Benchmarks continue firm trade in late morning session

After getting a gap-up start, Indian benchmark indices continue to trade in fine fettle in late morning deals on account of fresh buying by investors and foreign funds, tracking positive global cues. Sentiments got some support with a private report stating that India jumped 13 positions and was placed second in retail potential in the 2016 Global Retail Development Index (GRDI). It also said that India has become the world’s fastest growing economy. Besides, appreciation in the rupee against dollar too supported sentiments. Rising for the fourth straight day, Indian rupee strengthened by 7 paise to 66.90 against the US dollar in early trade on sustained selling of the American currency by banks and exporters. Some support also came with the private report that said India’s economic growth is expected to accelerate to about 8.1 per cent in the current financial year on the back of better monsoon prospects and growth in consumption demand. Meanwhile, some investors remained on the sidelines and refrained from any buying activity ahead of the Reserve Bank of India's (RBI’s) second bi-monthly policy meet this fiscal. RBI is expected to keep its policy interest rate unchanged at a five-year low of 6.50% in its bi-monthly monetary policy, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices. 

On the global front, most of the Asian markets were trading on firm note in early trade as commodity prices climbed, though stocks in China stocks faltered as investors awaited economic data about the country’s capital outflows. Sentiments got a boost after US Federal Reserve Chair Janet Yellen gave a largely upbeat assessment on the US economic outlook, while the dollar declined on diminishing expectations of interest rate increases in coming months. In a speech Monday, Federal Reserve Chair Janet Yellen stressed that the U.S. economy appears fundamentally solid despite a jobs report for May released Friday that showed the weakest monthly gain in more than five years. She noted that other gauges of the job market have been more positive and also shied away from sketching any timetable for when the Fed might raise interest rates again because of so many uncertainties. Meanwhile, Japanese stocks rose as energy shares rallied on higher oil prices and the yen weakness against US dollar.

Back home, all BSE sectoral indices were trading in the green. Among them, FMCG index gained the most by 0.78 per cent, followed by PSU 0.74 per cent, Banking 0.71 per cent and Auto 0.65 per cent. In scrip specific development, Shares of Shreyas Shipping and Logistics surged after the company entered into an agreement with state-owned Shipping Corporation of India (SCI) to strengthen costal shipping and expand its presence on East-West trade lane.

The market breadth on BSE was positive, out of 2175 stocks traded, 1250 stocks advanced, while 813 stocks declined on the BSE. 

The BSE Sensex is currently trading at 26872.63, up by 95.18 points or 0.36% after trading in a range of 26829.53 and 26886.67. There were 20 stocks advancing against 10 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 0.61%.

The top gaining sectoral indices on the BSE were FMCG up by 0.78%, PSU up by 0.74%, Bankex up by 0.71%, Auto up by 0.65% and Capital Goods up by 0.42%, while there no losers on BSE sectoral indices. 

The top gainers on the Sensex were SBI up by 2.59%, ICICI Bank up by 2.08%, Hindustan Unilever up by 1.44%, Hero MotoCorp up by 1.21% and Mahindra & Mahindra up by 1.20%. On the flip side, Adani Ports &Special down by 0.56%, Lupin down by 0.53%, Dr. Reddys Lab down by 0.48%, HDFC down by 0.45% and Axis Bank down by 0.42% were the top losers.

Meanwhile, eight special economic zone (SEZ) developers and units have sought more time from the government for implementing their projects. Their request of these developers will be considered by the Board of Approval (BoA), a 19-member inter-ministerial body that deals with SEZ-related matters, headed by Commerce Secretary Rita Teaotia, on June 16.

These special economic zone (SEZ) developers and units includes, Gulf Oil Corporation which wants further extension of the validity period of formal approval granted for setting of IT/ITeS/electronic hardware SEZ in Karnataka, beyond June 17. Besides, it includes Lanco Solar which has sought more time for its unit in Chhattisgarh. The other players that have sought more time include HBS Pharma, Venkatesh Coke and Power, APPL Industries, BEML and Dr Reddy's Laboratories. BoA will also consider the request of Adani LPG Terminal for co-developer status in the multi-product SEZ at Mundra, being developed by Adani Port and SEZ.

In the last three years period till February 2016, the BoA has granted more time to as many as 132 developers of SEZs across the country to complete projects.  In 2014-15, exports from SEZ stood at Rs 4, 63,770 crore as compared to Rs 4, 94,077 crore in the previous fiscal.  Exports from SEZs have declined 1.89 per cent year-on-year to Rs 3.41 lakh crore in April-December 2015-16. The government is struggling to increase exports as the country’s shipments have continuously been declining and exports of half of the sectors out of the 30 closely monitored by the Commerce Ministry were in the negative zone in December due to a fall in global prices and demand. SEZs are important export hubs of the country, which contribute over 20 per cent in the country's total shipments.

The CNX Nifty is currently trading at 8230.75, up by 29.70 points or 0.36% after trading in a range of 8222.20 and 8236.50. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were SBI up by 2.69%, ICICI Bank up by 2.14%, Zee Entertainment up by 2.11%, Hindustan Unilever up by 1.53% and ONGC up by 1.11%. On the flip side, Aurobindo Pharma down by 0.92%, Lupin down by 0.58%, Dr. Reddys Lab down by 0.45%, Eicher Motors down by 0.38% and HDFC down by 0.35% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI was up by 0.6%, KOSPI Index up by 1.05%, Jakarta Composite up by 0.6%, Nikkei 225 up by 0.71%, Taiwan Weighted up by 0.86% and Hang Seng up by 0.8%. On the flip side, Shanghai Composite was down by 0.15%.