Benchmarks continue firm trade in late afternoon session

Indian equity benchmarks continued to trade firm in late afternoon session on revival of buying by funds and retail investors ahead of the RBI monetary policy due on December 1, 2015.  Sentiments got a boost on reports that the government exuded confidence of having the Goods and Services Tax (GST) Bill passed, with several Opposition parties coming out in open support. Besides, a better-than-expected roll-over rate after Thursday's derivatives expiry also supported markets' gains. However, gains remained capped as Indian currency slipped to fresh two years low, on persistent month-end dollar demand from importers and banks. On the global front, Asian markets trading mostly in red after the latest data showed profits earned by Chinese industrial companies fell 4.6% in October 2015 from a year earlier, declining for the fifth consecutive month as the world's second-largest economy slows and industries deal with overcapacity. European equities opened lower on Friday as investors react to sharp falls in China's stock markets and mull the idea of more stimulus from the European Central Bank (ECB) when it meets next week.

Back home, traders were seen piling position in Banking, Capital Goods and Metal stocks, while selling was witnessed in Consumer Durables, Oil & Gas and FMCG sector stocks. In the scrip specific development, shares of Ashok Leyland have surged after the company has won a contract for 3600 vehicles worth $200 million from the government of Cote D'Ivoire, a west African country formerly known as Ivory Coast. Furthermore, SKS Microfinance has rallied nearly 7% to Rs 452 on the BSE on heavy volumes, after the company announced a 100 basis point (bps) reduction in the interest rate charged to borrowers.

The BSE Sensex is currently trading at 26101.01, up by 142.38 points or 0.55% after trading in a range of 25937.32 and 26125.63. 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 0.37%, while Small cap index up by 0.23%.

The top gaining sectoral indices on the BSE were Bankex up by 1.71%, Capital Goods up by 1.26%, Metal up by 0.82%, PSU up by 0.62% and IT up by 0.41%, while Consumer Durables down by 1.36%, Oil & Gas down by 0.65% and FMCG down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 3.33%, SBI up by 2.16%, Vedanta up by 2.10%, Larsen & Toubro up by 1.97% and ICICI Bank up by 1.97%. On the flip side, GAIL India down by 1.32%, Reliance Industries down by 0.96%, Bajaj Auto down by 0.87%, Maruti Suzuki down by 0.70% and Lupin down by 0.59% were the top losers.

Meanwhile, seeking to improve basic infrastructure in urban areas, the Urban Development ministry gave a nod for an investment of Rs 3,120 crore for enhancing water supply, sewerage network, non-motorised transportation system and availability of public spaces in 102 cities across five states, for boosting urban infrastructure under Atal Mission for Rejuvenation and Urban Transformation (AMRUT). An inter-ministerial Apex Committee chaired by Urban Development Secretary Madhusudhan Prasad approved state-level Annual Action Plans for 2015-16 for five states as proposed by respective state governments. Ministry of Urban Development will provide an assistance of Rs 540 crore.

An inter-ministerial Apex Committee approved the annual action plan for Haryana, which has 18 AMRUT cities with an investment of Rs 438 crore, Rs.573 crore for Chattisgarh (9 cities), Rs.416 crore for Telangana (12 cities), Rs.588 crore for Kerala (9 cities) and Rs.1,105 crore for West Bengal which has 54 Atal Mission cities. Furthermore, the total investment in water supply projects in 58 mission states will be Rs 2,386 crore, sewerage projects will have an investment of Rs 495 crore in 17 cities, storm water drains will be provided with an investment of Rs 106 crore in 9 cities, for Urban transport investment will be Rs 61 crore in 9 cities and Rs 72 crore for development of parks and green spaces in all the 102 cities.

Government with the approval so far cleared a total investment of Rs 11,654 crore in 272 AMRUT cities for improving infrastructure for ensuring water and sewerage connections to all households in such cities, besides, enabling water supply as per the norm of 135 litres per capita per day for urban areas. At present only about 50 per cent of urban households are provided with water connections and water supply is about 75 lpcd. Availability of sewerage connections is very low. Atal Mission seeks to bridge this deficit. 

The CNX Nifty is currently trading at 7925.90, up by 42.10 points or 0.53% after trading in a range of 7879.45 and 7938.90. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 5.03%, Hindalco up by 3.33%, PNB up by 3.29%, Vedanta up by 2.33% and SBI up by 2.31%. On the flip side, Idea Cellular down by 2.21%, BPCL down by 1.33%, GAIL India down by 1.22%, Reliance Industries down by 1.12% and Asian Paints down by 0.84% were the top losers.

Asian markets were trading mostly in red; Hang Seng was down by 1.87%, Taiwan Weighted down by 1.02%, Shanghai Composite down by 5.48%, Nikkei 225 down by 0.3%, Jakarta Composite down by 0.93% and KOSPI Index was down by 0.08%. On the flip side, FTSE Bursa Malaysia KLCI was up by 0.04%.

European markets were trading in red; UK’s FTSE 100 was down by 0.5%, France’s CAC down by 0.46% and Germany’s DAX was down by 0.08%.