Markets make gap up opening amid firm global cues

With a gap-up opening Indian equity markets have recovered all their previous session losses and are now trading in fine fettle with gains of around a percent in morning deals, tracking supportive cues from global indices. Meanwhile, the session was also proving jubilant for broader indices, which were trading with gains in the range of 1-1.20%. The sentiments were further supported by Indian rupee appreciating 24 paise to 66.78 against the US dollar in early trade amid hopes that a rebound in crude oil prices globally may halt outflows from emerging markets (EMs). Besides, sentiments got some support with a survey released on the sidelines of WEF Annual Meeting that has ranked India 22nd on an inaugural list of the world's best countries. About India, the report said the country faces its fair share of international and domestic challenges. Meanwhile, a private report said that India is likely to remain an attractive destination for investors given its relative macro outperformance and the country is likely to clock a GDP growth rate of 7.5 per cent this fiscal. However, foreign institutional investors were net sellers to the tune of Rs 1,747 crore on Thursday, as per provisional data. On the sectoral front all the indices on the BSE were trading in green led by Metal, PSU, Power, Bankex and Oil & Gas.

In scrip specific development, Idea Cellular dropped 5% on the BSE after the company reported a consolidated net profit of Rs 764 crore, lower than estimates for the quarter ended December 2015 (Q3FY16).

On the global front, US markets ended higher on Thursday from a considerable sell-off in the previous session, as dovish comments from European Central Bank president Mario Draghi on the potential for increased stimulus measures and a rare spike in crude prices provided a lift to the major indices.  Asian markets were trading mostly in green following the overnight gains on Wall Street as the rebound in crude oil prices and expectations of more stimulus from the European Central Bank boosted investor sentiment.

Back home, the NSE Nifty and BSE Sensex were trading near the psychological 7,350 and 24,200 levels respectively. The market breadth on BSE was positive in the ratio of 1342: 240 while 66 scrips remained unchanged.

The BSE Sensex is currently trading at 24184.72, up by 222.51 points or 0.93% after trading in a range of 24120.04 and 24202.69. 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 1.11%, while Small cap index up by 1.20%.

The top gaining sectoral indices on the BSE were Metal up by 1.79%, PSU up by 1.78%, Power up by 1.75%, Bankex up by 1.55% and Oil & Gas up by 1.49%, while there were no losers.

The top gainers on the Sensex were Dr. Reddys Lab up by 2.78%, NTPC up by 2.71%, ICICI Bank up by 2.43%, Maruti Suzuki up by 2.43% and SBI up by 2.02%. On the flip side, Bharti Airtel down by 2.71%, Adani Ports & SEZ down by 1.92% and ITC down by 1.17% were the top losers.

Meanwhile, NITI Aayog vice-chairman Arvind Panagariya, reiterating government’s stand has said that NITI Aayog is playing an active role in ensuring ease of doing business in the country. He said that NITI Aayog is playing various roles particularly in the area of ease of doing business. Survey of entrepreneurs is being done to ascertain the areas where entrepreneurs see the improvement has been made or not.

Panagariya further stated that under the PRAGATI initiative of Prime Minister Narendra Modi, regular meetings are held with Chief Ministers and Chief Secretaries via video conferencing and the progress made on various projects specially infrastructure projects is discussed. He added that central government is welcoming the states which want to make changes in their land laws and a model law on land-leasing is being framed with discussions with states.

Talking about the latest initiative of the government of Start-up India, he said that the states will be at the centre-stage of the Start-up India plan and the Centre will capitalise on the experiences of different states in promoting startups. He added that the states have now power of decision-making. As we move forward, the states will be the masters of their fate. The NITI Aayog vice-chairman also said that the government is on the course of fiscal consolidation despite a tough global situation and it needs to enhance both the direct and indirect tax base going ahead.

The CNX Nifty is currently trading at 7347.45, up by 70.65 points or 0.97% after trading in a range of 7327.60 and 7357.90. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Bank Of Baroda up by 3.06%, Dr. Reddys Lab up by 2.79%, Hindalco up by 2.42%, Zee Entertainment up by 2.39% and ICICI Bank up by 2.34%. On the flip side, Idea Cellular down by 3.29%, Bharti Airtel down by 2.52%, Adani Ports & SEZ down by 1.54%, ITC down by 0.86% and Wipro down by 0.09% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 14.25 points or 0.89% to 1,615.17, KOSPI Index increased 22.67 points or 1.23% to 1,863.20, Jakarta Composite increased 24.08 points or 0.55% to 4,438.20, Taiwan Weighted increased 54.55 points or 0.71% to 7,718.56, Hang Seng increased 263.58 points or 1.42% to 18,805.73 and Nikkei 225 increased 575.58 points or 3.59% to 16,592.84.

On the flip side, Shanghai Composite decreased 8.06 points or 0.28% to 2,872.42.