Markets trade flat 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 trading flat with bit of positive bias on increasing buying by funds and retail investors in select stocks. The broader markets were doing better than benchmarks, with the midcap ands smallcap indices gaining 0.30% and 0.90% respectively. The market breadth was also strong, with 2 advances behind every one decline. The sentiments remained buoyant with the report that GST Bill winning majority support of the Rajya Sabha Select Committee, which has endorsed almost all the provisions, while also agreeing to demands for five-year compensation to states. Some support also came with India Ratings report that the Centre’s housing for all project is expected to give the economy a Rs 15-trillion boost over the next 7 years. Optimistic buying by participants in some bluechip companies ahead of quarterly earnings too supported the upside. However, investors remained cautious on the report that rainfall for the country as a whole for the monsoon season from June 1 to July 20, 2015 was 322.6 mm as against the normal rainfall of 348.0 mm, which was 7% below the long period average (LPA).

On global front, Asian stocks were a mixed on Thursday, as investors digested a flurry of economic data amid dampened sentiment due to a weaker finish on Wall Street overnight. However, the Japanese market was trading higher after country’s exports increased the most in five months in June, boosted by growth in automobile and electronic parts. Back home, Indian rupee weakened 7 paise to 63.65 against the US dollar in early trade, following gains in the American currency against major currencies globally.

Back on street, stocks from Consumer Durables, Oil & Gas and Realty counters were supporting the markets’ uptrend, while those from FMCG, Metal and Banking counters was adding to the underlying cautious undertone. In scrip specific development, Shares of SKS Microfinance have surged after the company reported 24% year-on-year (yoy) increase in net profit at Rs 61 crore for the quarter ended June 30, 2015 (Q1). On the flip side, shares of Container Corporation of India have declined after the company reported 20.99% fall in its net profit at Rs 206.90 crore for first quarter ended June 30, 2015 as compared to Rs 261.88 crore for the same quarter in the previous year.

The market breadth on BSE was positive, out of 2290 stocks traded, 1481 stocks advanced, while 710 stocks declined on the BSE. 

The BSE Sensex is currently trading at 28524.08, up by 19.15 points or 0.07% after trading in a range of 28456.77 and 28578.33. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.89%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.33%, Oil & Gas up by 1.16%, Realty up by 0.97%, IT up by 0.59%, Infrastructure up by 0.40%, while FMCG down by 0.26%, Metal down by 0.14%, Bankex down by 0.13%, Power down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 2.43%, GAIL India up by 1.23%, Maruti Suzuki up by 1.17%, Infosys up by 0.97% and Coal India up by 0.94%. On the flip side, Tata Steel down by 2.87%, Hindustan Unilever down by 2.00%, ONGC down by 1.19%, Tata Motors down by 0.81% and Bharti Airtel down by 0.79% were the top losers.

Meanwhile, giving a sense of relief to the government, foreign direct investment (FDI) in the country rose to four-month high of $3.85 billion in May 2015, up by 7 percent compared to $3.60 billion in the same month of last year. Most importantly, the FDI figures for May 2015 are the highest since January 2015, when foreign equity investment was at $ 4.48 billion.

In the current financial year during April-May period, FDI in the country grew by 40 percent to $7.45 billion as compared to $ 5.30 billion in the same period last year. During financial year 2014-15, foreign fund inflows grew by 27 percent year-on-year, to $ 30.93 billion as against $24.29 billion in 2013-14.

Sectorally, computer software and hardware received the maximum FDI of $2.27 billion during the two months, followed by automobile $1 billion, trading $664 million, services $488 million and power $155 million.

Region wise, the country received the maximum FDI from Singapore of $2.9 billion, followed by Mauritius $1.68 billion, the Netherlands $587 million and the US $552 million.

After 2008, for the first time, India stood as top 10 FDI recipients during 2014. India, however, is the only BRIC country that hasn’t yet crossed the $50 billion-a-year FDI mark. An UN report has stated that the upward trend in FDI is likely to continue against the backdrop of a push to manufacturing as part of the 'Make in India' initiative.

The CNX Nifty is currently trading at 8639.50, up by 6.00 points or 0.07% after trading in a range of 8620.65 and 8654.75. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 6.44%, Dr. Reddys Lab up by 2.49%, BPCL up by 1.39%, Maruti Suzuki up by 1.19% and GAIL India up by 1.02%. On the flip side, Tata Steel down by 2.92%, Hindustan Unilever down by 2.24%, Zee Entertainment down by 1.80%, ONGC down by 1.28% and Grasim Industries down by 0.97% were the top losers.

Asian markets were trading mixed; Straits Times was up by 0.4%, Shanghai Composite up by 1.79%, Nikkei 225 up by 0.4% and Hang Seng was up by 0.67%. On the flip side, Taiwan Weighted was down by 1.3%, KOSPI Index down by 0.12%, FTSE Bursa Malaysia KLCI down by 0.02% and Jakarta Composite down by 0.03%.