asian markets were trading mostly in green; Straits Times increased 13.57 points or 0.41% to 3,352.43, KOSPI Index increased 14.98 points or 0.72% to 2,087.89, Shanghai Composite increased 17.47 points or 0.46% to 3,823.18, Hang Seng increased 107.02 points or 0.43% to 25,162.78 and Nikkei 225 increased 136.79 points or 0.67% to 20,600.12.

On the other hand, Taiwan Weighted decreased 11.99 points or 0.13% to 9,042.21 and FTSE Bursa Malaysia KLCI decreased 0.53 points or 0.03% to 1,726.73.

Indonesia Stock Exchange is closed today on account of ‘National Leave’ holiday.

The European markets were trading in green; UK’s FTSE 100 increased 34.33 points or 0.51% to 6,788.08, France’s CAC increased 60.38 points or 1.2% to 5,107.62 and Germany’s DAX increased 145.51 points or 1.26% to 11,685.17.