Jubilation continues on Dalal Street in noon deals

Indian markets continuing their jubilation were trading higher by around a percent in afternoon deals. The benchmarks after a positive start have been strengthening gradually with no sign of any profit taking till yet, with Sensex once again hitting the crucial psychological mark of 27,000. Some support came with the government approval of one-time financial assistance for incomplete and languishing national highway (NH) projects. Projects where half of the construction was complete till November 2014 will be eligible for this one-time financial assistance. Besides, appreciation in the rupee and data showing foreign funds continued their buying on domestic bourses triggered buying by investors. The rupee was trading 29 paise higher at 64.74 against the dollar in noon deals.

Global cues too remained supportive with European counters making a firm start with CAC, DAX and FTSE all trading in green with a gain of over half a percent in early deals. Asian markets were trading mostly in green at this point of time after weak US retail sales data reinforced hopes of delay in interest rate hike by the US Federal Reserve. However, Japanese manufacturers’ confidence worsened for the second straight month in October and is expected to fade going forward.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. None of the sectoral indices was trading in the red. While auto and realty witnessed the maximum gain in trade, public sector undertaking, metal, banking, oil and gas, power and FMCG too were trading significantly higher. The market breadth on the BSE was positive; there were 1,530 shares on the gaining side against 894 shares on the losing side while 130 shares remain unchanged.

The BSE Sensex is currently trading at 27008.80, up by 229.14 points or 0.86% after trading in a range of 26836.77 and 27027.11. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.84%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Auto up by 1.89%, Realty up by 1.30%, PSU up by 1.30%, Metal up by 1.16%, Bankex up by 1.12%, while there were no losers on the index.

The top gainers on the Sensex were Tata Motors up by 5.82%, Maruti Suzuki up by 2.30%, Hero MotoCorp up by 2.18%, Lupin up by 2.15% and Coal India up by 1.99%. On the flip side, Hindustan Unilever down by 1.30%, Hindalco down by 1.24%, Wipro down by 0.67%, Cipla down by 0.48% and Mahindra & Mahindra down by 0.46% were the top losers.

Meanwhile, in order to meet the set bilateral target to $500 billion in the next few years from the present $100 billion, United States wants more investment from India. US Consulate General Tom Vajda at the 'Select USA' roadshow in Mumbai said that he see lot of potential in bilateral trade and investment between the two countries and wants more Indian firms to invest and help US to grow the economy.

Few years back US President Barack Obama launched the 'SelectUSA' to promote business investment into the US. The executive director of the Select USA, Vinai Thummalapally in the roadshow has said that the US provides large investment opportunities for Indian companies in various sectors such as software, IT services, gas exploration, pharmaceuticals, biotechnology, industrial machinery and business services. At present there are 200 Indian firms operating in US from an estimated 85 in 2005. He further added that 'India is the fourth fastest growing source of investment in the US, with investment of $11 billion last year. Indian firms employ around 44,000 American workers, and they export more than $2 billion worth of goods from the US.

The US' first-ever October 13-16 India roadshow that began in Delhi will travel to Chennai on October 15 and reach Kolkata on October 16.The roadshow offer the US State and Regional Economic Development Organisations the opportunity to market their locations directly to potential investors. With a view to promote business investment into the US and to showcase the US as the world's premier business location and to provide easy access to programmes and services related to business investment. Investors will be offered insights about unique incentives of each area and key contacts to guide their investment decisions.

The CNX Nifty is currently trading at 8180.10, up by 72.20 points or 0.89% after trading in a range of 8129.80 and 8186.65. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 7.07%, Tata Motors up by 6.00%, Yes Bank up by 2.47%, Hero MotoCorp up by 2.36% and Maruti Suzuki up by 2.34%. On the flip side, Hindalco down by 1.35%, Hindustan Unilever down by 1.28%, Wipro down by 0.81%, Mahindra & Mahindra down by 0.71% and Cipla down by 0.70% were the top losers.

All the Asian markets were trading higher; FTSE Bursa Malaysia KLCI increased 5.98 points or 0.35% to 1,717.12, KOSPI Index surged 23.72 points or 1.18% to 2,033.27, Jakarta Composite rose 36.94 points or 0.82% to 4,520.02, Shanghai Composite gained 61.42 points or 1.88% to 3,323.86, Taiwan Weighted jumped 79.01 points or 0.93% to 8,601.52, Nikkei 225 added 205.9 points or 1.15% to 18,096.90 and Hang Seng was up by 465.67 points or 2.08% to 22,905.58.

European Markets were trading in the green; Germany’s DAX gained 0.65%, France’s CAC added 0.66% and UK’s FTSE was up by 0.59%.