Benchmarks trade jubilantly in late afternoon session; Nifty reclaims 7,850 mark

Bouncing back from day's low, benchmark equity indices were trading firmly in green, with gains of over 0.80 percent, which took Sensex above the psychological 25,900 level and Nifty above its crucial 7,850 mark.  The broader market indices too have rebounded into the positive zone -Midcap and the Smallcap indices were up 1.55 percent and 0.41 percent, respectively. Sentiments got a boost with Finance Minister’s statement that the economy is in a revival phase and hint that it will clock a growth rate in excess of 8 per cent in 2015-16, after the total indirect tax collections during the first four months of the fiscal rose by 37 per cent. Besides, firm opening in European counters too supported the sentiments with CAC, DAX and FTSE trading in green with a gain of over one and a half percent in early deals. Some support also came with the Union Minister M Venkaiah Naidu’s statement that government may convene second part of the Monsoon Session to pass key legislations after talking to all the political parties. He also added that government is going to Parliament with an open mind and amendments in GST Bill, if any, can be approved on the floor of the House. However, investors were still concerned that foreign investors could pull out funds from emerging markets as China’s markets fell further. Foreign institutional investors were net sellers in equities to the tune of Rs 5,275 crore on August 25, 2015.

On the global front, most Asian markets except China and Japan were trading higher after the sharp drop in the previous session. Stocks in China continued to witness selling pressure as investors shunned riskier assets on concerns over sluggish economic growth. Back home, Indian rupee also trimmed early gains and was up 12 paise at 66.52 compared to the previous close on the back of positive trend in equities.

Back on street, stocks from Realty, Oil & Gas and Metal counters were supporting the markets’ uptrend, while those from IT and Teck counters was adding to the underlying cautious undertone. In scrip specific development, Shares of Welspun Corp have surged after the company has entered into a joint venture (JV) with Wasco Energy to set up a concrete weight coating (CWC) plant at Anjar, Gujarat. Furthermore, shares of DLF gained after the company raised Rs 375 crore through issue of non-convertible debentures.

The market breadth on BSE was negative, out of 2686 stocks traded, 1008 stocks advanced, while 1588 stocks declined on the BSE. 

The BSE Sensex is currently trading at 25963.81, up by 222.25 points or 0.86% after trading in a range of 25298.42 and 26124.83. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.55%, while Small cap index up by 0.41%.

The top gaining sectoral indices on the BSE were Realty up by 5.88%, Oil & Gas up by 3.53%, Metal up by 2.90%, PSU up by 2.33%, Bankex up by 2.06%, while IT down by 0.34% and TECK down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 5.17%, NTPC up by 5.00%, Tata Motors up by 4.81%, Tata Steel up by 4.12% and Coal India up by 3.94%. On the flip side, Wipro down by 1.33%, HDFC down by 1.31%, Maruti Suzuki down by 0.98%, Hero MotoCorp down by 0.98% and Bajaj Auto down by 0.85% were the top losers.

Meanwhile, Finance Minister Arun Jaitley has said that reviewing the crisis that has surrounded the global financial markets and triggered a record crash in Indian stocks while sending the rupee to a two-year low, Prime Minister Narendra Modi is of the view that if India maintains the growth, then it is possible to strengthen the country’s economy.  PM wants some steps taken to prepare the country to take advantage of the opportunity that the situation has presented and hold detailed consultations with stakeholders including state governments on what is to be done.

The fiscal deficit and inflation of the country are under control. India stands by the growth projection which was made at the beginning of the year where indirect taxation data actually supplements the idea of those projections. Total indirect tax collections in the first four months of the fiscal have risen 37% from a year earlier and adjusted for additional tax measures, revenues are up a healthy 14.6%, which the FM said was indicative of a pickup in manufacturing.

Fueling the recovery hopes the monsoon will boost the growth prospects by enhancing demand and increasing economic activity during the course of the fiscal. The government expects the economy to grow by more than 8% in the current fiscal, well above the 7% estimate of rating agency Moody's.

The CNX Nifty is currently trading at 7874.65, up by 65.65 points or 0.84% after trading in a range of 7667.25 and 7925.40. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.43%, Yes Bank up by 5.20%, NTPC up by 4.77%, Tata Steel up by 4.27% and BPCL up by 4.19%. On the flip side, Tata Power down by 5.54%, Power Grid down by 2.33%, HCL Tech down by 1.69%, HDFC down by 1.61% and Ambuja Cement down by 1.56% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI was up by 2%, KOSPI Index up by 0.92%, Straits Times up by 1.38%, Hang Seng up by 0.72%, Jakarta Composite up by 1.5% and Taiwan Weighted was up by 3.58%.  On the flip side, Nikkei 225 was down by 3.96% and Shanghai Composite was down by 7.63%.

European Markets were trading in green; Germany’s DAX gained 2.31%, France’s CAC surged 2.59% and UK’s FTSE was up by 2.1%.