Benchmarks trade in fine fettle in early deals; Nifty reclaims 8,500 mark

Indian equity benchmarks have made a gap-up opening and are trading in fine fettle in F&O expiry session, with frontline gauges recapturing their crucial 27,450 (Sensex) and 8,500 (Nifty) levels tailing strong cues from other global markets. Traders took some encouragement with report that Donald Trump and Narendra Modi have discussed opportunities to strengthen the partnership between the United States and India in broad areas such as the economy and defense. Sentiments also got some support with report that foreign portfolio investors (FPIs) bought shares worth a net Rs 93.95 crore, while Domestic Institutional Investors (DIIs) also bought shares worth a net Rs 533.49 crore, on January 24, 2017.

On the global front, all the Asian equity indices were trading in green at this point of time taking cues from the US markets, as corporate results reignited investors’ optimism in economic growth, while a surge in commodities prices bolstered raw-materials companies. The US markets coming out of their consolidation mood rallied in last session.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. The market breadth remained in favour of advances, as there were 1,249 shares on the gaining side against 633 shares on the losing side while 121 shares remain unchanged.

The BSE Sensex is currently trading at 27487.70, up by 112.12 points or 0.41% after trading in a range of 27439.68 and 27514.49. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Metal up by 1.27%, Consumer Durables up by 1.03%, Realty up by 0.94%, Bankex up by 0.64% and Capital Goods was up by 0.60%, while TECK down by 0.15%, Power down by 0.03% and IT was down by 0.02% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.28%, HDFC up by 1.60%, Adani Ports up by 1.21%, ITC up by 1.15% and HDFC Bank was up by 1.10%. On the flip side, Bharti Airtel down by 2.61%, Mahindra & Mahindra down by 0.47%, Infosys down by 0.46%, Bajaj Auto down by 0.42% and Power Grid was down by 0.27% were the top losers.

Meanwhile, India will soon be submitting a proposal at the World Trade Organisation (WTO) to start discussions on trade facilitation agreement (TFA) in services. Commerce Minister Nirmala Sitharaman has said that India had already floated the concept note for the same and is now moving further towards a proposal. She added that they will soon submit a proposal for more discussions on that. The ministerial meeting of the WTO will be held in Buenos Aires, Argentina, on December 11-14.

India vying for an agreement to promote services trade as the sector contributes over 60 percent to the Gross Domestic product (GDP) and 28 percent in the total employment. Under this, it has suggested liberalisation of rules for movement of professionals and other steps to reduce transaction costs. Highlighting the importance of the services sector in pushing the country's economic growth, the minister has said that India is organising the third 'Global Exhibition on Services (GES)' in April in Greater Noida.

India is pushing for a TFA on services to promote trade in this sector along with goods. The TFA in goods will come into force once two-thirds of members have completed their ratification process. It contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and compliance issues.

Commerce Secretary Rita Teaotia has said that the sector is very important and areas like IT, healthcare, tourism, logistics hold huge potential for trade and investments. She added that the sector accounts for 33 per cent total exports.

The CNX Nifty is currently trading at 8512.30, up by 36.50 points or 0.43% after trading in a range of 8493.95 and 8519.25. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.38%, Zee Entertainment up by 1.77%, HDFC up by 1.63%, Hindalco up by 1.39% and Yes Bank was up by 1.31%. On the flip side, Bharti Airtel down by 2.61%, Idea Cellular down by 1.38%, BHEL down by 0.72%, Aurobindo Pharma down by 0.64% and Infosys was down by 0.59% were the top losers.

All the Asian markets were trading in green; KOSPI Index gained 2.12 points or 0.1% to 2,067.88, FTSE Bursa Malaysia KLCI rose 2.42 points or 0.14% to 1,683.11, Shanghai Composite jumped 7.36 points or 0.23% to 3,149.92, Jakarta Composite increased 10.08 points or 0.19% to 5,302.17, Taiwan Weighted added 23.9 points or 0.25% to 9,447.95, Hang Seng edged higher 39.76 points or 0.17% to 22,989.62 and Nikkei 225 was up by 206.09 points or 1.1% to 18,994.08.