Benchmarks extend gains; trade near intra-day high level

Indian equity benchmarks extended the early gains and continued the firm trade in the noon session, hovering near intra-day high level, on fresh buying by investors in selected blue-chips. Overall sentiment remained positive as markets across the region gained after the Bank of Japan decided to adopt a target for long-term interest rates in an overhaul of its massive stimulus programme. Investors also got some confidence with the raising expectation that the Fed is unlikely to hike the interest rate in its meeting held today. On the domestic front, sentiments got some support from global rating agency Moody’s statement that it could upgrade India's rating in 1-2 years if it is convinced that reforms are 'tangible', though it has called the reform process slow and gradual with muted private investment and NPAs posing a challenge. It said that it has a positive outlook on India. Meanwhile, stocks related to infra sector gained traction, as the government has announced the names of 27 more cities that will be developed under the centre’s ‘Smart City Mission’.

On the global front, Asian markets wiped off their initial losses and turned positive after the Bank of Japan decided to adopt a target for long-term interest rates in an overhaul of its massive monetary stimulus programme. The BOJ maintained its 0.1 per cent negative interest rate, but abandoned its base money target and instead set a ‘yield curve control’ under which it will buy long-term government bonds to keep 10-year bond yields around current levels of zero per cent. Market participants are now watching out for the US Federal Reserve policy decision, due later in the global day.

Back home, all BSE sectoral indices were trading in the green. Among them, Consumer Durables index gained the most by 1.22 per cent, followed by Metal 0.93 per cent, Realty 0.87 per cent and Auto 0.86 per cent. In scrip specific development, TeamLease Services rallied after the company announced that it will acquire Nichepro Technologies for an enterprise value of up to Rs 29.5 crore. Furthermore, Monsanto India has surged after German pharma and chemical major Bayer group announced an open offer to buy up to 4.49 million shares representing 26% of the paid-up capital of the agrochemicals Company at Rs 2,481.60 per share.The market breadth remained optimistic as there were 1567 shares on the gaining side against 771 shares on the losing side, while 174 shares remained unchanged.The BSE Sensex is currently trading at 28672.99, up by 149.79 points or 0.53% after trading in a range of 28529.93 and 28689.36. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index up by 0.79%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.22%, Metal up by 0.93%, Realty up by 0.87%, Auto up by 0.86% and Oil & Gas up by 0.70%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Bajaj Auto up by 2.14%, Tata Motors up by 1.35%, Tata Steel up by 1.19%, Hero MotoCorp up by 1.11% and Axis Bank up by 1.04%. On the flip side, ICICI Bank down by 0.17%, Maruti Suzuki down by 0.11% and Coal India down by 0.05% were the top losers.

Meanwhile, Government's Standing finance committee (SFC) has cleared nine highway projects in five states including Telangana, Andhra Pradesh, Karnataka, Nagaland and Uttar Pradesh for upgradation and construction of 414 km worth Rs 2,600.31 crore. All the projects would be built on engineering, procurement and construction (EPC) mode.

The project includes rehabilitation and upgradation of 49 km stretch of Allahabad-Mirzapur section of National Highway (NH) 76 in Uttar Pradesh at a cost of Rs 241 crore. Beside,  construction of two-lane Pilibhit-Puranpur on NH 730 at Rs 177 crore and upgradation of Banda-Allahabad of NH 76 at Rs 219 crore. The two projects in Karnataka cover widening of Chittapur cross to the start of Yadgir bypass of NH 150 at a cost of Rs 315 crore and widening of Maharashtra border to Bidar section on NH 50 for Rs 397 crore.

In Nagaland, the 34.171 km Dimapur to Kohima project would be built at a cost of Rs 326 crore under the Inter State Connectivity scheme. Of the remaining three, two are with respect to Telangana and one Andhra Pradesh.

The CNX Nifty is currently trading at 8824.35, up by 48.45 points or 0.55% after trading in a range of 8778.40 and 8826.85. There were 43 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.26%, Bharti Infratel up by 2.82%, Bajaj Auto up by 2.24%, Eicher Motors up by 1.78% and Tata Motors - DVR up by 1.53%. On the flip side, Ultratech Cement down by 0.54%, ICICI Bank down by 0.37%, Tech Mahindra down by 0.36%, Maruti Suzuki down by 0.18% and Zee Entertainment down by 0.16% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI rose 0.02%, KOSPI Index gained 0.42%, Taiwan Weighted increased 0.73%, Shanghai Composite added by 0.23%, Nikkei 225 jumped 1.72% and Hang Seng was up by 0.7%. On the flip side, Jakarta Composite decreased 0.02%.