Markets continue to trade in high spirit in early noon session

Indian equity benchmarks continued to trade in high spirit in early noon session, on the back of sustained buying by fund and retail investors in the blue-chip counters such as Realty, Oil & Gas, Capital Goods and Metal amid positive global cues. Further, hopes of rate cut by the RBI at its monetary policy review on April 5 too accelerated buying activity. Sentiment got a boost with the Finance Minister’s statement that he will reach out to the Congress again to persuade it to support the much delayed GST bill in second half of the Budget Session beginning next month. However, investors remained cautious ahead of the March series futures and options contracts expiry on Thursday. Meanwhile, shares of sugar manufacturing companies were trading higher on the bourses on expectations of lower production for sugar season 2016-17.

On the global front, Asian markets were trading mostly in green as markets scaled back expectations for how fast and how far U.S. interest rates might rise this year, bruising the dollar and boosting sovereign bonds. Back home, broader markets were outperforming the benchmark indices. BSE Midcap and Smallcap indices were trading up 1.19% and 1.45% respectively. In scrip specific development, shares of Jindal Steel and Power were trading higher after reports emerged that company is in advance talks to sell its rail mill unit.

The BSE Sensex is currently trading at 25139.99, up by 239.53 points or 0.96% after trading in a range of 25055.42 and 25157.53. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.19%, while Small cap index up by 1.45%.

The top gaining sectoral indices on the BSE were Realty up by 2.31%, Oil & Gas up by 2.10%, Capital Goods up by 1.76%, Metal up by 1.71% and Power up by 1.47%, while they were no losers on the sectoral index. 

The top gainers on the Sensex were Lupin up by 3.28%, GAIL India up by 3.27%, ICICI Bank up by 2.78%, Adani Ports &Special up by 2.71% and Bajaj Auto up by 2.49%. On the flip side, HDFC down by 0.91%, Maruti Suzuki down by 0.76% and Bharti Airtel down by 0.59% were the top losers.

Meanwhile, India Inc has raised $1.35 billion from overseas markets in February 2016 down 40.2 percent compared to that of $2.26 billion raised in the corresponding year ago period, according to Reserve Bank of India (RBI) data. The borrowings in a combination of automatic and approval route were done by way of external commercial borrowing (ECBs).

Out of the total borrowings during the month, $1.02 billion were raised through automatic route while $330 million came via approval route. Only one firm, Bharat Petroleum Corporation raised the entire $330 million through the approval route that was meant to be used for refinancing company’s earlier ECB.

Among major borrowers through automatic route, NTPC raised $500 million for power projects, Maxxis Rubber India raised $50 million for rupee Expenditure, Stelis Biopharma raised $47 million for new project, Sintex Industries and JK Tyre & Industries raised $35 million each for modernisation works, Rain Industries raised $30 million for overseas acquisition and Fresenius Kabi Oncology raised $29.02 million for general corporate purpose.

The CNX Nifty is currently trading at 7672.05, up by 75.05 points or 0.99% after trading in a range of 7643.45 and 7678.85. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 3.88%, BPCL up by 3.50%, GAIL India up by 3.28%, Lupin up by 3.27% and Hindalco up by 2.90%. On the flip side, Zee Entertainment down by 1.15%, Maruti Suzuki down by 0.91%, HDFC down by 0.80%, Bharti Airtel down by 0.47% and Kotak Mahindra Bank down by 0.08% were the top losers.

Asian markets were trading mostly in higher; FTSE Bursa Malaysia KLCI increased 3.74 points or 0.22% to 1,718.78, KOSPI Index increased 7.23 points or 0.36% to 2,002.14, Jakarta Composite increased 27.66 points or 0.58% to 4,808.96, Shanghai Composite increased 55.66 points or 1.91% to 2,975.49, Taiwan Weighted increased 119.69 points or 1.39% to 8,737.04 and Hang Seng increased 302.88 points or 1.49% to 20,669.18, while Nikkei 225 decreased 207.07 points or 1.21% to 16,896.46.