Benchmarks continue to trade firm amid buying in metal and banking stocks

Indian equity benchmarks continued to trade firm in early noon session led by gains in frontline blue chip counters such as Metal, Bankex, FMCG, Auto and PSU among others. Besides, a firm trend in other Asian markets and overnight gains in the US markets too were supporting the markets. Sentiment further got improved with the report that foreign direct investment (FDI) in the country has more than doubled to about $4.5 billion in December 2015, compared to $2.16 billion in December 2014. Meanwhile, broader markets were broadly in-line with the benchmark indices. The BSE mid-cap index advanced 1.22 percent and small-cap index jumped 0.76 percent.

On the global front, Asian stock markets were uneven on Friday as investor’s awaited U.S. job numbers that could influence how much the Fed raises interest rates this year. Back home, both the Sensex and Nifty were trading above their crucial 24,500 and 7,450 levels, respectively. In scrip specific development, shares of Sequent Scientific were trading higher over 8% after the company’s wholly owned subsidiary -- Alivira Animal Health commenced the production in the Vizag facility.

The market breadth was positive as 1348 stocks were advancing while 823 were declining.

The BSE Sensex is currently trading at 24531.79, up by 193.36 points or 0.79% 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 were trading in green; the BSE Mid cap index was up by 1.22%, while Small cap index up by 0.76%.

The gaining sectoral indices on the BSE were Metal up by 2.09%, Bankex up by 1.55%, FMCG up by 1.09%, Auto up by 0.90%, PSU up by 0.84%

The top gainers on the Sensex were Axis Bank up by 3.08%, Hindustan Unilever up by 2.32%, Tata Motors up by 2.27%, SBI up by 2.15% and Sun Pharma Inds. up by 2.01%. On the flip side, GAIL India down by 2.50%, Maruti Suzuki down by 1.00%, Adani Ports &Special down by 0.79%, NTPC down by 0.16% and ONGC down by 0.14% were the top losers.

Meanwhile, India has received $4.5 billion foreign direct investment (FDI), recording a whopping 114 percent growth during December 2015 which is more than double against the same period in 2014. During the period, the sectors which attracted FDI include computer software and hardware, trading, services, automobile and telecommunications. India receives maximum FDI from Singapore, Mauritius, the Netherlands and Japan. India had received $2.16 billion in December 2014.

Commerce and Industry Minister Nirmala Sitharaman has said that India is seen as one of the best places to invest, as Foreign investment in India is growing at 38 per cent even as it has witnessed a decline of 16 per cent at the global level.

In order to boost FDI in the country, the government has relaxed FDI norms in as many as 15 sectors, including Defence, single brand retail, construction development, civil aviation and limited liability partnerships (LLPs). India needs around $1 trillion foreign Investments in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. In 2014-15, foreign fund inflows grew 27 percent to $30.93 billion as against $24.29 billion in 2013-14.

The CNX Nifty is currently trading at 7472.20, up by 68.20 points or 0.92% 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 Vedanta up by 6.57%, Hindalco up by 3.93%, Axis Bank up by 2.86%, Ultratech Cement up by 2.69% and Hindustan Unilever up by 2.40%. On the flip side, GAIL India down by 2.77%, Adani Ports &Special down by 1.25%, Maruti Suzuki down by 1.05%, Power Grid down by 0.24% and Mahindra & Mahindra down by 0.08% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 1.97 points or 0.07% to 2,782.99, KOSPI Index increased 3.82 points or 0.2% to 1,920.08, FTSE Bursa Malaysia KLCI increased 5.83 points or 0.35% to 1,662.60, Jakarta Composite increased 108.86 points or 2.33% to 4,774.68 and Hang Seng increased 140.28 points or 0.73% to 19,323.37, while Nikkei 225 decreased 369.28 points or 2.17% to 16,675.71 and Taiwan Weighted decreased 68.24 points or 0.84% to 8,063.00.