Markets trade in green in early deals

After falling over a percent in previous session, Indian equity markets made a positive start and are trading higher by around a quarter percent in morning deals. Traders were getting encouragement with Moody's Investors Service, forecasting Indian economy to grow 7.5 percent in the current and next year and stating that the expansion is primarily driven by rising consumption and sustained improvement in private investment was needed to maintain the momentum. Meanwhile, Chinese media has said that the global attention India is receiving as a new investment destination is touching a “sensitive nerve” in China as the fast growing Indian consumer market may 'steal China thunder’.  Besides, some support also came in with Agriculture Secretary Shobhana K Patnaik stating that the delay in arrival of southwest monsoon by a week is unlikely to have any significant impact on sowing of kharif crops. However, upside remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 764.58 crore yesterday, as per provisional data released by the stock exchanges.

In the scrip specific development, Lupin plunged over 7 percent to Rs 1,525 on the BSE, on concerns about observations from the US drug regulator continue to remain an overhang for the stock.

On the global front, US markets ended lower on Thursday with the Dow Jones industrial average and the S&P 500 both touching roughly two-month lows before paring losses. Asian markets were mostly trading in green, shrugging off the weak cues overnight from Wall Street and European markets amid persistent concerns over the outlook for US interest rates. Meanwhile, crude oil rose in Asian trades, while the US dollar weakened against some Asian currencies.

Back Home, all the sectoral indices on the BSE, barring Realty, were trading in green led by IT, Capital Goods, FMCG, TECK and Consumer Durables. The market breadth on BSE was positive in the ratio of 800: 673 while 75 scrips remained unchanged.

The BSE Sensex is currently trading at 25464.58, up by 64.86 points or 0.26% after trading in a range of 25379.75 and 25498.95. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.31%, while Small cap index was down by 0.09%.

The top gaining sectoral indices on the BSE were IT up by 0.51%, Capital Goods up by 0.48%, FMCG up by 0.46%, TECK up by 0.43% and Consumer Durables up by 0.34%, while Realty down by 0.78% was the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 1.37%, ONGC up by 1.02%, NTPC up by 1.00%, Infosys up by 0.97% and ITC up by 0.95%. On the flip side, Lupin down by 5.57%, Cipla down by 2.07%, Bharti Airtel down by 0.93%, Maruti Suzuki down by 0.51% and Hindustan Unilever down by 0.28% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has issued revised guidelines allowing higher foreign direct investment (FDI) limits in credit information companies (CIC) which have an established track record of running a credit information bureau in a well regulated environment.

As per the RBI’s guidelines, up to 49% FDI would be allowed if ownership of the investor company is not well diversified. It stated that foreign direct investment of up to 100% would be allowed if ownership of investor company is well diversified. In case, the ownership is not well diversified, at least 50% of the directors of the investee CIC in India should be Indian nationals or non-resident Indians/persons of Indian origin subject to the condition that one third of the directors are Indian nationals resident in India. In case the investor entity is a wholly owned subsidiary of an investment holding company, the norms for FDI, FII and FPI shall be applied to the operating group company that is engaged in credit information business and has undertaken to provide technical know-how to the CIC in India.

The RBI further added that investment of foreign institutional investors/foreign portfolio investors should directly or indirectly hold below 10% equity. At present, investments, directly or indirectly by any person, whether resident or otherwise are limited to 10 per cent of the equity capital of a Credit Information Company (CIC). However, investments under FDI were permitted up to 74 per cent subject to the conditions stipulated in the Reserve Bank's directive. The Reserve Bank of India, revised the foreign investment limits in CICs from 74per cent to 100 per cent under automatic route, subject to certain conditions.

Currently, India has four credit information companies - CIBIL, Experian, Equifax and CRIF High Mark. A credit information company aggregates and analyses data of individuals and businesses and puts out a credit score which is an indicator of creditworthiness of that individual or business.

The CNX Nifty is currently trading at 7796.00, up by 12.60 points or 0.16% after trading in a range of 7773.40 and 7811.10. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 1.43%, Idea Cellular up by 1.26%, Tata Power up by 1.17%, NTPC up by 1.15% and Bosch up by 1.10%. On the flip side, Lupin down by 5.43%, Cipla down by 1.40%, Bharti Airtel down by 1.04%, BPCL down by 0.87% and Aurobindo Pharma down by 0.72% were the top losers.

Asian markets were trading mostly in green, KOSPI Index increased 1.52 points or 0.08% to 1,948.30, FTSE Bursa Malaysia KLCI increased 2.28 points or 0.14% to 1,636.04, Shanghai Composite increased 2.82 points or 0.1% to 2,809.72, Nikkei 225 increased 30.99 points or 0.19% to 16,677.65, Taiwan Weighted increased 52.97 points or 0.65% to 8,148.95 and Hang Seng increased 222.12 points or 1.13% to 19,916.45.

On the flip side, Jakarta Composite decreased 3.01 points or 0.06% to 4,701.20.