Benchmarks magnify gains; Sensex above 27000 mark

The domestic markets after a cautious start have started firming up in the mid morning trade with benchmarks trading higher by around quarter of a percent. Apart from blue chips, broader indices too equally participated in the rally with both mid cap and small cap indices trading up by over 0.20%. Sentiments remained up-beat with Prime Minister Narendra Modi's statement that the Goods and Services Tax (GST) will be rolled out next year. The Bill has already been approved by the Lok Sabha and is pending in the Rajya Sabha, where the ruling NDA does not have a majority. Modi also added that the government was speeding up regulatory clearances, reducing licensing requirements in the defence sector and making tax policy more consistent. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 480.24 crore on October 06, 2014. Meanwhile, shares of sugar companies were trading higher for the second straight day after commodity prices have jumped 24% in the past two months on expectations of improved demand during the festival season in the domestic market and on global forecasts of shortage during the next crushing season. Further, shares of oil exploration & production companies such as ONGC, Cairn India and Oil India came into jubilant mood on rise in crude oil prices.

On the global front, Asian stocks hit a seven-week high on Wednesday as oil prices showed some signs of life, supporting battered resource shares and emerging economy currencies. Further, a weak Japanese economic data has raised speculation of fresh stimulus from the BOJ, most market players believe governor Haruhiko Kuroda would prefer to sit tight for now. Meanwhile, US stocks finish largely in the red, with the S&P 500 breaking a five-session winning streak and biotech stocks once again getting sold off. Back home, Indian rupee recovered by 12 paise to trade at 65.29 against the dollar in early trade on fresh selling of the US currency by exporters amid sustained foreign fund inflows.

Back on street, all BSE sectoral indices were trading in the green. Among them, Metal index gained the most by 1.13 per cent, followed by Auto 0.92 per cent, Consumer Durables 0.83 per cent and PSU 0.72 per cent. In scrip specific development, shares of Jubilant Life Sciences surged after the company received Abbreviated New Drug Application (ANDA) final approval from the US Food and Drug Administration (US FDA) for Indomethacin ER Capsule 75mg, which is a non?steriodal anti-inflammatory drug used for treatment of pain. Furthermore, shares of Bank of Maharashtra have gained after the bank received shareholders’ approval to raise Rs 394 crore by issuing 10.51 crore equity shares on preferential basis to the government.

The market breadth on BSE was positive, out of 2167 stocks traded, 1342 stocks advanced, while 733 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27023.06, up by 90.18 points or 0.33% after trading in a range of 26877.51 and 27051.84. 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 0.23%, while Small cap index up by 0.71%.

There were no losers on the BSE Sectoral front, however, prominent gainers on the BSE Sectoral front were Metal up by 1.13%, Auto up by 0.92%, Consumer Durables up by 0.83%, PSU up by 0.72%, Realty up by 0.64%

The top gainers on the Sensex were Vedanta up by 5.19%, Hindalco up by 2.68%, ONGC up by 2.29%, Tata Motors up by 1.95% and Bajaj Auto up by 1.81%. On the flip side, Bharti Airtel down by 1.75%, Wipro down by 1.61%, ICICI Bank down by 1.26%, Dr. Reddys Lab down by 0.90% and Sun Pharma Inds. down by 0.59% were the top losers.

Meanwhile, a top US industry advocacy, US India Business Council (USIBC) has argued that for India to reach its ambiguous economic growth targets, it needs to be integrated into global trade pacts, especially those that drive commerce in the dynamic Asia Pacific region. Mukesh Aghi, president of USIBC after the deal on TPP was announced by the US and 11 other countries, said that India's exploration of APEC membership, which is currently an informal precursor to TPP membership can unlock India's potential as a global manufacturing hub and deepen its ties with the global economy.

Recently, the US and 11 other nations reached a landmark deal on the Trans-Pacific Partnership which aims to become the world's largest free-trade zone linking 40 per cent of the global economy. The 12 countries Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam constitute 40 per cent of the global economy.

Aghi further added that the recent study by the Peterson Institute for International Economics, demonstrates that if India joins TPP agreement that included all of the APEC countries and were to complete its domestic reforms, it could potentially expand more than $500 billion exports per year. On the other hand, if it were to stand outside the negotiations, while other countries entered a regional trade agreement, export losses of $50 billion per year, as trade is diverted away from India.

Earlier, the former Australian Prime Minister, Kevin Rudd and USIBC's outgoing Chairman Ajay Banga had said that APEC membership would help prepare India to participate in the emerging mega regional trade arrangements, such as the Trans-Pacific Partnership (TPP) and the Free Trade Area of the Asia-Pacific (FTAAP) that will define the future of global trade. Meanwhile, Commerce Minister Nirmala Sitharaman contesting India's exclusion from TPP had said that India is not being left out from TPP. The country is currently engaged in ARSEP (Asean Regional Comprehensive Economic Partnership) which consists of Association of Southeast Asian Nations (ASEAN) and ASEAN FTA countries and is actually moving faster along with other members.

The CNX Nifty is currently trading at 8173.20, up by 20.30 points or 0.25% after trading in a range of 8132.90 and 8182.95. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 5.19%, Cairn India up by 3.90%, Hindalco up by 2.20%, ONGC up by 2.10% and Bajaj Auto up by 1.97%. On the flip side, HCL Tech. down by 1.77%, Bharti Airtel down by 1.71%, Wipro down by 1.67%, ICICI Bank down by 1.29% and Zee Entertainment down by 1.15% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI was up by 0.43%, KOSPI Index up by 0.62%, Straits Times up by 0.95%, Nikkei 225 up by 0.61%, Taiwan Weighted up by 1.03% and Hang Seng up by 1.1%. On the flip side, Jakarta Composite was down by 0.45%.