Benchmarks manage to trade in green in noon deals

Indian equity benchmarks are managing to trade in green in noon deals with front line gauges trading above their crucial 25,700 (Sensex) and 7,800 (Nifty) levels as buying seen in select index heavyweights. Some support came with 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 as market participants remained cautious ahead of the Index of Industrial Production (IIP) data for the month of July, which will be revealed later in the day.

On the global front, European counters have made a positive start, CAC, DAX and FTSE were trading in green in early deals. However, Asian markets were trading mixed at this point of time with some of the indices trading lower by around half a percent, paring first weekly advance since July. Japanese market too was trading lower with the nation struggling to gather momentum after a contraction last quarter. Back home, rally in banking shares aided the sentiment on the expectations that the consumer inflation for the month of August has cooled off further, thus raising hopes of a rate-cut by the central bank. Auto stocks too remained on buyers’ radar after Society of Indian Automobile Manufacturers (Siam) said sales of domestic cars in August grew 6% over the same month last year. The broader indices too were trading in green, while the market breadth on the BSE was positive; there were 1,544 shares on the gaining side against 799 shares on the losing side while 102 shares remain unchanged.

The BSE Sensex is currently trading at 25718.65, up by 96.48 points or 0.38% after trading in a range of 25660.07 and 25875.96. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.49%, while Small cap index up by 0.82%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.85%, FMCG up by 0.78%, Realty up by 0.68%, PSU up by 0.58% and IT up by 0.47%, while Capital Goods down by 0.29% and Metal down by 0.12% were the only losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.67%, Hindalco up by 1.63%, HDFC up by 1.52%, ONGC up by 1.50% and Wipro up by 1.18%. On the flip side, BHEL down by 1.94%, Tata Steel down by 1.66%, GAIL India down by 1.63%, Tata Motors down by 0.88% and Reliance Industries down by 0.72% were the top losers.

Meanwhile, Foreign Investment Promotion Board (FIPB) will be taking 25 Foreign Direct Investment (FDI) proposals, in its 224th meeting which will be held on September 22; under the chairmanship of Secretary (Economic Affairs).The proposal includes those of Aditya Birla Nuvo, Cipla, Sun Pharma Advanced Research and HDFC Capital Advisors.  Among others, the board in its meeting later this month will also take up FDI proposals of Strides Acrolab Ltd, Multi Screen Media, IVF Trustee Company, Sharekhan, International Trade and Exhibitions India, Blue Star Infotech and Gulf Packaging Machines.

Last month, based on the recommendation of FIPB Government had approved 16 FDI proposals amounting Rs 1,152.53 crore approximately, including that of Edelweiss Tokio Life Insurance, Encore Asset Reconstruction Company and News Laundry Media.

According to the data of Department of Industrial Policy and Promotion (DIPP), during 2014-15 fiscal, FDI grew 27 percent year-on- year to $30.93 billion compared to that of $24.29 billion in 2013-14 fiscal year. In the previous financial year, FIPB had received 350 proposals and in 11 meetings, cleared 241 of them.

The CNX Nifty is currently trading at 7817.70, up by 29.60 points or 0.38% after trading in a range of 7798.80 and 7864.85. There were 34 stocks advancing against 15 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were HDFC up by 1.74%, Power Grid up by 1.74%, Hindalco up by 1.70%, SBI up by 1.65% and Bank Of Baroda up by 1.54%. On the flip side, Cairn India down by 2.18%, BHEL down by 2.14%, Tata Power down by 2.05%, Tata Steel down by 1.75% and GAIL India down by 1.71% were the top losers.

Asian markets were trading mixed; Shanghai Composite rose 0.11 points to 3,198.00, Jakarta Composite increased 32.58 points or 0.75% to 4,375.84, Taiwan Weighted gained 37.14 points or 0.45% to 8,305.82 and Hang Seng was up by 140.62 points or 0.65% to 21,703.1.

On the flip side, Straits Times decreased 40.15 points or 1.37% to 2,888.03, Nikkei 225 slipped 35.4 points or 0.19% to 18,264.22, KOSPI Index dropped 20.74 points or 1.06% to 1,941.37 and FTSE Bursa Malaysia KLCI was down by 7.22 points or 0.45% to 1,606.80.

European Markets were trading in green; Germany’s DAX gained 0.19%, France’s CAC jumped 0.44% and UK’s FTSE was up by 0.19%.