Firm global cues fortify benchmarks; Nifty regains 8,150 mark

Buoyed by firm global cues, Indian equity indices have made a gap-up opening and are trading near high point of the trade, with key gauges recapturing their crucial 26,600 (Sensex) and 8,150 (Nifty) bastions. Sentiments remained up-beat on anticipation that the Union Cabinet would approve a higher increase in the basic pay of government employees. Also, traders took some encouragement with Reserve Bank of India’s Financial Stability Report (FSR), stating that despite global uncertainties, banking sector issues, the economy stands out in terms of growth as compared to other emerging markets and the Indian financial system remains stable. Global cues too provided much needed support to the domestic markets with US stocks surging overnight to end higher on bargain hunting after sharp losses in the previous two sessions post the shocking outcome of the referendum in which Britain voted to exit the European Union. Asian markets rallied amid rise in oil prices and hope that policy makers around the world will come up with stimulus measures to blunt the impact of the UK’s decision to leave the European Union.

The BSE Sensex is currently trading at 26668.40, up by 143.85 points or 0.54% after trading in a range of 26620.64 and 26676.87. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.69%, while Small cap index gained 1.01%.

The top gaining sectoral indices on the BSE were Realty up by 4.01%, Auto up by 1.17%, Industrials up by 1.05%, Capital Goods up by 1.03% and Metal up by 1.03%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Tata Motors up by 1.74%, NTPC up by 1.45%, Hero MotoCorp up by 1.40%, Larsen & Toubro up by 1.22% and Tata Steel up by 1.09%. On the flip side, Lupin down by 0.34%, HDFC Bank down by 0.25%, Coal India down by 0.22%, ITC down by 0.08% and GAIL India down by 0.08% were the top losers.

Meanwhile, for faster appraisal and approval of Non-Plan Schemes/Projects by competent authorities, the Central government has enhanced financial limits of departments and ministries, which will help speed up decision-making and project clearances.

Projects or schemes worth Rs 500 crore and above as against the earlier ceiling of Rs 150 crore and up to Rs 1,000 crore can now be cleared by the Finance Minister and only proposal having financial limits of Rs 1000 crore and above would require the Cabinet approval.

Ministry of Finance has elaborated that concurrently, financial limits regarding appraisal and approval of increase in cost estimates have also been revised. Increase in cost up to 20% of the firmed up cost estimates can now be appraised by the Financial Adviser and approved by Secretary of the administrative Department, if the absolute cost escalation is up to Rs.75 crore, and by the Administrative Minister-in-charge if absolute cost escalation is above this. In case the escalation is more the administrative minister-in-charge can clear the same.

It added that with this enhancement of financial powers, the financial limits for appraisal and approval of plan and non-plan schemes/projects of Central Government Ministries and Departments have been brought almost at par. This is expected to expedite appraisal and approval process in the Central Government Ministries/Departments.

The CNX Nifty is currently trading at 8173.20, up by 45.35 points or 0.56% after trading in a range of 8162.25 and 8176.55. There were 45 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Bosch up by 4.89%, Hindalco up by 2.03%, BHEL up by 1.72%, Hero MotoCorp up by 1.64% and NTPC up by 1.55%. On the flip side, Lupin down by 0.56%, BPCL down by 0.51%, Coal India down by 0.41%, HDFC Bank down by 0.28% and ACC down by 0.08% were the top losers.

All the Asian markets were trading in green; FTSE Bursa Malaysia KLCI rose 6.04 points or 0.37% to 1,640.08, Shanghai Composite jumped 13.9 points or 0.48% to 2,926.46, KOSPI Index surged 25.55 points or 1.32% to 1,961.77, Jakarta Composite strengthened 70.29 points or 1.44% to 4,952.46, Taiwan Weighted increased 71.37 points or 0.84% to 8,576.88, Hang Seng added 144.11 points or 0.71% to 20,316.57 and Nikkei 225 was up by 286.46 points or 1.87% to 15,609.60.