Benchmarks trade in fine fettle; Sensex reclaims 26000 mark

With a positive opening Indian equity markets have extended their previous session gains and are now trading in fine fettle, up by over a quarter percent that lifted both Sensex and Nifty above crucial 26,000 and 7,900 levels. Meanwhile, broader indices were also trading in line with larger counterparts with gains in the range of 0.30-0.40%. However, caution is likely to prevail in the markets with participants closely monitoring the proceedings of the winter session of Parliament and eyeing the passage of the crucial GST bill. Further, the rupee depreciated by 23 paise to 66.80 to hit nearly one-year low against US dollar in early trade on month-end demand for the American currency from importers and banks on the back of higher greenback in overseas markets that kept pressurizing the sentiments. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 398.10 crore on November 26, 2015, as per provisional data released by the stock exchanges.

In the scrip specific development, Welspun Corp rallied 9% on the BSE after the company has won an order for supply of 216 K MTs line pipes for an onshore project in Americas.

On the global front, Asian markets were trading in red after China reported a decline in industrial profits for the month of October.

Back home, traders were seen piling up position in Banking, Capital Goods, Realty, Auto and PSU, while selling was witnessed in Consumer Durables, FMCG, Oil & Gas, IT and TECK. The market breadth on BSE was positive in the ratio of 1030: 605 while 113 scrips remained unchanged

The BSE Sensex is currently trading at 26007.23, up by 48.60 points or 0.19% after trading in a range of 25937.32 and 26035.57. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index was higher by 0.31%.

The top gaining sectoral indices on the BSE were Bankex up by 0.86%, Capital Goods up by 0.68%, Realty up by 0.59%, Auto up by 0.44% and PSU up by 0.23%, while Consumer Durables down by 0.83%, FMCG down by 0.57%, Oil & Gas down by 0.29%, IT down by 0.13% and TECK down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 1.31%, Mahindra & Mahindra up by 1.15%, Tata Motors up by 1.04%, Tata Steel up by 1.01% and Larsen & Toubro up by 0.91%. On the flip side, GAIL India down by 1.17%, ITC down by 1.02%, Bajaj Auto down by 0.99%, Wipro down by 0.76% and Dr. Reddys Lab down by 0.65% were the top losers.

Meanwhile, amid doubts of the winter session of the parliament too turning a washout, the government is making all efforts to get the bill through in the upper house and the Finance Minister Arun Jaitley has said that Prime Minister Narendra Modi is willing to speak to everyone to get the landmark indirect tax law through. He said that 'We have absolutely no hesitation even at the level of Prime Minister, we have never had in it in the past, we don’t have it (now). He is willing to speak to everyone.”

Jaitley further said that I have personally discussed with almost every leader of the Congress party, more particularly in Parliament and I am emphasising the word every leader of the Congress party. The Congress leaders wanted to discuss the issue with the party leadership and sought time before it gets back to the government in a day or two, after which government will seek to address the concerns. The Congress had stalled passage of the GST Constitution Amendment Bill in the last session of Parliament over its demand that a revenue-neutral rate not higher than 18 percent be mentioned in the Constitution Amendment bill.

Earlier, Parliamentary Affairs Minister M Venkaiah Naidu had said that of the total 32 parties represented at the all-party meet, 30 were in favour of the legislation and wanted its early passage. He added that the government is also keen that Congress is onboard in the passage of the Constitution amendment bill as it is primarily a Congress bill.GST Bill is to be implemented from April 1, 2016.The April 1 deadline may be missed if Parliament does not pass the Bill in the session from November 26 to December 23. Once the Bill is passed, more than half of the states have to ratify it before Parliament passes another enabling bill to implement GST.

The CNX Nifty is currently trading at 7905.05, up by 21.25 points or 0.27% after trading in a range of 7879.45 and 7910.60. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Bank Of Baroda up by 1.68%, Tata Steel up by 1.10%, Mahindra & Mahindra up by 1.02%, Cipla up by 0.85% and Larsen & Toubro up by 0.76%. On the flip side, Idea Cellular down by 2.62%, GAIL India down by 1.31%, ITC down by 1.11%, Hero MotoCorp down by 1.07% and Dr. Reddys Lab down by 1.06% were the top losers.

Asian markets were trading in red, Hang Seng decreased 276.72 points or 1.23% to 22,212.22, Nikkei 225 decreased 69.64 points or 0.35% to 19,874.77, Taiwan Weighted decreased 64.89 points or 0.76% to 8,420.01, Shanghai Composite decreased 55.37 points or 1.52% to 3,580.18, Jakarta Composite decreased 8.93 points or 0.19% to 4,588.13, KOSPI Index decreased 0.89 points or 0.04% to 2,029.79 and FTSE Bursa Malaysia KLCI decreased 0.54 points or 0.03% to 1,682.55.