Markets continue to trade higher in late afternoon session

Indian equity benchmarks continued their firm trade in late afternoon session amid positive cues from other Asian markets as the US Federal Reserve kept rates unchanged. Strong Inflows from overseas investors and across-the-board buying by the investors helped the domestic market sentiment. Some support also came with the report that country’s current account deficit (CAD) narrowed to $ 0.3 billion, or 0.1 percent of GDP, in the first quarter of 2016-17, significantly lower than $ 6.1 billion or 1.2 percent of GDP in Q1 of 2015-16, on account of lower trade gap. Firm opening in European market too supported the local markets. European shares climbed to a two-week high on Thursday, boosted by a rally in mining equities, after the U.S. Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018.

Back home, most of the stocks out of Nifty 50 hit fresh 52-week high. Tata Motors, Maruti and Eicher motors were the leading contributors to Sensex's gains. In scrip specific developments, Financial Technologies India rises after the company has received a provisional attachment order from the Directorate of Enforcement, Mumbai, attaching Mutual funds amounting to Rs.306.70 crores.

The BSE Sensex is currently trading at 28752.60, up by 245.18 points or 0.86% after trading in a range of 28693.07 and 28871.92. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.06%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.54%, Auto up by 1.47%, Bankex up by 1.33%, Power up by 1.32% and Capital Goods up by 1.21%, while IT down by 0.37% and TECK down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 2.55%, NTPC up by 2.05%, Maruti Suzuki up by 1.96%, Power Grid up by 1.91% and SBI up by 1.85%. On the flip side, Lupin down by 1.40%, TCS down by 1.18%, Coal India down by 0.91%, Hindustan Unilever down by 0.64% and Axis Bank down by 0.56% were the top losers.

Meanwhile, representatives from global credit rating agency Moody's in their scheduled meet with Economic Affairs Secretary and other finance ministry officials expressed concern over the state of bad loans in the banking sector. Government on its part citing reforms and steps taken towards ease of doing business, pitched for a rating upgrade with Moody's.

The ministry impressed upon the global rating agency about the government's resolve to contain fiscal deficit at 3.5 per cent of Gross Domestic Product (GDP) in the current fiscal. It highlighted the passage in Parliament last month of the long pending Goods and Services Tax (GST) - billed as the biggest tax reform since Independence. With relaxation of thresholds for Foreign Direct Investment (FDI) and inflation targeting monetary policy, the finance ministry wants the US-based agency to upgrade the country's rating, lifting its credit profile.

However, in the meeting with Economic Affairs Secretary Shaktikanta Das and ministry, Moody's said that a rating upgrade could be a reality when the benefits of reforms could be felt on the ground and the country's banking sector stabilizes.

India's sovereign rating by Moody's stands at 'Baa3', the lowest investment grade just a notch above 'junk' status. In April last year, Moody's had changed India's rating outlook to 'positive' from 'stable' citing reform momentum and had said that it could consider India for an upgrade in next 12-18 months. Recently, it said that it could upgrade India's rating in 1-2 years if it is convinced that reforms are 'tangible'.

The CNX Nifty is currently trading at 8854.45, up by 77.30 points or 0.88% after trading in a range of 8837.80 and 8893.35. There were 39 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 4.88%, Hindalco up by 2.98%, Indusind Bank up by 2.92%, Hero MotoCorp up by 2.57% and Tata Motors - DVR up by 2.36%. On the flip side, Lupin down by 1.53%, TCS down by 1.43%, Tech Mahindra down by 1.33%, Coal India down by 1.18% and Idea Cellular down by 0.95% were the top losers.

Asian market were trading in green; Taiwan Weighted increased 6.76 points or 0.07% to 9,235.26, FTSE Bursa Malaysia KLCI jumped 8.63 points or 0.52% to 1,667.36, KOSPI Index climbed 13.71 points or 0.67% to 2,049.70, Shanghai Composite rose 16.44 points or 0.54% to 3,042.31, Jakarta Composite increased 33.85 points or 0.63% to 5,376.44 and Hang Seng was up by 89.9 points or 0.38% to 23,759.80. Japanese stock exchange was closed on account of ‘Autumn Equinox’ holiday.

European markets were trading in green; UK’s FTSE 100 increased 40.63 points or 0.59% to 6,875.40, France’s CAC climbed 44.26 points or 1% to 4,453.81 and Germany’s DAX surged 125.88 points or 1.21% to 10,562.37.