Benchmarks trade near days high

Indian equity markets added gains to continue firm trade, hovering near the highest point of the day, in the afternoon session on account of buying in front line blue chip counters. At present, Sensex and Nifty were trading above the crucial 28,000 and 8,650 levels respectively, with gains of around half a percent. Sentiments remained upbeat after the manufacturing sector growth in India hit a 22-month high in October, driven by a sharp and accelerated increase in new orders, purchasing activity and output. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) - a gauge of manufacturing performance - rose to 54.4 in October from 52.1 in September, indicative of a robust improvement in manufacturing business conditions in the country. Sentiments also got some support with Core sector output rising to three months high by 5 per cent in September, compared to growth of 2.4 per cent in the year-ago period, on the back of a sustained growth in the steel sector and a rise in refinery products. Further, appreciation in Indian rupee too supported the sentiments. The rupee gained 7 paise to trade at 66.70 per dollar mark on selling of the American currency by exporters and banks amid strength in the local equities. In scrip specific development, Tata Steel was up by half a percent even as Brickwork Ratings downgraded its credit rating with a negative outlook citing ‘heightened management risk’ and ‘lack of clarity at group-level management’.

On the global front, Asian markets were trading mostly in green after surveys showed China’s factory activity rose to a two-year high last month, suggesting the world’s No. 2 economy is stabilizing.

The BSE Sensex is currently trading at 28014.26, up by 84.05 points or 0.30% after trading in a range of 27872.15 and 28027.29. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Metal up by 3.05%, Power up by 1.19%, PSU up by 0.50%, Auto up by 0.39% and Capital Goods up by 0.22%, while Consumer Durables down by 0.66%, IT down by 0.56%, TECK down by 0.44% and Realty down by 0.14% were the losing indices on BSE.

The top gainers on the Sensex were HDFC up by 3.05%, Power Grid Corpn. up by 2.34%, Tata Steel up by 2.06%, NTPC up by 1.98% and Asian Paints up by 1.08%. On the flip side, Axis Bank down by 1.46%, Sun Pharma Inds. down by 0.94%, ONGC down by 0.91%, Infosys down by 0.82% and TCS down by 0.77% were the top losers.

Meanwhile, in order to facilitate greater foreign direct investment (FDI) in the country, the government is considering further easing FDI norms in several sectors, including retail trading, with an eye on more inflows. The commerce and industry ministry is already on the job in this direction and they said that there are certain sticking points in single brand retail trading that need to be reviewed.

In retail trading sector, some clauses in the Legal Metrology (Packaged Commodities) Rules, 2011, are hampering overseas investments in the segment. Earlier, it lifted certain restrictions in over a dozen sectors which include civil aviation, food processing, defense and pharmaceuticals. The government may also consider easing certain FDI rules in the information and broadcasting sector, among others.

Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek has stated that the government is trying to address specific policy issues in various sectors. They are also trying to address specific policy issues in various sectors and they have identified a number of them that remain despite liberalization in FDI (policy). He said that there could be issues in various sectors. In 2015-16, FDI grew by 29 per cent to $40 billion.

The CNX Nifty is currently trading at 8664.75, up by 39.05 points or 0.45% after trading in a range of 8614.50 and 8666.95. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.68%, Eicher Motors up by 3.78%, HDFC up by 3.30%, Bharti Infratel up by 2.39% and BHEL up by 2.30%. On the flip side, Axis Bank down by 1.54%, Tech Mahindra down by 1.42%, Yes Bank down by 1.05%, Sun Pharma Inds. down by 0.95% and Cipla down by 0.86% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.5 points or 0.03% to 1,672.96, Jakarta Composite increased 6.12 points or 0.11% to 5,428.66, Nikkei 225 increased 17.38 points or 0.1% to 17,442.40, Shanghai Composite increased 18.36 points or 0.59% to 3,118.85, Hang Seng increased 259.21 points or 1.13% to 23,193.75.

On the flip side, Taiwan Weighted decreased 17.42 points or 0.19% to 9,272.70 and KOSPI Index decreased 0.8 points or 0.04% to 2,007.39.