Benchmarks make gap-up opening led by Consumer Durables and auto stocks

Indian equity markets have once again made a gap-up opening and are now trading with the gains of around half a percent, tracking firm global cues along with buying in Consumer Durables, auto and financials shares. Sustained buying in the key heavyweights along with broader indices supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to regain their crucial 26,750 and 8,100 mark respectively. Further, Rupee opened higher against the dollar on Wednesday and was trading at 65.53, up 11 paise, at the Interbank Foreign Exchange, on selling of the American currency by exporters and banks, that too kept supporting the markets. Besides, traders were also getting some encouragement with report of India topping in the Nielsen’s global confidence index. The country’s confidence level was unchanged from the preceding quarter at 131 points, though the survey revealed that citizens are actually saving more than before in a continuing trend of caution, and their spending habits haven’t changed much over the past two quarters. However, upside remained capped on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 449.84 crore yesterday as per provisional data released by the stock exchanges.

In the scrip specific development, Minda Industries was locked in upper circuit of 20% on BSE, after the company said its net profit after excluding tax-adjusted exceptional items, increased by 110% year on year (YoY) to Rs 26 crore in September 30, 2015 (Q2FY16) quarter.

On the global front, the US markets ended higher, adding to the previous session's rally as rising oil prices boosted the energy sector, while U.S. Treasury yields rose on speculation about a possible December Federal Reserve interest rate hike. The Asian markets were trading in green on Wednesday as the overnight gains on Wall Street and higher crude oil prices boosted risk appetite.

Back home, all the sectoral indices are trading in green led by Consumer Durables, Auto, Realty, Capital Goods and Metal. The market breadth on BSE was positive in the ratio of 1175: 490 while 57 scrips remained unchanged

The BSE Sensex is currently trading at 26750.92, up by 160.33 points or 0.60% after trading in a range of 26698.65 and 26800.06. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.54%, while Small cap index gained 0.53%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.16%, Auto up by 1.57%, Realty up by 1.06%, Capital Goods up by 0.71% and Metal up by 0.58%, while there were no losers. 

The top gainers on the Sensex were Tata Motors up by 5.64%, HDFC Bank up by 1.16%, Hindalco up by 1.16%, Vedanta up by 1.12% and BHEL up by 1.02%. On the flip side, GAIL India down by 1.59%, ICICI Bank down by 0.43%, Maruti Suzuki down by 0.32%, Cipla down by 0.30% and TCS down by 0.29% were the top losers.

Meanwhile, giving a ray of hope and morale boost to the ailing Indian exports, United Nations in its latest 'Asia-Pacific Trade and Investment Report 2015' has said that exports from India and Vietnam are expected to relatively do well in 2016 as their shipments are largely directed to advanced economies in Europe and North America that are expected to expand in the coming year.

It said the regional trade and investment flows in Asia and the Pacific is decelerating as the economies in the region adjust to cyclical and structural changes resulting from the global economic downturn and the expected reduction in China’s growth rate. Though, it lauded the relatively strong performance of the Indian economy and pointed out that it was unlikely to compensate for sluggish performances elsewhere as India’s market remains only “weakly and selectively’’ integrated with the Asia-Pacific region overall. But said that India still has a long way to go to match China’s role in the region’s trade and investment flows. India’s success will depend on its ability to accelerate the implementation of necessary structural reforms in order to improve its business and investment environment.

The report which emphasises that countries need to adjust to both cyclical and structural changes, especially in light of the global slowdown and an expected reduction in China’s growth rate, said that the Asia-Pacific region, which includes India, China, Japan, Russia, and the ASEAN nations, among others, will hold its position as the largest trading region in the world despite the lowering of trade growth prospects due to global slowdown.

Despite the slow pace, the report said the Asia-Pacific region stands out for its significant and sustained achievements in leveraging trade and investment flows for development. United Nations further in its report said that Countries, heavily dependent on China for their exports, however, will not do well, due to the slowdown in the country’s economy. Asia and the Pacific accounted for nearly 40 per cent of global exports and imports in 2014, while intra-regional imports remained at a little over 50 per cent of the total in 2014, with intra-regional exports at 54 per cent.

The CNX Nifty is currently trading at 8095.50, up by 34.80 points or 0.43% after trading in a range of 8092.05 and 8116.10. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.65%, Tata Steel up by 1.12%, Yes Bank up by 1.12%, HDFC Bank up by 1.06% and Hindalco up by 1.03%. On the flip side, GAIL India down by 1.40%, Asian Paints down by 0.76%, ICICI Bank down by 0.59%, TCS down by 0.45% and Maruti Suzuki down by 0.39% were the top losers.

Asian markets were trading in green, KOSPI Index increased 1.06 points or 0.05% to 2,049.46, FTSE Bursa Malaysia KLCI increased 5.7 points or 0.34% to 1,683.26, Jakarta Composite increased 63 points or 1.39% to 4,596.08, Shanghai Composite increased 85.6 points or 2.58% to 3,402.30, Taiwan Weighted increased 139.47 points or 1.6% to 8,852.66, Nikkei 225 increased 453.9 points or 2.43% to 19,137.14  and Hang Seng increased 709.36 points or 3.14% to 23,277.79.