Benchmarks trade in proximity to day’s high level; Nifty cruises past 6300 level

Benchmark equity indices, are trading in proximity of day’s highest point, which is near all time high level on account of persistent buying by retail investors thanks to prevailing festive mood at Dalal Street. Strong gains of Realty, Banking and Auto counters mainly is keeping the mood upbeat at Indian equity markets, while Consumer Durable, Fast Moving Consumer Goods and Oil & Gas counters are slogging to limit further gains of bourses. Additionally, mixed global cues and macor-economic data, have so far failed to do little to hamper the spirit of the bourses on the occasion of ‘Dhanteras’. Both Sensex and Nifty, adding gains of close to 2/ 10 of a percent are trading above the crucial 21,200 and 6,330 levels respectively.

On the global front, Asian shares struggled on Friday, as surveys showing improvement in Chinese manufacturing activity were eclipsed by anxiety over when the U.S. Federal Reserve will start to taper its massive stimulus.

Closer home, Indian equity markets’ festive spirit remained unscathed despite mixed set of macor-economic data. While, on one hand, Core Sector data sprinted up positive surprise by growing 8% in September, H1 Fiscal deficit touched 76% of full-year target. The overall market breadth on BSE is in the favour of advances which thumped declines in the ratio of 1257:872; while 135 shares remained unchanged.

The BSE Sensex is currently trading at 21209.17, up by 44.65 points or 0.21% after trading in a range of 21293.88 and 21146.57. There were 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.08%, while Small cap index up by 0.84%.

The gaining sectoral indices on the BSE were Realty up by 3.12%, Bankex up by 1.59%, Auto up by 1.41%, Metal up by 1.32% and PSU up by 1.21%. While, Consumer Durables down by 1.97%, FMCG down by 0.72%, Oil and Gas down by 0.44% and IT down by 0.36% were losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.83%, Hero Moto Corp up by 3.19%, M&M and Jindal Steel up by 2.81%, and Coal India up by 2.28%. On the flip side, ONGC down by 1.59%, ITC down by 1.42%, NTPC down by 1.28%, Gail India down by 1.02% and Infosys down by 0.83% were the top losers on the Sensex.

Meanwhile, Foreign direct investment (FDI) in India has surged by about 35 percent to $13.6 billion during the first half of 2013 with merger and acquisitions (M&A) accounting for the bulk of inflows. The United Nations Conference on Trade and Development (UNCTAD) report said that foreign investment through M&A registered a growth of 65.7 percent during the first half of 2013 to $1.8 billion as against $1.1 billion in January-June 2012. However, FDI in new projects has declined by 48.7 percent to $8.8 billion during the period.

Increasing FDI inflows into the country reflect that the government’s measures to enhance foreign investment has have started yielding. FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension and petroleum and natural gas. India would require around $1 trillion in the 12th five year plan (2012-2017), to overhaul its infrastructure sector such as ports, airports and highways to boost growth.

Further, the UNCTAD report highlighted that foreign fund inflows into India has pushed the total figures for the South Asian Association for Regional Cooperation (SAARC). In terms of FDI inflows among BRICS (Brazil, Russia, India, China and South Africa) countries, India stood at fourth position, above South Africa. Developing Asian region continues would absorb more than half of the FDI directed to developing economies and one quarter of global FDI flows.

Among the world's largest recipients of FDI during the reported period, UK topped the chart followed by China with $67 billion foreign inflows. The report further said that global foreign direct investment witnessed a 4 percent rise to $745 billion in the first half of 2013. The FDI inflow to the developed countries has declined. Meanwhile the decline was offset by a rise in flows to developing and transition economies, which accounted for more than 60 percent of the global FDI.    

The CNX Nifty is currently trading at 6,311.10, up by 11.95 points or 0.19% after trading in a range of 6,332.60 and 6,286.95. There were 32 stocks advancing against 18 declines on the index.The top gainers of the Nifty were IDFC up by 7.57%, Punjab National Bank up by 6.66%, Bank of Baroda up by 6.38%, DLF up by 4.48%, and SBI up by 3.73%. On the flip side, ITC down by 1.87%, ONGC down by 1.82%, NTPC down by 1.64%, Powergrid Corporation down by 1.28% and Gail India down by 1.03%, were the major loser on the index.

The Asian equity indices were trading in mixed;, Shanghai Composite up by 0.39%, Seoul Composite up by 0.46%, KLSE Composite up by 0.12% and Hang Seng up by 0.15%. While,  Straits Times down by 0.33%, Nikkei 225 down by 0.88%, Jakarta Composite down by 1.38% and Taiwan Weighted down by 0.73%.