Benchmarks continue to trade firm, Nifty holds 7900 level

Indian equity benchmarks continued to trade firm in early noon session, on increased buying by investors. Besides, fresh buying in rate sensitive stocks ahead of the RBI monetary policy due on December 1, 2015, too was supporting the markets. Meanwhile, the aviation stocks were not showing any strength despite the Reserve Bank of India, relaxing the norms for aircraft and helicopter imports. It has said that banks can allow advance remittances for imports once the company has approval from aviation regulator DGCA. At present, both sensex and Nifty were trading above the crucial 26,100 and 7,900 levels respectively.

On the global front, Asian markets were trading in red, China reported a decline in industrial profits for the month of October. Back home, the broader markets were outperforming the larger peers with BSE Mid-cap and Small-cap indices trading up by around 0.70%. The market breadth on BSE was positive, out of 2393 stocks traded, 1452 stocks advanced, while 741 stocks declined on the BSE. In scrip specific development, share of Ashok Leyland was trading higher after the company signed a contract with the government of Cote D’Ivoire for 3600 vehicles worth $200 million.

The BSE Sensex is currently trading at 26100.99, up by 142.36 points or 0.55% after trading in a range of 25937.32 and 26125.63. 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 0.69%, while Small cap index gained 0.67%.

The top gaining sectoral indices on the BSE were Metal up by 1.58%, Bankex up by 1.45%, Capital Goods up by 1.45%, Realty up by 0.87% and PSU up by 0.83%, while Consumer Durables down by 0.66%, Oil & Gas down by 0.25% and FMCG down by 0.22% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 4.33%, Vedanta up by 3.10%, Tata Steel up by 2.68%, BHEL up by 2.08% and Larsen & Toubro up by 2.06%. On the flip side, GAIL India down by 1.03%, Lupin down by 0.97%, Bajaj Auto down by 0.71%, Maruti Suzuki down by 0.56% and Reliance Industries down by 0.52% were the top losers.

Meanwhile, in a positive move, Reserve Bank of India (RBI) has relaxed norms for aircraft and helicopter imports. In its notification RBI has said that the banks could allow advance remittances, without bank guarantee or an unconditional, irrevocable standby letter of credit up to $50 million, in the case of import of aircrafts/ helicopters/ other aviation related purchases once the company has approval from aviation regulator Director General of Civil Aviation (DGCA). The relaxation comes at a time when the Ministry is working on a new aviation policy that seeks to provide various incentives for the sector.

In the latest notification, RBI has done away with the earlier requirement whereby Civil Aviation Ministry's nod was compulsory for advance remittances. These norms would be applicable on companies operating Scheduled or Non-Scheduled Air Transport Services, including Air Taxi Services. Earlier, advance remittance was allowed by banks only when the importing entity had requisite approvals from Civil Aviation Ministry, DGCA and other agencies.

Meanwhile, on evidence of import of goods, RBI also notified that with the establishment of Free Trade Warehousing Zones/SEZ Unit warehouses, imported goods can be stored therein, for re-export/re-selling purposes for which Customs Authorities issue Ex-Bond Bill of Entry. It further said that the banks are advised to consider the Bill of Entry issued by Customs Authorities named as Ex-Bond Bill of Entry or by any other similar nomenclature, as evidence for physical import of goods. Further, in cases where goods have been imported through couriers, the Courier Bill of Entry, as declared by the courier companies to the Customs Authorities, may also be considered as evidence of import of goods.

The CNX Nifty is currently trading at 7931.25, up by 47.45 points or 0.60% after trading in a range of 7879.45 and 7938.90. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.19%, Bank of Baroda up by 3.68%, PNB up by 3.29%, Vedanta up by 3.27% and Tata Steel up by 2.76%. On the flip side, Idea Cellular down by 1.91%, BPCL down by 1.43%, Lupin down by 1.02%, GAIL India down by 0.97% and Reliance Industries down by 0.69% were the top losers.

Asian markets were trading in red; Hang Seng decreased 292.79 points or 1.3% to 22,196.15, Shanghai Composite decreased 107.13 points or 2.95% to 3,528.43, Taiwan Weighted decreased 86.5 points or 1.02% to 8,398.40, Nikkei 225 decreased 84.33 points or 0.42% to 19,860.08, Jakarta Composite decreased 16.16 points or 0.35% to 4,580.90 and KOSPI Index decreased 1.46 points or 0.07% to 2,029.22, while FTSE Bursa Malaysia KLCI increased 0.38 points or 0.02% to 1,683.47.