Markets trade in fine fettle in noon deals; Sensex regains 24,500 mark

Indian equity benchmarks are trading in fine fettle in noon deals with frontline gauges recapturing their crucial 24,500 (Sensex) and 7,450 (Nifty) levels. Sentiments remained up-beat with the International Monetary Fund (IMF) projecting a robust growth rate of 7.3 percent for the country this fiscal, picking up to 7.5 percent next year. Traders shrugged off weak services PMI data. Growth in India's services firms fell to a three-month low of 51.4 in February from 54.3 in January, as output rose only marginally. The seasonally adjusted Nikkei/Markit Services Purchasing Managers’ Index (PMI) had experienced a 19 month high rate of growth in January, marking a seventh month above the 50-level that separates growth from contraction.

Global cues too were aiding sentiments with Asian markets were trading in green at this point of time, buoyed by improving US economic data and prospects for further stimulus in China. Closer home, buying in power stocks too aided sentiments after a report compiled by WEF ranked India at the 90th place in a list of 126 countries, on the basis of their ability to deliver secure, affordable and sustainable energy. The railways stocks continue to trade higher for yet another day after the Cabinet approved a cooperation pact between railways and Japan. The broader indices were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,416 shares on the gaining side against 913 shares on the losing side while 118 shares remain unchanged.

The BSE Sensex is currently trading at 24504.21, up by 261.23 points or 1.08% after trading in a range of 24383.28 and 24518.54. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.04%, while Small cap index up by 0.75%.

The top gaining sectoral indices on the BSE were Metal up by 2.89%, Capital Goods up by 2.53%, Industrials up by 2.18%, Basic Materials up by 1.89% and Auto up by 1.62%, while Bankex down by 0.12% was the lone losing indices on BSE.

The top gainers on the Sensex were BHEL up by 5.55%, Tata Steel up by 5.52%, Tata Motors up by 4.92%, Larsen & Toubro up by 3.76% and Dr. Reddys Lab up by 3.64%. On the flip side, ICICI Bank down by 1.07%, Lupin down by 0.49%, Maruti Suzuki down by 0.32%, SBI down by 0.14% and ITC down by 0.05% were the top losers.

Meanwhile, the government’s proposal in the revised draft policy unveiled on October 30, 2015 to levy a 2 per cent cess on domestic and international tickets to mop up funds for its regional connectivity scheme that would have led to a hike in air fares is likely to be dropped. Civil Aviation Secretary R N Choubey has said that other means to raise funds for boosting regional air connectivity are being explored after the conclusion of discussions with stakeholders.

He said that the Ministry had received the stakeholders' comments and hence the ways in which the funds required for viability gap funding will be raised are being explored. After taking comments from all stakeholders including airlines, airport operators, general aviation firms, ground-handling agencies, among others, a group of ministers under Union Home Minister Rajnath Singh had discussed the draft policy late last month.

The government had earlier planned to levy the proposed cess from January this year. However, it was deferred due to its failure to finalise the draft civil aviation policy. Choubey also said that the draft civil aviation policy is expected to be taken to the Union Cabinet for its approval by the end of this month. The draft policy proposes providing viability gap funding for airlines for regional connectivity, setting up of no-frills airports, making India as a hub for maintenance, repair and overhaul (MRO) industry besides various tax sops to spur the growth of the industry, among others. Besides, the policy also proposes capping of airfares at Rs 2,500 for one-hour flight under regional connectivity scheme for places that are un-served currently as well as auctioning of bilateral rights. Regional Connectivity Scheme is one of the thrust areas of the draft policy. Choubey said that regional connectivity can't take place unless there was 'collective' money to do so.

The CNX Nifty is currently trading at 7437.00, up by 68.15 points or 0.92% after trading in a range of 7406.05 and 7447.45. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were BHEL up by 5.77%, Vedanta up by 5.69%, Tata Steel up by 5.48%, Hindalco up by 4.87% and Tata Motors up by 4.78%. On the flip side, Zee Entertainment down by 2.53%, Bank of Baroda down by 1.31%, Yes Bank down by 1.29%, BPCL down by 1.25% and ICICI Bank down by 1.16% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite rose 1.43 points or 0.05% to 2,851.11, FTSE Bursa Malaysia KLCI gained 4.64 points or 0.27% to 1,695.67, KOSPI Index strendthened 10.75 points or 0.55% to 1,958.17, Jakarta Composite increased 23.28 points or 0.48% to 4,859.48, Taiwan Weighted added 67.74 points or 0.79% to 8,611.79 and Nikkei 225 was up by 213.61 points or 1.28% to 16,960.16. On the flip side, Hang Seng was down by 111.81 points or 0.56% to 19,891.68.