Markets surge to high points of the day on across the board buying

Indian markets consistently moving upwards are trading at the days’ high points in the early noon session of trade, with hardly any signs of profit taking or volatility on the F&O series expiry day. Traders after the recent series of fall, seem to be busy in short covering and value buying. Not only blue-chips but the broader markets too are witnessing strong buying interest, supported by the good going in the regional peers. The foreign investors too were in jubilant mood, as the Union Cabinet has given approval for the proposal permitting foreign entities to invest in Alternative Investment Funds (AIFs) set up under SEBI, so as to attract more overseas money in the country. The sentiments on the street has also got the encouragement with the Cabinet approval of amendments to the goods and services tax (GST) Bill to compensate states for revenue loss for five years once the new nationwide uniform tax regime kicks in. Back on street, Nifty was trading near the crucial psychological level of 8450, while Sensex was comfortably sailing above the 27800 levels. The broader markets too were going neck-in-neck to the major bourses, posting gains of over a percent. On the sectoral front, the beaten down realty sector was witnessing good buying and leading the sectoral pack on the BSE with gains of over 3%, followed by FMCG, power, auto and banks.

Apart from the capital markets there was buzz from the primary markets too, as the IPO of Syngene International was over-subscribed 32.03 times on the last day of the offer as both retail and institutional investors bid aggressively for the shares.  

The BSE Sensex is currently trading at 27836.14, up by 272.71 points or 0.99% after trading in a range of 27649.97 and 27854.46. There were 25 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.21%, while Small cap index gained 1.02%.

The gaining sectoral indices on the BSE were Realty up by 3.14%, FMCG up by 1.53%, Power up by 1.42%, Auto up by 1.24%, INFRA up by 1.10% while, Metal down by 0.03%, Consumer Durables down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 4.26%, HDFC up by 2.92%, Hindustan Unilever up by 2.86%, NTPC up by 2.18% and Hero MotoCorp up by 2.05%. On the flip side, Sun Pharma Inds. down by 1.55%, TCS down by 0.30%, Coal India down by 0.20% and Tata Steel down by 0.02% were the top losers.

Meanwhile, Union Cabinet has given approval for the proposal permitting foreign entities to invest in Alternative Investment Funds (AIFs) set up under SEBI, so as to attract overseas money in the country in large amount. This approval is in compliance with the FDI policy and RBI norms and will help in making the availability of funds to start ups, early stage ventures, SMEs which are mostly considered as high risk investment and have an uncertain return. Further, it would scale back the strain on the banking system to which the infrastructure sector appears for funding needs.

The decision would enable Foreign Investment in AIFs that are established as registered trust, structured as incorporated company or limited liability partnership (LLP). It would also be enabled in the FDI policy and FEMA regulations including foreign investment by way of ''units '' of AIFs set up as trust in terms of SEBI (AIFs) Regulations 2012.

AIFs which include venture Capital Fund, hedge funds, private equity funds, commodity funds, Debt Funds, infrastructure funds, are regulated by SEBI. AIFs are funds incorporated in India for the purpose of pooling in capital from Indian investors. These funds have been consistently gaining traction since coming into play in late 2012 and as on March 31, 2015 there were 135 AIFs registered with Sebi. Collectively, these AIFs had raised investment commitments totaling over Rs 22,600 crore till that date, while over Rs 9,500 crore worth funds have already been raised by them. Their total investment stood at Rs 7,350 crore.

The CNX Nifty is currently trading at 8452.85, up by 77.80 points or 0.93% after trading in a range of 8408.90 and 8458.90. There were 41 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Bank Of Baroda up by 3.98%, Cipla up by 3.94%, Hindustan Unilever up by 2.98%, HDFC up by 2.79% and Asian Paints up by 2.20%. On the flip side, NMDC down by 2.11%, Sun Pharma Inds. down by 1.64%, Kotak Mahindra Bank down by 0.77%, Coal India down by 0.32% and TCS down by 0.28% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI was up by 5.74 points or 0.34% to 1,704.73, Jakarta Composite gained 10.27 points or 0.22% to 4,731.39, Hang Seng was up by 20.14 points or 0.08% to 24,639.59, Shanghai Composite added 21.07 points or 0.56% to 3,810.24, Taiwan Weighted was up by 88.01 points or 1.03% to 8,651.49 and Nikkei 225 surged 219.92 points or 1.08% to 20,522.83.

On the other hand, Straits Times was down by 28.36 points or 0.86% to 3,255.64 and KOSPI Index lost 18.59 points or 0.91% to 2,019.03.