Benchmarks continue to trade range band in noon deals

Indian equity benchmarks are trading in range bound in noon deals with marginal gains. Sentiments remained optimistic after Indian manufacturing sector growth rose to a four-month high in January driven by rising inflows of new business orders from domestic as well as export clients. The Nikkei India Manufacturing PMI, a composite monthly indicator of manufacturing performance, stood at 51.1 in January, up from 49.1 in December. Appreciation in Indian rupee too aided sentiments. The rupee appreciated further from early gains and was trading higher by 14 paise against the US dollar to Rs 67.64 in noon deals on sustained bouts of dollar selling by banks and exporters. However, gains remained capped as investors opted to remain on sidelines ahead of the Reserve Bank of India’s (RBI) monetary policy review tomorrow capping upside gains.

On the global front, Asian markets were trading mostly in green at this point of time on the back of the Bank of Japan’s surprise stimulus move continued to be felt across financial markets. Latest data showed that China’s Caixin manufacturing purchasing managers’ index (PMI) inched up to 48.4 last month. Closer home, select stocks from steel sector edged higher with Union Minister Narendra Singh Tomar stating that additional steps will be taken to protect domestic steel industry. The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1,493 shares on the gaining side against 923 shares on the losing side while 118 shares remain unchanged.

The BSE Sensex is currently trading at 24910.97, up by 40.28 points or 0.16% after trading in a range of 24846.24 and 25002.32. 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 0.67%, while Small cap index up by 0.63%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.88%, Telecom up by 1.69%, Industrials up by 1.30%, FMCG up by 0.94% and TECK up by 0.92%, while Bankex down by 0.84%, PSU down by 0.60%, Finance down by 0.37%, Metal down by 0.20% and Power down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 3.43%, Larsen & Toubro up by 3.41%, Cipla up by 2.99%, Asian Paints up by 1.92% and Lupin up by 1.62%. On the flip side, ICICI Bank down by 3.37%, Maruti Suzuki down by 2.86%, SBI down by 2.45%, Axis Bank down by 1.75% and ONGC down by 1.46% were the top losers.

Meanwhile, terming infrastructure upgradation as a ‘major challenge’ for the policy makers, Minister of Road Transport and Highways Nitin Gadkari has said that India needs about $1 trillion for the development of new roads, ports and airports over the next few years. Gadkari said that there is no dearth of funds to meet this 'major challenge' and the NDA government is set to transform India's infrastructure, however the bureaucratic hurdles delay the process.

Expressing confidence on removing bureaucratic hurdles in the way of road projects, Gadkari said that companies in the sector are victims of the government's indecisiveness and the need for multiple approvals. Besides, he said the government had several rounds of discussions with bankers and contractors to clarify issues relating to land acquisition and project approval.

Gadkari further stated that building of infrastructure will add 2 percent to the India's GDP growth. He further added that his ministry is working on a target of 30 km of new roads per day by March 31 besides working towards achieving an ambitious target of 100 km a day. In the upcoming Union Budget for 2016-17, the ministry expects additional Rs 15,000-20,000 crore over the current year's outlay of Rs 45,000 crore and is expecting an increased allocation for his ministry to speed up road construction.

The CNX Nifty is currently trading at 7580.75, up by 17.20 points or 0.23% after trading in a range of 7556.80 and 7600.45. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 3.60%, Cipla up by 3.38%, Larsen & Toubro up by 3.37%, Yes Bank up by 2.62% and ACC up by 2.54%. On the flip side, ICICI Bank down by 3.41%, Maruti Suzuki down by 2.80%, Bank of Baroda down by 2.51%, SBI down by 2.36% and Axis Bank down by 1.84% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted rose 11.75 points or 0.14% to 8,156.96, KOSPI Index increased 12.76 points or 0.67% to 1,924.82, FTSE Bursa Malaysia KLCI added 33.27 points or 2.04% to 1,667.80 and Nikkei 225 was up by 346.93 points or 1.98% to 17,865.23.

On the flip side, Hang Seng decreased 135.6 points or 0.69% to 19,547.51, Shanghai Composite dropped 79.64 points or 2.91% to 2,657.96 and Jakarta Composite was down by 25.25 points or 0.55% to 4,589.91.