Benchmarks continue to trade firm on positive global cues; Metal, Bankex, Realty lead

Indian equities continued to trade in fine fettle on back of strong buying in frontline counters in the late morning session. On the global front, the Asian markets were majorly trading in green with some of the indices gaining over one and half a percent in early trade after Draghi said policy makers will do whatever is required to preserve euro. The US markets went for a rally on Thursday and major indices saw their best day in about a month on getting positive news from the unemployment claims and positive hopes from euro zone. Traders were seen piling up position in Metal, Bankex and Realty sector. Meanwhile, the retail stocks were trading in green after Trade Minister Anand Sharma said that the government is committed to opening its retail sector to foreign investment and will not reverse its stance. The NSE Nifty and BSE Sensex were trading above their psychological 5100 and 16,800 levels respectively. The market breadth on BSE was positive in the ratio of 1455:596 while 67 scrips remained unchanged.

The BSE Sensex is currently trading at 16880.57 up by 240.75 points or 1.45% after trading as high as 16915.76 and as low as 16813.13. There were 27 stocks advancing against 3 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index up 1.21% while Small cap index was up 1.25%.

On the BSE sectoral space, Metal up by 2.66%, Bankex up by 2.46%, Realty up by 1.72%, CG up by 1.51%, and Power up by 1.48% while there was loser on the index.

Tata Motors up by 4.81%, Tata Steel up by 3.74%, Hindalco Industries up by 3.73% ICICI Bank up by 3.48% and Sterlite Industries up by 3.43% were the gainers on the Sensex, while Hero MotoCorp down by 2.17%, Bajaj Auto down by 0.29% and Dr Reddys Lab down by 0.06%, were the major losers in the index.

 Meanwhile, reiterating governments’ stand on foreign direct investment (FDI) in retail, Trade Minister Anand Sharma has said that India is committed to opening its retail sector to foreign investment and will not reverse its stance. 'We are committed, we have taken the decision and we are building a strong consensus and we are not reversing our decision,' he said. 'It is being held in abeyance, it is on pause button... But it is a political call. We want to do this and I am not the only one.'

It was widely being expected that the decision on FDI in retail could be announced before the next parliament session on August 8. The decision to allow 51 percent FDI in multi-brand retail was announced in November last year, but its implementation was put on hold after strong protest from various parties including some key allies of the government. Another party supporting government from outside too has said that the party has reservations over allowing FDI in retail before addressing farmers' issues.

The retail sector of India is vast, and has huge potential for growth and development, as the majority of its constituents are un-organized; it contributes about 15% to the national GDP, and employs a massive workforce. But political parties have been opposing the FDI in retail saying it would exacerbate the problem of locals by causing huge unemployment.

The S&P CNX Nifty is currently trading at 5,120.85,up by 77.85 points or 1.54% after trading as high as 5,130.70 and as low as 5,102.00. There were 46 stocks advancing against 4 declines on the index.

The top gainers on the Nifty were Sterlite Industries up by 4.67%, Tata Motors up by 4.63%, Tata Steel up by 4.34%, ICICI Bank by 3.62% and Hindalco up by 3.28%. While, Hero Moto Co down by 2.51%, Bajaj-Auto  down by 0.25%, DR Reddy down by 0.17% and Cipla down by 0.03% were the major losers on the index.

Mostly Asian equity indices were trading in green; Hang Seng index up by 1.85%, Nikkei 225 up 1.05%, Taiwan Weighted up 2.02%,  Kospi Composite Index up 2.29% and Jakarta Composite was up by 1.58%,  while KLSE Composite down 0.10%, Shanghai Composite down 0.16%  and Straits Times down 0.04%, there were the losers.