Firm trade prevails at highest point of the day

Indian equity benchmarks added strength hovering near the highest point of the day in the late afternoon session on sustained buying by funds and retail investors amid firm overseas cues. The sentiments remained up-beat after foreign brokerage firm upgraded India to overweight from equal weight. The firm reported that valuations of Indian markets have become more attractive as compared to other emerging markets. Traders were seen piling position in Bankex, Capital Goods and IT sector stocks. In scrip specific development, Cipla was trading in red after the company’s March quarter numbers came below market expectations. The company yesterday reported a consolidated net profit of Rs 80.87 crore for the fourth quarter ended March 31, 2016. The company had posted a net profit after minority interest and share of profit/loss of the associates of Rs 259.66 crore for the corresponding period of the previous fiscal. Ruchi Soya Industries was trading in red after SEBI barred the company from the securities market for alleged fraudulent and manipulative in trading in castor seeds at the NCDEX. The market may remain volatile this week as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. May 2016 series to next month i.e. June 2016 series. The near month May 2016 derivatives contracts will expire on Thursday i.e. May 26, 2016.

On the global front, the Asian markets were trading mostly in green while the European markets traded on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,900 and 25,700 levels respectively. The market breadth on BSE was positive in the ratio of 1520:884 while 173 scrips remained unchanged.

The BSE Sensex is currently trading at 25782.10, up by 476.63 points or 1.88% after trading in a range of 25430.59 and 25792.99. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.99%, while Small cap index up by 0.92%.

The gaining sectoral indices on the BSE were Bankex up by 2.59%, Capital Goods up by 2.55%, IT up by 2.04%, TECK up by 2.00%, Auto up by 1.91%.

The top gainers on the Sensex were Bajaj Auto up by 4.34%, ICICI Bank up by 3.88%, BHEL up by 3.53%, Larsen & Toubro up by 3.35% and Maruti Suzuki up by 3.32%.

On the flip side, Cipla down by 5.76% were the top losers.

Meanwhile, talking about the last two years of the government in office, the Union Minister of State for Labour and Employment, Bandaru Dattatreya has reiterated that governments’ paramount priority is the welfare of workers and its endeavor is to achieve Employment Security, Wage Security and Social Security to every worker especially the unorganised workers who constitute 93% of our workforce.

Dattatreya said that the Ministry of Labour and Employment have initiated process of reforming the archaic labour laws to create a conducive, cordial and harmonious environment in the country. Towards this Ministry is simplifying the 43 Labour Laws into 4 Labour Codes which aims to amalgamate and rationalize the provisions of these 43 Labour Laws.

The Minister also said that the government is implementing National Career Service (NCS) Project for transforming and strengthening the public employment services in the country with an aim to bring job seekers, employers and training providers on a common platform with efficient use of information technology. National Career Service (NCS) Project aims to address the gaps in the employment market by strategic interventions and partnership with leading institutions and organizations.

On Reforms through Technology, the Minister said a unified Web Portal ‘Shram Suvidha Portal’ was laubnched, to bring transparency and accountability in enforcement of labour laws and ease complexity of compliance. It caters to four major Organizations under the Ministry of Labour, namely Office of Chief Labour Commissioner (Central), Directorate General of Mines Safety, Employees’ Provident Fund Organization; and Employees’ State Insurance Corporation.

The CNX Nifty is currently trading at 7904.10, up by 155.25 points or 2.00% after trading in a range of 7809.30 and 7909.75. There were 49 stocks advancing against 1 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 8.39%, Bajaj Auto up by 4.53%, IndusInd Bank up by 4.46%, ICICI Bank up by 3.76% and Maruti Suzuki up by 3.28%.

On the flip side, Cipla down by 5.53% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 22.83 points or 1.18% to 1,960.51, Jakarta Composite increased 46.4 points or 0.99% to 4,757.19, Taiwan Weighted increased 95.54 points or 1.15% to 8,396.20, Nikkei 225 increased 258.59 points or 1.57% to 16,757.35 and Hang Seng increased 537.62 points or 2.71% to 20,368.05.

On the other hand, Shanghai Composite decreased 6.58 points or 0.23% to 2,815.09 and FTSE Bursa Malaysia KLCI decreased 1.37 points or 0.08% to 1,624.47.

The European markets were trading in green; UK’s FTSE 100 increased 40.29 points or 0.65% to 6,259.55, France’s CAC increased 33.84 points or 0.76% to 4,465.36 and Germany’s DAX increased 110.21 points or 1.1% to 10,167.52.