Markets add gains in a steady trade

Indian markets have strengthened further, showing a steady trade with major averages gaining momentum along with other Asian peers, after oil prices stabilized. While the Sensex was above 24500 mark, the Nifty50 was trading above its crucial support level of 7450, supported by gains in banks, consumer durable, auto, capital goods, and FMCG stocks.  Traders were also encouraged with the report that foreign direct investment (FDI) in the country more than doubled to about $ 4.5 billion in December 2015, compared to $2.16 billion in December 2014. The IT sector stocks too were moving higher despite industry body Nasscom stating that export growth in the country's IT-BPO sector is expected to be slower at 10-12 percent next fiscal hit by currency fluctuations, especially the weakening of the rupee against the US dollar. Last year, the IT services and software industry body had forecast a growth of 12-14 percent in exports. Meanwhile, Indian rupee weakened against the dollar on Friday in early trade on fresh demand for the American currency from importers and banks.

The BSE Sensex is currently trading at 24535.31, up by 196.88 points or 0.81% after trading in a range of 24345.79 and 24606.00. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices too were trading in green; the BSE Mid cap index was up by 1.01%, while Small cap index gained 0.66%.

The top gaining sectoral indices on the BSE were Bankex up by 1.61%, Metal up by 1.22%, FMCG up by 1.05%, Auto up by 0.80%, PSU up by 0.74%, while there were no losing indices on the BSE.

The top gainers on the Sensex were Axis Bank up by 3.74%, Tata Motors up by 2.21%, Sun Pharma Inds. up by 2.02%, Hero MotoCorp up by 2.01% and SBI up by 1.93%. On the flip side, GAIL India down by 2.21%, Maruti Suzuki down by 1.47%, Adani Ports & SEZ down by 0.77%, Tata Steel down by 0.75% and NTPC down by 0.24% were the top losers.

Meanwhile, amid global slowdown, Finance Minister Arun Jaitley met sovereign wealth funds from Singapore and the UAE and has pitched for a stable policy regime and resilience of Indian economy. Jaitley highlighted opportunities the country presents to investors and sought investment in sectors like road, highways, oil & gas, urban infrastructure and railways and invited foreign capital in these sectors.

Jaitley held a discussion with several potential investors including European investment banks and sovereign funds of countries like Singapore and the UAE and highlighting investment opportunities India offers, Jaitley said with one-sixth of the world population and largest the largest middle class, there are huge opportunities.

Addressing the two-day India Investment Summit 2016, the Minister showing concern about the challenges before India said that the greatest challenge is to re establish the credibility of Indian markets and also said in order to establish the credibility of Indian economy it is important that the country not only reform but continue reform only in one direction. Jaitley further said that the decision making has been speeded up and hurdles which was there in the investment process has been sliced away.

Meanwhile, expressing his confidence on passage of Goods and Services Tax (GST) bill, Jaitley said that GST has been supported by most political parties and hoped that the opposition parties will 'see reason' and it will become a reality soon.

The CNX Nifty is currently trading at 7468.30, up by 64.30 points or 0.87% after trading in a range of 7406.65 and 7485.00. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.61%, Vedanta up by 3.17%, Tata Motors up by 2.30%, Hindalco up by 2.26% and Tata Power up by 2.20%. On the flip side, GAIL India down by 2.32%, Maruti Suzuki down by 1.27%, Adani Ports &Special down by 1.23%, Tata Steel down by 0.75% and Bosch down by 0.35% were the top losers.

The Asian markets were showing mixed trend, KOSPI Index was up by 1.85 points or 0.1% to 1,918.11, FTSE Bursa Malaysia KLCI gained 5.83 points or 0.35% to 1,662.60, Hang Seng increased by 101.68 points or 0.53% to 19,284.77 and Jakarta Composite surged by108.86 points or 2.33% to 4,774.68.

On the other hand, Nikkei 225 slumped by 339.81 points or 1.99% to 16,705.18, Taiwan Weighted lost 68.24 points or 0.84% to 8,063.00 and Shanghai Composite was down by 5.49 points or 0.2% to 2,775.53.