Markets continue to trade in green in early noon session

Indian equity bourses continued to trade in green in early noon session on the back of value buying by investors in the blue chip counters amid firm cues from the Asian markets. Some support came in with private report that India's net FDI flows are expected to rise further this fiscal to $38 billion on emergence of some ‘positive signs’ such as regulatory easing in select sectors and reform measures initiated by the government. Net FDI flows in 2015-2016 stood at around $36 billion as against $31 billion for 2014-2015. Appreciation in the rupee against dollar, which rebounded from a 2-1/2 month low, too supported market sentiment. However, upside remained capped due to selling in the Realty, IT and TECK stocks. Further, sentiment was dampened with the slip in crude oil prices and prospects of early interest rate hike by the US Federal Reserve in June.

On the global front, Japanese stocks fell and other Asian markets were trading mostly higher after a global finance meeting failed to yield fresh ideas for spurring global growth, and Tokyo reported weaker exports. Back home, in scrip specific development, share of Somany Ceramics rallied over 9% after the company reported a strong 76% year on year (YoY) growth in net profit at Rs 26 crore for the quarter ended March 31, 2016 (Q4FY16). Net sales grew by 12.7% at Rs 514 crore on YoY basis. The BSE Sensex is currently trading at 25332.29, up by 30.39 points or 0.12% after trading in a range of 25300.48 and 25519.26. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.29%.

The top gaining sectoral indices on the BSE were FMCG up by 1.40%, Power up by 0.77%, Consumer Durables up by 0.71%, Metal up by 0.57% and Auto up by 0.33%, while Realty down by 0.65%, IT down by 0.60%, TECK down by 0.38%, Oil & Gas down by 0.05% and Capital Goods down by 0.00% were the losing indices on BSE.

The top gainers on the Sensex were ITC up by 3.42%, Adani Ports &Special up by 1.80%, Tata Motors up by 1.07%, Hindustan Unilever up by 0.90% and ICICI Bank up by 0.70%. On the flip side, Sun Pharma Inds. down by 1.31%, Bajaj Auto down by 1.16%, ONGC down by 1.10%, Cipla down by 1.08% and Infosys down by 1.02% were the top losers.

Meanwhile, in order to deepen their ties, India and Oman has signed four key agreements in the critical sector with focus on enhancing military cooperation. The pacts were signed during the recent visit of India’s Defence Minister Manohar Parrikar to Oman. The agreements included defence co-operation, marine crime prevention, maritime issues and flight safety information exchange.

Defence Minister during his visit discussed all aspects of bilateral defence cooperation including enhanced military to military exchanges, besides, both sides also exchanged views on regional developments of mutual interest. It was agreed that the two sides would further expand and consolidate their ongoing bilateral defence cooperation.

Further, Parrikar reiterated the high importance that India attaches to its strategic partnership with Oman and further conveyed his appreciation at the continued support rendered by Oman for the Operational Turnaround (OTR) of Indian Navy ships for anti-piracy patrols as well as technical support for landing and overflight of IAF planes.

The CNX Nifty is currently trading at 7767.20, up by 17.50 points or 0.23% after trading in a range of 7756.30 and 7820.60. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were ITC up by 3.22%, Bharti Infratel up by 2.07%, Power Grid up by 2.00%, Tata Power up by 1.95% and Ambuja Cement up by 1.94%. On the flip side, Sun Pharma down by 1.27%, ONGC down by 1.20%, Cipla down by 1.14%, Infosys down by 0.97% and SBI down by 0.96% were the top losers.

Asian markets were trading mostly higher; FTSE Bursa Malaysia KLCI increased 1.32 points or 0.08% to 1,630.11, Shanghai Composite increased 6.12 points or 0.22% to 2,831.60, KOSPI Index increased 7.58 points or 0.39% to 1,955.25, Hang Seng increased 20.93 points or 0.11% to 19,873.13, Jakarta Composite increased 26.08 points or 0.55% to 4,737.96 and Taiwan Weighted increased 213.18 points or 2.62% to 8,344.44, while Nikkei 225 decreased 86.99 points or 0.52% to 16,649.36.