Markets continue to trade firm in early noon session

Indian equity benchmarks trimmed early gains but continue to trade higher in early noon session, on the back of buying in the frontline bluechip counters. Besides, a firm trend in other Asian bourses and overnight gains in the US markets too was supporting the markets. Sentiment got boost with Moody's Investors Service’s report that in the macro-economic front, Indian economy will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown and will benefit from lower commodity prices. Some support also come in from the report that India's current account deficit, which occurs when the value of imports and investments is larger than value of exports, is likely to narrow to 0.7 percent of GDP in the current financial year from 1.3 percent in FY15, owing to lower commodity prices. Meanwhile, railway sector-linked stocks rose after Cabinet Committee on Economic Affairs approved construction of six railway lines and a railway bridge.

On the global front, Asian markets were trading higher, as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets. Back home, both the Sensex and Nifty were trading above their crucial 23,600 and 7,150 level, respectively. In scrip specific development, shares of Glenmark Pharma were trading higher after the company has received the receipt of tentative approval from USFDA for its generic version of azelaic acid topical gel that is used for treating skin inflammation.

The BSE Sensex is currently trading at 23604.95, up by 223.08 points or 0.95% after trading in a range of 23536.47 and 23735.35. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.68%, while Small cap index up by 1.13%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.55%, Oil & Gas up by 1.20%, Metal up by 1.19%, IT up by 1.16% and TECK up by 1.11%, while they were no losers on the sectoral index.

The top gainers on the Sensex were Dr. Reddys Lab up by 5.03%, Larsen & Toubro up by 4.25%, ONGC up by 3.65%, Hero MotoCorp up by 3.36% and ICICI Bank up by 2.91%. On the flip side, BHEL down by 1.51%, Maruti Suzuki down by 1.30%, Asian Paints down by 1.12%, GAIL India down by 0.74% and HDFC down by 0.68% were the top losers.

Meanwhile, reflecting changes in global fuel prices, Oil Marketing Companies (OMCs) have slashed price of petrol by 32 paise per litre and have hiked diesel rates by 28 paise a litre. The new rates are effective from midnight February 17 / February 18. Following the revision, the price of petrol in the National Capital will be Rs 59.63 per litre as against Rs 59.95 a litre currently while diesel will be priced at Rs 44.96 per litre as compared to Rs 44.68 currently.

This is the sixth straight reduction in price of petrol on softening international rates. But in case of diesel, the hike snapped a three-month declining trend. In the last revision on February 1, the price of petrol was cut by 4 paise a litre while that of diesel was lowered by 3 paise a litre after the government raised excise duty to take away most of the benefit arising from fall in international oil prices.

PSU oil marketing companies Indian Oil Corporation, Bharat Petroleum Corp and Hindustan Petroleum Corp revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rates in the previous fortnight. The revision was due on February 16 but the retailers choose to defer the revision.

The oil companies have said that the movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.

The CNX Nifty is currently trading at 7172.25, up by 63.80 points or 0.90% after trading in a range of 7162.95 and 7215.10. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.02%, Dr. Reddys Lab up by 4.91%, Cairn India up by 4.73%, Larsen & Toubro up by 4.05% and ONGC up by 3.49%. On the flip side, BHEL down by 2.13%, Idea Cellular down by 1.30%, Asian Paints down by 1.29%, Maruti Suzuki down by 1.21% and GAIL India down by 0.99% were the top losers.

Asian markets were trading in green; Shanghai Composite increased 9.38 points or 0.33% to 2,876.72, FTSE Bursa Malaysia KLCI increased 14.02 points or 0.84% to 1,678.34, KOSPI Index increased 24.9 points or 1.32% to 1,908.84, Jakarta Composite increased 27.34 points or 0.57% to 4,792.84, Taiwan Weighted increased 100.42 points or 1.22% to 8,314.67, Nikkei 225 increased 361.85 points or 2.28% to 16,198.21 and Hang Seng increased 420.58 points or 2.22% to 19,345.15.