Benchmarks trade in fine fittle in early deals on Friday

After attempting good recovery in the previous session, Indian equity market have made a gap up opening and are now trading in fine fettle with the gains of over half a percent, on account of sustained buying in Realty, Consumer Durables, PSU stocks, which helped both Sensex and Nifty reclaim crucial 25,800 and 7,800 levels respectively. Investor sentiment turned positive after the statement of the group headed by Reserve Bank of India Governor Raghuram Rajan, which is one of the subcommittees of the Financial Stability and Development Council (FSDC) that there was no immediate cause of worry for India from global economic developments and financial volatility, though it has urged to be vigilant. However gains remained capped on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 121.19 crore on September 10, 2015, as per provisional data released by the stock exchanges. Investors are likely to remain cautious ahead of the announcement of key macroeconomic number, Index of industrial production (IIP) later during the day.

In scrip specific development, Elder Pharmaceuticals rallied 19% on the BSE on the back of heavy volumes on media reports that the company may sell its assets to clear debt.

On the global front, US markets ended higher as a jump in oil prices helped lift the overall market sentiment. The Asian markets were trading mixed with investors preferring to stay on the sidelines following the wild swings in the markets this week and on increased uncertainty about the outlook for U.S. interest rates ahead of the Federal Reserve's meeting next week.

Closer home, all the sectoral indices on BSE were trading in green led by Realty, Consumer Durables, PSU, Bankex and Auto. The market breadth on BSE was positive in the ratio of 1193: 312 while 44 scrips remained unchanged. 

The BSE Sensex is currently trading at 25806.91, up by 184.74 points or 0.72% after moving in a range of 25758.69 and 25875.96. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.04%, while Small cap index surged by 1.25%.

The top gaining sectoral indices on the BSE were Realty up by 1.38%, Consumer Durables up by 1.20%, PSU up by 1.09%, Bankex up by 1.02% and Auto up by 0.91%, while there no losers.

The top gainers on the Sensex were SBI up by 2.31%, Vedanta up by 2.26%, Axis Bank up by 1.85%, ONGC up by 1.35% and HDFC up by 1.33%. On the flip side, BHEL down by 0.99% and Hindustan Unilever down by 0.09% were the top losers.

Meanwhile, after government’s assurance and lots of confirming local and international voices that India won’t be much affected by the Chinese turmoil, a committee comprising top regulators and secretaries of the finance ministry concluded that there was no immediate cause for worry for India from global economic developments and financial volatility.

The group, headed by Reserve Bank of India Governor Raghuram Rajan, which is one of the subcommittees of the Financial Stability and Development Council (FSDC), the apex inter-regulatory body headed by the finance minister, met in Mumbai and said that India’s strong fundamentals provided it enough protection from global developments. The sub-committee of FSDC was of the view that our macro-economic fundamentals are quite strong and there is no immediate cause of worry due to the international economic situation

The panel reviewed domestic and international developments and their impact on the financial stability of the country. The Sub-Committee also took note of the functioning of the various Technical Groups under its ambit and also discussed issues related to inter-regulatory co-ordination for reporting under the Foreign Account Tax Compliance Act (FATCA), the Central KYC Registry and International Financial Services Centre (IFSC).

The sub-committee of the FSDC, which besides Rajan, was attended by Finance Secretary Ratan P Watal, Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chib Duggal and four Deputy Governors of RBI, said that the government and regulators will take steps to strengthen India’s macro- economic stability as well as to capitalise on the current global uncertainties.

The CNX Nifty is currently trading at 7842.95, up by 54.85 points or 0.70% after trading in a range of 7830.25 and 7864.85. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were SBI up by 2.33%, Vedanta up by 2.31%, PNB up by 1.87%, Axis Bank up by 1.84% and Bank Of Baroda up by 1.59%. On the flip side, BHEL down by 1.06%, Tata Power down by 0.57%, Hindustan Unilever down by 0.18%, Tech Mahindra down by 0.07% and Ambuja Cement down by 0.02% were the top losers.

Asian markets were trading mixed; Nikkei 225 increased 11.82 points or 0.06% to 18,311.44, Taiwan Weighted increased 17.94 points or 0.22% to 8,286.62, Jakarta Composite increased 31.13 points or 0.72% to 4,374.39 and Hang Seng increased 216.43 points or 1% to 21,778.93.

On the flip side, Straits Times decreased 40.15 points or 1.37% to 2,888.03, KOSPI Index decreased 17.02 points or 0.87% to 1,945.09, FTSE Bursa Malaysia KLCI decreased 7.94 points or 0.49% to 1,606.08 and Shanghai Composite decreased 2.35 points or 0.07% to 3,195.54.