Markets retain early gains trading in a range

Markets holding early gains continue to trade in green, there is no sign of any profit taking till the early noon session with the sensex and Nifty trading above crucial 25800 and 7850 levels, respectively. Sentiment got some support with the government's decision to consider foreign investments in partly paid shares and warrants eligible instruments under the foreign direct investment policy, bringing greater flexibility in their use to raise capital. On the global front, Asian markets were trading mostly in green, although in thin volume, and short-term US bond yields held near 4 1/2-year highs as investors braced for the possibility of the first interest rate hike in the United States in almost a decade. Back home, in scrip specific development, share of Suven Life Sciences is trading  up by over 4% after the company secured two product patents from Canada and one product patent from China corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases. Sun Pharma is trading up by over 2% as the company has bid to acquire US eye care company InSite Vision to expand its basket of specialty products and boost sales.

The BSE Sensex is currently trading at 25866.42, up by 160.49 points or 0.62% after trading in a range of 25816.50 and 25921.90. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.14%, while Small cap index lost 0.20%.

The top gaining sectoral indices on the BSE were Bankex up by 0.66%, TECK up by 0.64%, IT up by 0.51%, Auto up by 0.33% and Metal up by 0.23%, while Consumer Durables down by 1.53%, Capital Goods down by 0.58%, Realty down by 0.38%, Power down by 0.29% and INFRA down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 2.32%, Bharti Airtel up by 2.17%, Sun Pharma Inds. up by 2.08%, Bajaj Auto up by 1.95% and Axis Bank up by 1.71%. On the flip side, BHEL down by 1.39%, Larsen & Toubro down by 0.77%, NTPC down by 0.75%, Hindustan Unilever down by 0.69% and Hindalco down by 0.46% were the top losers.

Meanwhile, government has clarified that the Foreign Direct Investment (FDI) norms for real estate will not be applicable to multinational companies leasing out their assets to group entities. The move will in future help the group companies to expand their business and in optimum utilization of their assets.

The Department of Industrial Policy and Promotion (DIPP) has stated that the facility of sharing agreements within two group companies through leasing/sub-leasing will not be treated as real estate business within the provisions of the Consolidated FDI policy circular of 2015, provided the arrangements are at acting in their own self interest price in accordance with relevant provisions of Income Tax Act 1961 and annual lease rent earned by the lessor company does not exceed 5 per cent of its total revenue. At present FDI is prohibited in real estate business covering leasing and sub leasing.

Besides, government has relaxed FDI norms for medical devices, defence and construction activities sectors. Further, DIPP notified that, government has also permitted foreign investments through partly paid shares and warrants as eligible capital instruments for the purposes of FDI policy, in a move to facilitate FDI in the country, after reviewing the provisions of the extant FDI policy. In order to boost FDI, government is taking various steps. In the first quarter of the current fiscal, FDI grew by 31% to $9.50 billion.

The CNX Nifty is currently trading at 7870.20, up by 41.10 points or 0.52% after trading in a range of 7853.30 and 7888.60. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 2.56%, Bharti Airtel up by 2.24%, Sun Pharma up by 2.18%, Bajaj Auto up by 1.99% and Yes Bank up by 1.98%. On the flip side, BHEL down by 1.51%, NTPC down by 1.10%, Cairn India down by 1.03%, Larsen & Toubro down by 0.90% and NMDC down by 0.88% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 7.52 points or 0.46% to 1,647.15, Straits Times increased 23.47 points or 0.83% to 2,865.41, KOSPI Index increased 35.35 points or 1.82% to 1,972.91, Taiwan Weighted increased 73.3 points or 0.89% to 8,333.29, Nikkei 225 increased 99.6 points or 0.55% to 18,126.08 and Hang Seng increased 188.86 points or 0.88% to 21,644.09, while Shanghai Composite decreased 15.94 points or 0.53% to 2,989.23 and Jakarta Composite decreased 7.16 points or 0.16% to 4,340.00.