Benchmarks gain strength; Nifty surpasses 8,000 mark

Indian equity benchmarks added strength hovering near the highest point of the day in the late afternoon session on sustained buying in frontline blue chip counters. The sentiments got some support as rupee appreciated against dollar infusing a sense of confidence among investors.  The rupee firmed up on increased selling of the US currency by exporters and banks. Traders were seen piling position in Capital Goods, Bankex and Realty sector stocks. In scrip specific development, Larsen & Toubro (L&T) was trading firm after it reported 18.55% increase in consolidated net profit at Rs 2,453.64 crore for the March quarter, and added that it expects 12-15% rise in revenues this fiscal. Sharda Cropchem was locked at upper circuit limit after the agro-chemical firm reported 108% increase in its net profit at Rs 106 crore compared to Rs 48 crore in the year-ago period. Rattanindia Power was trading in green after the company reported a standalone net profit of Rs 281.43 crore for the March quarter compared with a standalone loss of Rs 129.43 crore reported for the March quarter last year. The market may remain volatile today 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 today 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 8,000 and 26,200 levels respectively. The market breadth on BSE was positive in the ratio of 1292:1129 while 177 scrips remained unchanged.

The BSE Sensex is currently trading at 26213.25, up by 332.08 points or 1.28% after trading in a range of 25941.51 and 26226.30. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.54%, while Small cap index up by 0.68%.

The gaining sectoral indices on the BSE were Capital Goods up by 7.45%, Bankex up by 1.33%, Realty up by 1.18%, Auto up by 0.96%, IT up by 0.78%

The top gainers on the Sensex were Larsen & Toubro up by 12.10%, SBI up by 3.14%, ONGC up by 2.66%, BHEL up by 2.20% and ICICI Bank up by 2.18%.

On the flip side, NTPC down by 1.20%, Sun Pharma down by 1.12%, Coal India down by 0.39%, Asian Paints down by 0.15% and Wipro down by 0.11% were the top losers.

Meanwhile, the MNI India Business Sentiment survey has reported that confidence among Indian businesses fell to a five month low in May, and also stated that with rising inflationary pressure, there is limited scope for the RBI to cut rates.

As per the report the Deutsche Boerses MNI India Business Sentiment Indicator, a gauge of current sentiment among BSE-listed companies, declining for the third consecutive month fell from 62.4 in April to 61.8 in May, lowest since December 2015. The survey further stated that the decline was led solely by the manufacturing sector, while sentiment among construction and service sector firms improved.

The survey further said that the recovery in global commodity prices, especially crude oil, pushed up input costs following which prices charged by firms also rose to the highest since November 2014. It also stated that new orders held steady in May, although expectations for the coming three months eased for the third month in a row. In contrast, Export Orders fell to 52.9, the lowest level since May 2013.

MNI Indicators Chief Economist Philip Uglow, commenting on the survey findings said that with growth in China weakening, there has been increased focus on India's ability to grow rapidly for a sustained period. Evidence from the MNI India Business Sentiment Survey, though, paints a relatively subdued picture with output growth in particular running at a low level.

The CNX Nifty is currently trading at 8019.80, up by 84.90 points or 1.07% after trading in a range of 7948.50 and 8029.25. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 12.02%, Idea Cellular up by 3.97%, SBI up by 3.03%, Ambuja Cement up by 2.83% and ONGC up by 2.66%.

On the flip side, HCL Tech down by 1.21%, NTPC down by 1.20%, Bharti Infratel down by 1.20%, Sun Pharma down by 1.07% and Tata Steel down by 0.65% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 2.33 points or 0.14% to 1,633.29, Shanghai Composite increased 7.36 points or 0.26% to 2,822.44, Jakarta Composite increased 8.43 points or 0.18% to 4,781.41, Nikkei 225 increased 15.11 points or 0.09% to 16,772.46 and Hang Seng increased 29.06 points or 0.14% to 20,397.11.

On the other hand, 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.

The European markets were trading in green; UK’s FTSE 100 increased 2.53 points or 0.04% to 6,265.38, France’s CAC increased 5.35 points or 0.12% to 4,486.99 and Germany’s DAX increased 38.13 points or 0.37% to 10,243.34.