Markets continue to trade jubilantly in noon deals

Barometer gauges are trading jubilantly but in tight band in noon deals with frontline gauges recapturing their crucial 25,800 (Sensex) and 7,850(Nifty) bastion as investors continue to pour in money into risky equities. Sentiments remained up-beat after data showed narrowing of current account deficit (CAD) to 1.6 per cent of the GDP in the September quarter, compared with 2.2 per cent in the year-ago quarter. Appreciation in Indian rupee too aided the sentiments, the rupee strengthened by 12 paise to a fresh one-month high of 66.22 against the dollar in noon deals today.

On the global front, Asian markets were trading mostly higher at this point of time, tracking gains in US markets as investors cheered strong US data, a pause in the greenback's rally and higher oil prices. Markets in Japan remained shut for the Emperor’s Birthday. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Meanwhile, none of the sectoral indices were trading in the red. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,598 shares on the gaining side against 808 shares on the losing side while 202 shares remain unchanged.

The BSE Sensex is currently trading at 25830.24, up by 239.59 points or 0.94% after trading in a range of 25689.70 and 25865.06. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.63%.

The top gaining sectoral indices on the BSE were Metal up by 1.70%, Oil & Gas up by 1.29%, Power up by 1.25%, Capital Goods up by 1.12% and Healthcare up by 1.09%, while there were no losers on the index.

The top gainers on the Sensex were GAIL India up by 4.86%, BHEL up by 3.52%, Sun Pharma up by 3.02%, Tata Steel up by 2.66% and Bharti Airtel up by 1.92%. On the flip side, Mahindra & Mahindra down by 0.48%, Asian Paints down by 0.34% and Adani Ports &Special down by 0.04% were the top losers.

Meanwhile, Government’s ambitious $7-billion debt recast scheme ‘Uday’ (Ujwal DISCOM Assurance Yojana) for power distribution companies (discoms) has made a promising start. Power, Coal and Renewable Energy Minister Piyush Goyal has said that 12 key states have came up on board, and bonds worth Rs 70,000 crore to Rs 1 lakh crore is likely to be issued in the next three months to help clean up the balance sheets of these ailing utilities.

Goyal said the scheme had the overwhelming support of all stakeholders, particularly bankers, who had forcefully backed it. The success of the Uday package for discoms is vital for banks, which have lent Rs 4.3 lakh crore to these utilities. It is also crucial for India's ambitious clean energy programme, revival of stranded thermal power projects and Prime Minister Narendra Modi's vision to supply affordable 24x7 electricity to all.

The minister said that a dozen states have already opted for the scheme and several others have said approvals would come very soon. He further said that all states are likely to accept the scheme, which will make every state's discom profitable in three years, ending decades of inefficiency and mismanagement in the most vital link of the power sector.

Under the scheme, states have been promised attractive incentives such as cheaper power and more coal if they adopt the scheme and take over 75% of the debt of ailing discoms. States have to issue bonds in the market or to the lenders while the debt that is not taken over by the state will be converted into loans or bonds with an interest rate not exceeding the bank's base rate plus 0.1%.

The CNX Nifty is currently trading at 7854.65, up by 68.55 points or 0.88% after trading in a range of 7826.10 and 7865.90. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 4.98%, Hindalco up by 3.83%, BHEL up by 3.77%, Sun Pharma up by 3.12% and Vedanta up by 2.96%. On the flip side, Mahindra & Mahindra down by 0.43%, Asian Paints down by 0.41%, Tech Mahindra down by 0.09% and Adani Ports &Special down by 0.08% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite rose 2.63 points or 0.07% to 3,654.40, KOSPI Index increased 6.66 points or 0.33% to 1,999.22, FTSE Bursa Malaysia KLCI jumped 11.03 points or 0.67% to 1,654.29, Taiwan Weighted added 22.96 points or 0.28% to 8,315.70 and Hang Seng was up by 231.84 points or 1.06% to 22,061.86. On the flip side, Jakarta Composite was down by 12.58 points or 0.28% to 4,504.98.