Markets continue to trade range bound in noon deals

Indian equity benchmarks are trading in tight band in noon deals with modest gains as investors indulged in enlarging positions amid renewed hopes of a rate cut by Reserve Bank of India (RBI). Some support came in with India Meteorological Department (IMD) report saying the enhanced activity of the southwest monsoon across several parts of the country for the next three-four days is giving a breather to regions reeling under severe water deficiency. Appreciation in Indian rupee too aided the sentiment. The Indian rupee is trading at 65.60 up by 10 paise following sustained bouts of dollar selling by exporters and banks amid strength in the local equities.

On the global front, Asian markets are trading largely in green at this point of time, stabilizing from sharp declines in the previous session, as Wall Street ended higher overnight. However, trading volumes were light, with markets in Japan closed for the National Day holiday and as worries over global growth lingered. However European counters have made a weak start with CAC and FTSE trading in red in early deals. Back home, on the sectoral front, software, consumer durables and technology witnessed the maximum gain in trade, while metal, capital goods and power remained the top losers on the BSE sectoral space. The broader indices too were trading in green, while the market breadth on the BSE was positive; there were 1,445 shares on the gaining side against 884 shares on the losing side while 109 shares remain unchanged.

The BSE Sensex is currently trading at 26235.99, up by 43.01 points or 0.16% after trading in a range of 26218.44 and 26339.10. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.29%, while Small cap index up by 0.76%.

The top gaining sectoral indices on the BSE were IT up by 1.95%, Consumer Durables up by 1.52%, TECK up by 1.49%, Healthcare up by 0.90% and FMCG up by 0.43%, while Metal down by 0.69%, Capital Goods down by 0.35% and Power down by 0.24% were the few losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.63%, Wipro up by 1.70%, Mahindra & Mahindra up by 1.05%, ITC up by 0.97% and Dr. Reddys Lab up by 0.82%. On the flip side, Hindalco down by 2.82%, Bharti Airtel down by 1.96%, NTPC down by 1.50%, Reliance Industries down by 1.21% and Vedanta down by 1.01% were the top losers.

Meanwhile, the Asian Development Bank (ADB) in its 2015 outlook update has said that growth in developing Asia will likely be slower than previously thought as a slowdown in China's economy hurts demand. The bank has said that developing Asia is now expected to grow 5.8 percent and 6.0 percent this year and in 2016, down from the ADB's July forecast of 6.1 percent and 6.2 percent. The report, which covers 45 economies, cut forecasts for some of the region's biggest countries including China, India, South Korea and Indonesia. The ADB said that the capital outflows could accelerate ahead of the Fed rate hike and urged policymakers to strengthen financial systems in the region to mitigate shocks.

As per the report India’s growth is seen weaker at 7.4 percent and 7.8 percent for this year and next compared with its July forecasts of 7.8 percent and 8.2 percent, citing slower progress on major reforms, which has hindered investment, and sagging exports. The Chinese economy, which grew a revised 7.3 per cent last year, is now tipped to slow to 6.8 per cent growth in 2015 and 6.7 per cent in 2016. That's down from 7.2 per cent and 7.0 per cent forecast previously.

The ADB slashed its growth forecast for South Asia to 6.9 percent this year and 7.3 percent next year compared with the 7.3 percent and 7.6 percent estimates made in July. Southeast Asia's growth will be at 4.4 percent this year, same as last year and down from its July forecast of 4.6 percent, before accelerating to 4.9 percent next year.

The report said that despite robust consumption demand, economic activity fell short of expectations in the first eight months of the year as investments and exports underperformed' in China The Manila-based lender has however said that it expects the pressure to ease once the recovery in the world's advanced economies picks up, strengthening global demand.

The CNX Nifty is currently trading at 7996.00, up by 18.90 points or 0.24% after trading in a range of 7979.65 and 8021.60. There were 24 stocks advancing against 25 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were Infosys up by 2.72%, HCL Tech up by 2.17%, Wipro up by 1.71%, Tech Mahindra up by 1.23% and ITC up by 1.05%. On the flip side, Hindalco down by 2.94%, Bharti Airtel down by 1.92%, NTPC down by 1.66%, Yes Bank down by 1.33% and Reliance Industries down by 1.21% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 17.38 points or 0.88% to 1,982.06, Straits Times rose 21.21 points or 0.74% to 2,903.48, Shanghai Composite surged 41.16 points or 1.3% to 3,197.70, Taiwan Weighted gained 58.88 points or 0.71% to 8,365.92 and Hang Seng was up by 323.72 points or 1.49% to 22,080.65. On the flip side, Jakarta Composite slipped 14.37 points or 0.33% to 4,361.71 and FTSE Bursa Malaysia KLCI was down by 0.51 points or 0.03% to 1,638.96.

European Markets were trading in red; UK’s FTSE declined 0.10% and France’s CAC was down by 0.21%, while Germany’s DAX was up by 0.07%.