Benchmark indices trade off day’s high; Nifty holds 7150 mark

Key benchmark indices are trading off the day’s high in afternoon trade as investors opted to take some of their profit at higher levels. However, markets still managed to trade above their crucial 7,150 (Nifty) and 23,550 (Sensex) bastions. Sentiments remained up-beat after Moody's Investors Service said 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. The buying activity mainly picked up momentum mostly in step with a firming trend in other Asian markets. Asian markets were rallying at this point of time as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets.

Closer home, shares of oil exploration & production companies such as Cairn India, Oil & Natural Gas Corporation (ONGC) and Oil India were trading higher on the bourses after a sharp surge in global crude oil prices. Buying in pharma space too aided sentiments on report that department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers is expected to come out with a new bulk drug policy in less than a month with an objective to grow the Indian pharmaceuticals sector to a $200 billion industry by 2030. Meanwhile, the broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1455 shares on the gaining side against 796 shares on the losing side while 121 shares remain unchanged.

The BSE Sensex is currently trading at 23577.45, up by 195.58 points or 0.84% after trading in a range of 23536.47 and 23735.35. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.44%, while Small cap index up by 0.98%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.16%, Healthcare up by 1.36%, IT up by 1.12%, TECK up by 1.08% and Oil & Gas up by 1.07%, while Power down by 0.12%, Utilities down by 0.08% and Telecom down by 0.07%, were the few losers on the index.

The top gainers on the Sensex were Dr. Reddys Lab up by 4.68%, ONGC up by 3.73%, Larsen & Toubro up by 3.69%, Hero MotoCorp up by 3.38% and ICICI Bank up by 2.78%. On the flip side, BHEL down by 1.75%, Maruti Suzuki down by 1.54%, Asian Paints down by 1.25%, HDFC down by 0.79% and Adani Ports &Special down by 0.71% were the top losers.

Meanwhile, Union Cabinet, chaired by Prime Minister Narendra Modi gave its ex post facto approval for memorandum of understanding (MoU) which India signed with various countries for cooperation in the field of agriculture and allied sectors.

The approval has been given to MoUs signed with 13 countries which include Netherlands, Nepal, Cyprus, Israel, Bangladesh, Cambodia, Tanzania, Surinam, Zambia, Syria, Bhutan, Chile and Mauritius. Expenditure incurred on implementation of such MoU is managed within the financial allocation made for the ministry.

These MoUs will help in capacity building, knowledge exchange through visits of scientists and technicians, exchange of genetic resources that aid in development of appropriate technologies and farm practices for enhancing agriculture productivity at farmers' field. Expertise and technology so developed is applied all over the country as per felt needs.

Under Transaction of Business Rules, 1961, cases involving negotiations with foreign countries on treaties, agreements and other important matters need to be brought before the Cabinet for approval. Earlier, prior approval under Rule 12 of the Transaction of Business Rules was obtained in certain cases and subsequent Cabinet approval could not be obtained. Therefore, ex-post-facto approval in respect of MoUs signed with 13 countries is being obtained.

The CNX Nifty is currently trading at 7158.15, up by 49.70 points or 0.70% after trading in a range of 7155.90 and 7215.10. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 4.57%, Cairn India up by 3.89%, Hindalco up by 3.88%, Larsen & Toubro up by 3.57% and ONGC up by 3.47%. On the flip side, Idea Cellular down by 2.31%, BHEL down by 2.08%, Asian Paints down by 1.75%, Maruti Suzuki down by 1.70% and Adani Ports &Special down by 1.18% were the top losers.

Asian markets were trading in green; Shanghai Composite rose 6.42 points or 0.22% to 2,873.76, FTSE Bursa Malaysia KLCI increased 13.92 points or 0.84% to 1,678.24, KOSPI Index surged 24.9 points or 1.32% to 1,908.84, Jakarta Composite gained 29.27 points or 0.61% to 4,794.78, Taiwan Weighted soared 100.42 points or 1.22% to 8,314.67, Nikkei 225 strengthened 360.44 points or 2.28% to 16,196.80 and Hang Seng was up by 376.64 points or 1.99% to 19,301.21.