Benchmarks trade in fine fettle in noon deals

Indian equity benchmark are trading in fine fettle in noon deals with frontline gauges recapturing their crucial 7,850 (Nifty) and 25,500 (Sensex) levels. Sentiments remained up-beat after the combined output of eight crucial infrastructure sectors jumped to a 16-month high of 6.4% in March due to a double-digit growth in refinery products, fertilizers, cement and electricity. Some support also came with a private report stating that the Indian economy is expected to clock a GDP growth of 7.4 percent this fiscal largely driven by the lagged impact of a good monsoon and increased consumer spending, supported by pay commission award.

Asian markets were exhibiting mixed trend amid dip in oil prices and weakening of the US dollar. However, rebound in the US equities has capped the downside. Back home, appreciation in Indian rupee too aided sentiments. Rupee strengthened by 20 paise to 66.24 against the US dollar in noon deals at the Interbank Foreign Exchange market on selling of the American currency by exporters amid foreign fund inflows. Shares of auto companies are trading firm on report that sales of passenger vehicles - cars, vans and utility vehicles - surged over 12 per cent in April, thanks to the popularity of newly-launched models and a low base effect. The industry is estimated to have sold 237,149 units in April this year.

The BSE Sensex is currently trading at 25572.73, up by 135.76 points or 0.53% after trading in a range of 25477.84 and 25705.96. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.38%, while Small cap index up by 0.97%.

The top gaining sectoral indices on the BSE were Telecom up by 2.34%, Industrials up by 1.68%, Realty up by 1.61%, Capital Goods up by 1.47% and Power up by 1.41%, while IT down by 0.25%, FMCG down by 0.18% and Consumer Durables down by 0.09% were the few losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 3.17%, Bharti Airtel up by 2.89%, Asian Paints up by 2.58%, Tata Motors up by 2.57% and Larsen & Toubro up by 2.38%. On the flip side, Lupin down by 1.25%, Sun Pharma down by 1.12%, Dr. Reddys Lab down by 1.04%, Coal India down by 0.90% and Hindustan Unilever down by 0.82% were the top losers.

Meanwhile, the government has given its approval for seven foreign direct investment (FDI) proposals amounting Rs 517.57 crore, based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 233rd meeting held on April 8. The proposals include that of Helix Investment Holding, Alchymers ICM, Prime Living and Gulf Quarry.

The largest FDI proposal to be cleared was from Singapore-based Helix Investment Holding in the pharmaceutical sector worth Rs 475.31 crore. The company sought approval to invest 20 per cent in the equity of Concord Biotech by subscribing to equity shares and purchasing equity shares from existing shareholders.  Further, Alchymars ICM SM proposal worth Rs 22.3 crore for increasing foreign equity participation from 57.15 per cent to 100 per cent by way of transfer of equity shares from resident shareholder to Gen Phar Pro Investments (GB), a UK company, by amending earlier approvals, also got the green signal.

Prime Livings’s proposal worth Rs 3.43 crore in the construction sector seeking post facto approval for the issuance of 10,56,938 equity shares at issue price of Rs 32.50 was also cleared. Other proposals that were cleared include Jupiter Corporate Services in the defence sector, Elite Screens lndia in Wholesale trading, One Market India LLP in limited liability partnership and Gulf Quarry General Trading FZC in manufacturing.

Further, five FDI proposals were deferred viz, Ordain Health Care Global, lndian Rotorcraft, Tikona Digital Networks, Menon Bearings and Sharekhan, while three proposals of Malladi Drugs and Pharmaceuticals, Athena Chhattisgarh and Mount Kailash Shipping were rejected.

The CNX Nifty is currently trading at 7850.35, up by 44.45 points or 0.57% after trading in a range of 7820.95 and 7890.25. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 4.89%, Tata Power up by 4.21%, Tata Motors up by 4.05% and Adani Ports & Special up by 3.43% and Bharti Airtel up by 3.06%. On the flip side, Lupin down by 1.49%, Dr. Reddys Lab down by 1.14%, Sun Pharma down by 1.14%, BPCL down by 0.92% and Coal India down by 0.87% were the top losers.

Asian markets were trading mixed; KOSPI Index increased 8.26 points or 0.42% to 1,986.41, Jakarta Composite gained 20.46 points or 0.43% to 4,828.78 and Shanghai Composite was up by 44.68 points or 1.52% to 2,983.00. On the flip side, Hang Seng decreased 216.72 points or 1.03% to 20,850.33, Taiwan Weighted dropped 83.78 points or 1% to 8,294.12 and FTSE Bursa Malaysia KLCI was down by 21.9 points or 1.31% to 1,650.82.