Firm trade persists; Sensex consolidates near 19,700 mark

Indian equity markets pared minor gains but continued to trade firm in the late afternoon session on account of buying in front line blue chip counters and taking cues from European counterparts. Though the markets cooled off from intra-day high, the sentiments continued to remain on firm note as Federal Reserve Chairman Ben S. Bernanke yesterday stated that central bank is likely to extend the centerpiece of its campaign to bolster the economy. Traders were seen piling positions in Metal, Bankex and Realty stocks. In scrip specific development, Gammon India jumped on reports that the company is likely to sell its 185 acre Dombivali property in Mumbai to cut Rs 2000 crore debt. Apollo Tyres was trading firm hitting their highest intraday level since June 18, after Morgan Stanley Asia (Singapore) bought 0.5% stake in the company via a bulk deal. Maruti Suzuki India was trading under pressure after Macquarie downgraded the company to neutral from outperform and cut its target price citing continued weakness in passenger vehicle demand and discounts on models.

On the global front, all the Asian markets were trading in green while the European markets were too trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,900 and 19,600 levels respectively. The market breadth on BSE was positive in the ratio of 1310:848, while 117 scrips remain unchanged. 

The BSE Sensex is currently trading at 19682.86, up by 388.74 points or 2.01% after trading in a range of 19723.51 and 19468.46.

The broader indices too have pared some gains; the BSE Mid cap and Small cap indexes were trading higher by 0.86% and 0.58% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 3.06%, Bankex up by 2.50%, Realty up by 2.33%, PSU up by 1.77% and Oil & Gas up 1.58%, while there was no loser on the BSE sectoral space.

On the Sensex 27 stocks were advancing, while 3 were on the declining side. The top gainers on the Sensex were Hindalco Industries up by 4.89%, Sterlite Industries up by 4.24%, HDFC Bank up by 3.83%, Hero MotoCorp up by 3.23% and HDFC up by 3.04%. On the flip side, Maruti Suzuki down by 0.50%, Wipro down by 0.21% and Cipla down by 0.01% were the only losers.

Meanwhile, in a move to boost the foreign investment into the country, Finance Minister P Chidambaram has defended Indian policies as growth oriented and urged the leaders of the US corporate sector to make substantial investments in India. Chidambaram, who is on a four-day US visit to attend the annual leadership summit of US-India Business Council, expressed the need for US companies to set up local manufacturing bases in India, saying that it is in the mutual interest of both countries for India to become a large manufacturing economy.

Finance Minister stressed that India is committed to ensure a transparent, fair and non-discriminatory investment environment for foreign investors seeking to do business in India. By adding further, Chidambaram said that steps are being taken to implement the recommendations regarding the transfer pricing and the Comprehensive Immigration Bill, which were recently passed by the US Senate. Finance Minister also emphasized Indian concerns about the provisions in the Comprehensive Immigration Reform Bill relating to skilled non-immigrant visas.

Chidambaram visit to the US came at a time when there is an increasing disappointment with Indian policies. The US lawmakers have written to Secretary of State, John Kerry and US President, Barack Obama, expressing their concerns over the Indian policies. They alleged Indian policies discriminatory, which do not provide a level playing field to the US companies.

Meanwhile, the foreign direct investment (FDI) inflows for the fiscal 2012-13 recorded a decline of 38% to $22.42 billion compared to the $35.12 billion inflow in the previous year. Foreign investment is crucial for economic development of a country and to attract foreign investment into the country, the government has been liberalizing the foreign investment policy. Finance Minister had earlier visited several major financial markets like Germany, Canada, Singapore, Hong Kong, and the UK to sell India’s growth story.

The CNX Nifty is currently trading at 5,937.10, up by 120.40 points or 2.07% after trading in a range of 5,948.85 and 5,887.95. Of the 50 stocks index, 45 stocks were on advancing side, while 5 were declining.

The top gainers of the Nifty were Sesa Goa up by 6.11%, Hindalco Industries up by 4.84%, HDFC Bank up by 4.10%, IndusInd Bank up by 3.79% and Bank of Baroda up by 3.45%. On the flip side, L&T down by 0.70%, Ranbaxy Laboratories down by 0.69%, Maruti Suzuki down by 0.51%, HCL Technologies down by 0.19% and Cipla down by 0.04% were the top losers on the index.

The Asian equity indices were trading in green; Shanghai Composite surged 3.23%, Hang Seng soared 2.55%, Jakarta Composite increased 2.68%, KLSE Composite rose 0.58%, Straits Times added 1.75%, Seoul Composite jumped 2.93%, Taiwan Weighted was up by 2.10% and Nikkei 225 was up by 0.39%.

The European markets were trading in green; France’s CAC 40 was up 1.01%, Germany’s DAX added 1.25% and the United Kingdom’s FTSE 100 edged higher by 1.05%.