Markets trade flat with positive bias in early noon session

Indian equity benchmarks are trading in range bound with marginal gains in early noon session on account of buying by investors in some selects blue chip stocks such banks and Pharma. Sentiment got some support with United Nations' report on Asia-Pacific that indicate Indian economy is likely to maintain its growth at 7.6 percent in 2016 and accelerate to 7.8 percent in 2017 led by high urban spending, steady employment and low inflation. However, gains remained capped with the report that the country's current account deficit is likely to widen modestly to $25 billion in the current fiscal from $20 billion last year on rising demand for gold and sluggishness in exports.

On the global front, Asian markets were trading in red, with Bank of Japan holding back on additional stimulus and worries about global economic growth. Back home, in scrip specific development, share of Diamond Power Infrastructure has locked in upper circuit of 9.93% at Rs 45.40 on the BSE after the company’s board approved the allotment of 12 million equity shares at price of Rs 55 each to promoters on preferential basis. Dabur India was trading higher after the company reported a 16.56 percent increase in consolidated net profit at Rs 331.93 crore for the fourth quarter ended March 31, 2016. The company had reported a net profit of Rs 284.76 crore in the January-March quarter of 2014-15.

The BSE Sensex is currently trading at 25621.32, up by 18.22 points or 0.07% after trading in a range of 25529.59 and 25755.43. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.01%, while Small cap index down by 0.01%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.28%, FMCG up by 0.20%, Power up by 0.20%, PSU up by 0.20% and Bankex up by 0.16%, while TECK down by 0.39%, Consumer Durables down by 0.29%, Auto down by 0.29%, Capital Goods down by 0.22% and IT down by 0.22% were the losing indices on BSE.

The top gainers on the Sensex were Lupin up by 1.93%, Cipla up by 1.44%, Axis Bank up by 1.12%, Coal India up by 0.81% and Sun Pharma Inds. up by 0.68%. On the flip side, Bharti Airtel down by 1.96%, Mahindra & Mahindra down by 1.11%, GAIL India down by 0.89%, ICICI Bank down by 0.83% and Asian Paints down by 0.82% were the top losers.

Meanwhile, India Inc has raised $1.52 billion from overseas markets in March 2016, down 43 percent as compared to that of $2.66 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, $1.32 billion were raised through automatic route while $201.05 million came via approval route.

Out of the total 80 borrowers, three raised the money through approval route, while the rest by the way of automatic route. Through approval route, Adani Ports and SEZ raised $159.55 million for refinancing of earlier external commercial borrowing; Air India borrowed $38.09 million for import of capital goods and Tasty Bite Eatables raised $3.41 million for other purposes through the approval route.

For automatic category, major borrowers include Chambal Fertilisers and Chemicals who raised $425 million for modernisation projects, General Motors India raised $164.72 million for general corporate purpose. Rural Electrification Corporation raised $120 million for refinancing of earlier ECB.

The CNX Nifty is currently trading at 7855.15, up by 7.90 points or 0.10% after trading in a range of 7821.80 and 7889.05. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Lupin up by 2.07%, Zee Entertainment up by 1.68%, Kotak Mahindra Bank up by 1.46%, Cipla up by 1.32% and Axis Bank up by 1.26%. On the flip side, Idea Cellular down by 5.38%, HCL Tech. down by 5.01%, Bharti Airtel down by 1.88%, Hindalco down by 1.86% and Mahindra & Mahindra down by 1.25% were the top losers.

Asian markets were trading in red; Hang Seng decreased 263.54 points or 1.23% to 21,124.49, Taiwan Weighted decreased 95.97 points or 1.13% to 8,377.90, Jakarta Composite decreased 17.83 points or 0.37% to 4,830.56, KOSPI Index decreased 6.78 points or 0.34% to 1,994.15, FTSE Bursa Malaysia KLCI decreased 5.92 points or 0.35% to 1,668.84 and Shanghai Composite decreased 0.71 points or 0.02% to 2,944.88.