Markets trade flat with positive bias in early deals

After falling around half a percent in last session, Indian equity markets have made a positive start and are now trading with marginal gains, on the back of stabilising Asian cues, in early deals. The sentiments were further supported by Indian rupee appreciating 11 paise to 66.70 against the dollar in early trade at the Interbank Foreign Exchange market on fresh selling of the US currency by exporters and banks. However, upside remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 1319.24 crore on January 11, 2016, as per provisional data released by the stock exchanges. Some cautiousness also prevailed ahead of the release of consumer price inflation and index of industrial production (IIP) data due later today. On the sectoral front, traders were seen piling up position in Capital Goods, Power, Metal, Consumer Durables and Auto, while selling was witnessed in IT, TECK, FMCG and Bankex.

In the scrip specific development, CMI surged 18% on the BSE after GMO-controlled funds bought more than 10% stake in telecom cables manufacturer for Rs 45 crore through open market transaction.

On the global front, the US markets ended mostly in green on Monday, after dipping in and out of negative territory as a deepening rout in oil prices hit the energy sector on the heels of the worst weekly start ever to a new year. Asian markets were trading mostly in red amid cautious trades, with some of the markets advancing on bargain hunting following the steep losses over the past few sessions.

Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,550 and 24,800 levels respectively. The market breadth on BSE was positive in the ratio of 1287: 457 while 87 scrips remained unchanged.

The BSE Sensex is currently trading at 24835.21, up by 10.17 points or 0.04% after trading in a range of 24794.19 and 24882.30. 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 0.41%, while Small cap index up by 0.56%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.31%, Power up by 1.18%, Metal up by 0.65%, Consumer Durables up by 0.58% and Auto up by 0.46%, while IT down by 0.66%, TECK down by 0.59%, FMCG down by 0.09% and Bankex down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.08%, BHEL up by 1.90%, Larsen & Toubro up by 1.70%, Tata Steel up by 1.25% and Sun Pharma Inds. up by 1.25%. On the flip side, ONGC down by 1.83%, Axis Bank down by 1.34%, Dr. Reddys Lab down by 0.97%, Hero MotoCorp down by 0.89% and TCS down by 0.89% were the top losers.

Meanwhile, in order to fire up growth and tackle the growing unease in the farm economy, the government is making a strategy to focus on infrastructure, agriculture and restoring the health of the banking system areas as well as specific measures to ease stress in the rural economy as part of the 2016-17 Budget. There is a need to take effective measures to revive vital sectors and overall growth and the focus of the government is mainly on irrigation and agriculture as this is a very crucial Budget for the government.

Further, the infrastructure sector will see greater attention as the government is keen to step up investment despite a challenging fiscal situation. The government has already allocated Rs 5,300 crore to support micro-irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana and has urged states to chip in substantially in this vital sector. In the absence of private investment, indications are that the sector will receive special attention, including unveiling of some innovative financing schemes. For banking sector, the government has taken several measures, including pumping in Rs 70,000 crore to recapitalise state-run banks. There is a view within the government that more needs to be done to secure the health of the crucial sector. The rural economy, a key driver of demand and a support for the broader economy, has taken a knock from the two back-to-back seasons of patchy monsoon rains. The segment drives demand for everything from motorcycles to tractors, televisions and refrigerators. For agricultural sector, Finance minister Arun Jaitley already signaled the government's support by backing calls for raising investment in the crucial farm sector and leveraging technology to fire up growth.

Besides the focus on the crucial sectors Jaitley's Budget team is also working on the big numbers of the financial document, keeping in view the government's commitment to meet the fiscal deficit target of 3.9% of the gross domestic product for the current fiscal year.

The CNX Nifty is currently trading at 7565.40, up by 1.55 points or 0.02% after trading in a range of 7554.55 and 7588.30. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.12%, BHEL up by 1.97%, Larsen & Toubro up by 1.65%, Sun Pharma Inds. up by 1.37% and Vedanta up by 1.12%. On the flip side, Cairn India down by 1.96%, ONGC down by 1.69%, Axis Bank down by 1.25%, TCS down by 1.08% and Ultratech Cement down by 0.98% were the top losers. 

Asian markets were trading mostly in green; KOSPI Index increased 1.13 points or 0.06% to 1,895.97, FTSE Bursa Malaysia KLCI increased 9.49 points or 0.58% to 1,647.08, Shanghai Composite increased 11.34 points or 0.38% to 3,028.04, Hang Seng increased 51.19 points or 0.26% to 19,939.69 and Jakarta Composite increased 58.05 points or 1.3% to 4,523.54.

On the flip side, Nikkei 225 decreased 319.17 points or 1.8% to 17,378.79 and Taiwan Weighted decreased 11.09 points or 0.14% to 7,777.33.