Markets trade in green in early deals

After making a flat opening, Indian equity markets are now showing some upmove in early morning deals, on value buying activities by market-participants. The sentiment got a boost with a US Treasury Department report that amid weaker outlook across emerging market economies India's recovery has strengthened under a new reform agenda, since it is not a large importer. Traders were also getting encouragement with the statement of finance ministry that the country will grow by 7.5 per cent in the current fiscal, slightly higher than international rating agency Standard & Poor's latest forecast, saying the government will roll out more reforms measures to push growth. Besides, some support also came on reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 523.69 crore on October 20, 2015, as per provisional data released by the stock exchanges. On the sectoral front, most of the indices on the BSE were trading in fine fettle, with prominent gainers being the stocks from Tech, Consumer Durables, IT, Metal and Auto counters. On the flip side, stocks from Healthcare and Power counters were the only losers.

On the global front, the US markets ended lower following mixed earnings, with the Nasdaq turning weak due to steep declines in biotech shares and Tesla Motors. The Asian markets were trading mostly in green, despite the weak cues overnight from Wall Street, led by strength in resources stocks.

In the scrip specific development, Federal Bank has plunged 13% on the National Stock Exchange (NSE) in early morning trade after reporting 33% year on year decline in net profit to Rs 161 crore for the quarter ended September 30, 2015 (Q2), due to higher provisioning as a spike in bad loans.

Closer home, the NSE Nifty and BSE Sensex were trading above the psychological 8,250 and 27,350 levels respectively. The market breadth on BSE was positive in the ratio of 1083: 548 while 68 scrips remained unchanged. 

The BSE Sensex is currently trading at 27379.85, up by 73.02 points or 0.27% after trading in a range of 27304.44 and 27405.82. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.31%, while Small cap index gained 0.24%.

The top gaining sectoral indices on the BSE were TECK up by 0.62%, Consumer Durables up by 0.62%, IT up by 0.48%, Metal up by 0.39% and Auto up by 0.23%, while Healthcare down by 0.14% and Power down by 0.05% were the only losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.57%, Vedanta up by 1.14%, Reliance Industries up by 1.08%, Hero MotoCorp up by 1.01% and Axis Bank up by 0.96%. On the flip side, Dr. Reddys Lab down by 1.61%, GAIL India down by 0.83%, Sun Pharma down by 0.79%, Mahindra & Mahindra down by 0.40% and Larsen & Toubro down by 0.22% were the top losers.

Meanwhile, in an environment when global rating agencies have started downgrading India’s growth outlook, the government has got a pat from the United States, as an US Treasury Department report has said that amid weaker outlook across emerging market economies, India's recovery has strengthened under a new reform agenda; since it is not a large importer, but it is not yet a 'major driver' of global growth.

In its semi-annual 'Report to Congress on International Economic and Exchange Rate Policies' the US Treasury Department said that buoyed by savings of $ 44 billion from drop in prices of oil imports, India's total foreign exchange reserve has reached an all-time monthly average high of $ 328 billion - thus making it the eighth country from the top in terms of foreign reserve.

According to the report, the sharp drop in the price of oil is having a large impact on global current account imbalances. On an annualised basis, the roughly $50-per-barrel decline in the price of oil is generating shifting income of over $600 billion annually from oil exporters to oil importers, holding all else constant, with Europe and Asia the key beneficiaries. As per it, China's savings amounted to nearly $120 billion the largest single country gain from lower oil prices. Japan saved $76 billion, India $44 billion, and Korea $36 billion.

In its report, the Treasury said that weaker outlook is evident across emerging market economies, which exerts a growing influence over global economic prospects. It added that slowdown in domestic Chinese investment and Chinese demand for imported commodities and components is having wide-ranging implications for other economies.The CNX Nifty is currently trading at 8278.50, up by 16.85 points or 0.20% after trading in a range of 8255.00 and 8285.20. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.47%, Bosch up by 1.24%, Idea Cellular up by 1.22%, Adani Ports &Special up by 1.19% and Hero MotoCorp up by 1.14%. On the flip side, Dr. Reddys Lab down by 1.80%, Tata Power down by 1.34%, BPCL down by 0.84%, Sun Pharma Inds. down by 0.84% and GAIL India down by 0.55% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 2.71 points or 0.16% to 1,707.74, KOSPI Index increased 6.49 points or 0.32% to 2,045.85, Shanghai Composite increased 13.45 points or 0.39% to 3,438.78, Jakarta Composite increased 53.92 points or 1.18% to 4,639.74 and Nikkei 225 increased 200.01 points or 1.1% to 18,407.16.

On the flip side, Taiwan Weighted decreased 57.66 points or 0.67% to 8,595.94.