Sensex, Nifty sheds early gains; oil stocks continued to hold momentum

Following a positive start, Indian equity markets came off from higher levels but still trading in a positive territory in the late morning session, as a few heavyweight stocks retreated on selling pressure. The Sensex was trading up by 22.64 points, while Nifty index of the National Stock Exchange was higher by 9.00 points. In currency markets, rupee recovered and trading positive against on increased foreign fund flows. On sectoral front, Oil & gas stocks continue to hold the momentum in market along with support from real estate and a few high beta stocks, while consumer durables, FMCG and auto stocks were trading lower. Meanwhile, Reliance Industries is trading stronger on reports that the company and its two partners - BP and Niko Resources plan to invest over $5 billion over the next three to five years in the KG-D6 block to develop around 4 trillion cubic feet of discovered natural gas reserves. In global markets, most Asian shares were trading higher after touching highest level since August 2011 on Wednesday on the back of improving global economic outlook boosted world equities overnight, encouraging investors to take on risk. Back home, the market breadth favoring positive trend; there were 1,365 shares on the gaining side against 989 shares on the losing side while 113 shares remain unchanged.

The BSE Sensex is currently trading at 19,658.36 up by 22.64 points or 012% after trading in a range of 19,742.42 and 19,645.90. There were 14 stocks advancing against 16 declines on the index.

The broader indices were trading in green; BSE Midcap and Small cap indices were trading higher by 0.25% and 0.64% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 2.01%, Oil & Gas up by 1.28%, IT up by 0.36%, TECk up by 0.34% and PSU up by 0.18%. While, CD down by 0.77%, FMCG down by 0.33%, Auto down by 0.10%, CG down by 0.09% and HC down by 0.03% were the top losers on the index.

The top gainers on the Sensex were RIL up by 2.19%, Wipro up by 1.05%, Hero MotoCorp up by 1.04%, Coal India up by 0.97% and GAIL India up by 0.66%.

On the flip side, Cipla was down by 1.21%, Hindustan Unilever was down by 0.69%, Tata Motors was down by 0.68%, Sterlite Industries was down by 0.58% and NTPC was down by 0.55% were the top losers on the Sensex.

Meanwhile, Britain has shown keen interest in joining hands to work with India for the establishment of National Manufacturing Investment Zones (NMIZs) or the industrial townships for facilitating the development of investment zones for manufacturing sector.

After the India-UK CEO Forum meeting, Commerce and Industry Minister Anand Sharma said 'we hope that the experience in advanced manufacturing and the technologies that Britain has in diverse sectors, including nanotechnology, aerospace, biotechnology, energy and life sciences, would be used.'

British Prime Minister David Cameron, who is on a three-day visit to India, is representing the British business delegation for India, has said that he wanted UK companies to help India for developing new cities and districts along a 1,000 km corridor between Mumbai and Bangalore, generating investment projects worth up to $25 billion.

Britain has shown keen interest to work with India for the establishment of National Manufacturing Investment Zones (NMIZs) or the industrial townships, two of these investment regions are likely to come along the proposed Bangalore-Mumbai Industrial Corridor, which will link up with the Delhi-Mumbai Industrial Corridor.

The India-UK CEO Forum comprising of 10 CEOs or Chairpersons each from the UK and India to ensure bilateral focus on strategic sectors will focus on specific and practical recommendations to enhance the partnership between India and UK focusing on advance manufacturing and institutional linkages in education, R&D and also for defence sector.

The S&P CNX Nifty is currently trading at 5,948.70 up by 9.00 points or 0.15% after trading in a range of 5,971.00 and 5,945.50. There were 29 stocks advancing against 21 declines on the index.

The top gainers of the Nifty were DLF up by 2.76%, BPCL up by 2.51%, Reliance up by 2.15%, Ambuja Cements up by 1.89% and HCL Tech up by 1.18%.

On the flip side, CIPLA down by 1.44%, HUL down by 0.67%, NTPC down by 0.65%, Maruti down by 0.65% and Tata Motors down by 0.57% were the major losers on the index.

 Most of the Asian equity indices were trading in the green; Shanghai Composite up by 0.01%, Hang Seng rose 0.28%, Jakarta Composite strengthened 0.48%, Nikkei 225 increased 0.84%, Straits Times added 0.21%, KOSPI Composite surged 1.95% and Taiwan Weighted was up by 0.86%.

On the flip side, KLSE Composite was down by 0.25% to 1,611.02.