Markets continue to trade firm in early noon session

Indian equity benchmarks continued to trade firm in early noon session on account of sustained buying by fund and retail investors in the front line blue chip counters. Sentiment remained upbeat as oil advanced to $50 a barrel for the first time this year as US industry data showed a decline in stockpile. The G7 summit in Japan to take stock of the global economy also infused a sense of confidence. Besides, short-covering by market participants ahead of May F&O derivatives expiry today too maintained uptrend in the markets. Meanwhile, capital goods index surged as the government has approved Capital Goods Policy that seeks to reduce reliance on imported equipment by incentivising domestic production and in the process creating crores of jobs. The policy seeks to increase production of capital goods from Rs 2.3 lakh crore in 2014-15 to Rs 7.5 lakh crore in 2025 and also raise direct and indirect employment from the current 84 lakh to three crore.

On the global front, Asian markets were trading mostly lower, with worries about US interest rates and China's slowing economy keeping investors on the sidelines. Back home, in scrip specific development, share of Sharda Cropchem is locked in the upper circuit of 20% on the BSE, after the company reported a net profit of Rs 106 crore for the fourth quarter ended March 2016 (Q4FY16), on the back of strong operational income. The company engaged in agrochemicals business had made a profit of Rs 48 crore in a year ago quarter. Indo Tech Transformers is locked in upper circuit of 20% on the BSE after the company reported net profit of Rs 10 crore in March 2016 quarter (Q4FY16) owing to rise in demand from its customer and better market conditions. The company engaged in sale of transformers had profit of Rs 1 crore in a year ago quarter.

The BSE Sensex is currently trading at 26035.59, up by 154.42 points or 0.60% after trading in a range of 25941.51 and 26068.61. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.32%, while Small cap index up by 0.36%.

The top gaining sectoral indices on the BSE were Capital Goods up by 6.19%, Power up by 0.55%, IT up by 0.50%, TECK up by 0.50% and Auto up by 0.47%, while Metal down by 0.21%, Consumer Durables down by 0.07% and Realty down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 10.00%, Adani Ports &Special up by 2.16%, BHEL up by 2.04%, SBI up by 1.34% and GAIL India up by 1.18%. On the flip side, Sun Pharma Inds. down by 1.26%, HDFC down by 1.00%, NTPC down by 0.56%, Coal India down by 0.46% and Tata Steel down by 0.46% were the top losers.

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) at its meeting chaired by Prime Minister Narendra Modi has cleared Railway projects worth Rs 10,736 crore for improving infrastructure. The projects, including three for doubling of existing rail lines and two for laying a third rail line on busy routes are in various states, including poll bound Uttar Pradesh and Gujarat.

In Gujarat the CCEA has given approval for doubling of Surendranagar-Rajkot project at an estimated cost of Rs 1,002.39 crore with expected completion cost of Rs 1,137.17 crore with 5 per cent escalation per annum. The length of the railway line will be 116.17 kms. The completion period of the project will be four years. Railway Minister Suresh Prabhu has said that the doubling of this line will greatly ease the ever increasing freight traffic between Okha-Rajkot, Porbandar-Kanalus, Veraval-Rajkot and Maliya Maiyana - Navalakhi-Dahinsara-Wankaner sections.

In UP approval was given for the doubling of Roza-Sitapur Cantt-Burhwal broad gauge single line project at an estimated cost of Rs 1,295.42 crore with expected completion cost of Rs 1,486.46 crore with 5 per cent escalation per annum. The length of the railway line will be 180.77 kms and the completion period of the project will be five years.

CCEA also gave its nod for doubling of Pune-Miraj-Londa railway line in Maharashtra at an estimated cost of Rs 3,627.47 crore and expected completion cost of Rs 4,246.84 crore in five years keeping in view the 5 per cent escalation per annum.The length of the railway line will be 467 kms. Approval for the Vizianagaram and Titlagarh third line project too was given at an estimated cost of Rs 2,335.68 crore. The length of the railway line will be 264.6 kms and the completion period of the project will be five years.

The CNX Nifty is currently trading at 7973.10, up by 38.20 points or 0.48% after trading in a range of 7948.50 and 7986.35. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 9.95%, Idea Cellular up by 4.43%, Ambuja Cement up by 2.65%, BHEL up by 2.12% and Adani Ports &Special up by 2.08%. On the flip side, Bharti Infratel down by 1.57%, Sun Pharma down by 1.08%, Grasim Industries down by 1.00%, Tata Power down by 0.96% and HDFC down by 0.89% were the top losers.

Asian markets were trading mostly lower; Hang Seng decreased 14.14 points or 0.07% to 20,353.91, Shanghai Composite decreased 12.91 points or 0.46% to 2,802.18, Jakarta Composite decreased 8.32 points or 0.17% to 4,764.65, KOSPI Index decreased 3.45 points or 0.18% to 1,957.06 and Taiwan Weighted decreased 2.08 points or 0.02% to 8,394.12, while FTSE Bursa Malaysia KLCI increased 0.69 points or 0.04% to 1,631.65 and Nikkei 225 increased 15.11 points or 0.09% to 16,772.46.