Indian bourses trim gains; trade continues in green

Key benchmark indices pared some of their initial gains in afternoon session but continued to trade in green on account of buying in front line blue chip counters. Sentiments got some support with a private report stating that government is expected to meet its fiscal deficit target of 3 percent for the next financial year on account of additional revenue from penalty on black money and deposits under the income disclosure. Besides, a firm trend in the Asian markets following positive lead from Wall Street's reaction to data showing the US economy expanded at a quicker rate than expected in the third quarter, aiding optimism on the street. Meanwhile, hopes of strong GDP for September quarter too helped investor sentiment. The general expectation is that economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter but lower than 7.9 per cent growth posted for the March quarter. In scrip specific development, Cairn India dropped over three percent after oil prices fell as much as 4 percent on Tuesday on concerns that OPEC members will be unable to finalize a deal on reducing global oversupply.

On the global front, Asian markets were trading mostly in green, following the positive lead overnight from Wall Street. However, gains are muted in most markets as investors turned cautious due to uncertainty ahead of the highly anticipated OPEC meeting in Vienna later in the day. Crude oil prices steadied in Asian trades after falling nearly 4 percent overnight.

The BSE Sensex is currently trading at 26479.08, up by 85.07 points or 0.32% after trading in a range of 26395.50 and 26531.37. 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 0.54%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.01%, Capital Goods up by 1.23%, Bankex up by 0.89%, Auto up by 0.51% and Oil & Gas up by 0.44%, while Metal down by 0.94%, Realty down by 0.16% and Power down by 0.13% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.05%, Larsen & Toubro up by 1.65%, Maruti Suzuki up by 1.24%, Adani Ports &Special up by 1.16% and Sun Pharma Inds. up by 1.12%. On the flip side, Power Grid Corpn. down by 0.95%, Coal India down by 0.91%, NTPC down by 0.67%, GAIL India down by 0.67% and Reliance Industries down by 0.47% were the top losers.

Meanwhile, the government has given approval to set up six new special economic zones (SEZs) across three states in sector such as IT and biotechnology. These SEZs were given approval by the Board of Approval (BoA), chaired by Commerce Secretary Rita Teaotia.

The approved SEZ proposals are Vaxenic India, EON Kharadi Infrastructure and KRC Infrastructure. GAR Corporation has planned to set up two IT/ITeS zones in Telangana, while Vaxenic India wants to set up biotechnology and bio pharmaceuticals SEZ in the state. EON Kharadi Infrastructure and KRC Infrastructure too have planned to set up separate IT/ITeS special economic zones in Pune. Information Technology Park has got the approval to set up IT zone in Karnataka.

It should be noted that SEZs account for about 23 per cent of the India’s total exports. During the period of 2015-16, exports from special economic zones recorded a marginal growth of 0.77 per cent to Rs 4.67 lakh crore. The exports from such 204 zones were Rs 4.63 lakh crore in 2014-15. As per the Commerce Ministry’s data, as on March 31, these zones had attracted investments worth Rs 3.76 lakh crore and generated employment for 15.91 lakh people.

The CNX Nifty is currently trading at 8173.55, up by 31.40 points or 0.39% after trading in a range of 8139.25 and 8188.80. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.54%, Grasim Industries up by 2.28%, ICICI Bank up by 2.17%, Larsen & Toubro up by 1.84% and ACC up by 1.64%. On the flip side, Idea Cellular down by 2.46%, Hindalco down by 1.03%, Coal India down by 0.78%, Reliance Industries down by 0.76% and GAIL India down by 0.70% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 increased 1.44 points or 0.01% to 18,308.48, KOSPI Index gained 5.09 points or 0.26% to 1,983.48, Jakarta Composite added 36.85 points or 0.72% to 5,173.52, Taiwan Weighted increased 48.33 points or 0.53% to 9,240.71 and Hang Seng was up by 69.84 points or 0.31% to 22,806.91.On the flip side, Shanghai Composite decreased 38.14 points or 1.16% to 3,244.79 and FTSE Bursa Malaysia KLCI was down by 1 points or 0.06% to 1,625.93.