Benchmarks build on early gains; escalate to day’s high level in afternoon deals

Barometer gauges, building on earlier gains are now trading near day’s highest point on account of sustained buying by funds and retail investors. After starting on positive note, benchmark equity indices went on adding gains on account of initiation of lower level buying by investors, which lapped up cheap but fundamentally stronger bets. Additionally, positive global set-up also is aiding the further upside of the markets.  Thus, trading near day’s high, while, Sensex is comfortably cruising past the crucial 20,350 psychological level, Nifty is nearing the crucial 6,050 mark, with gains of over one and half percent.

On the global front, Asian shares were trading sanguine on the final trading day of the week but were off session highs by the afternoon after upbeat U.S. economic data spurred a strong risk-on rally. Further, sentiments also got a lift with Senate Banking Committee's confirmation of Federal Reserve vice chair Janet Yellen to take over the central bank, considered a fiscal dove and the one who favours keeping the Fed's stimulus programme in  place for as long as needed.

Closer home, benchmarks also got off to dismal start after foreign institutional investors (FIIs) sold a net of Rs 59.8 crore in shares on Thursday to snap a 32-day buying streak that totaled Rs 23,884 crore as per exchange and regulatory data. Nevertheless, bottom fishing which got initiated in early deals, aided sentiment. Sectorally, Consumer Durables, Oil & Gas and Capital Goods stocks were the top gainers of the session, while Auto and Metal counters were the only laggards. Banking shares after witnessed massive drubbing in the previous two trading session, which also led Bank Nifty shed about 4% during this period, were witnessing some buying interest at this point in time. Meanwhile, telecom stocks were in limelight ahead of EGOM meeting later in the day to discuss the details of the third round of spectrum auction as well as M&A guidelines for the sector. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1206:782; while 136 shares remained unchanged.

The BSE Sensex is currently trading at 20364.70, up by 135.65 points or 0.67% after trading in a range of 20,372.33 and 20246.59. There were 21 stocks advancing against 8 declining on the index, while 1 stock remained unchanged.

The broader indices continued to trade with vigor; with BSE Midcap and Smallcap indices trading higher by 0.52% and 0.63% respectively.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.52%, Oil and Gas up by 1.22%, Capital Goods up by 1.12%, Bankex up by 0.97% and PSU up by 0.91%. While, Auto down by 0.35% and Metal down by 0.21% were the only losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.44%, ONGC up by 2.40%, Bharti Airtel up by 2.25%, Gail India up by 1.34%, and L&T up by 1.24%. On the flip side, SSLT down by 1.59%, Tata Motors down by 1.41%, Hindalco Inds down by 1.26%, Bajaj Auto down by 0.55% and Hero MotoCorp down by 0.49%, were the top losers on the Sensex

Meanwhile, allaying fears of investors in overseas countries, especially the Indian diaspora, concerned over the deteriorating fundamentals of the domestic country, Finance Minister P Chidambaram assured them saying that India is a safe investment destination for them. By adding further, Chidambaram has said that present exchange rate of rupee is a better reflection of its true value and the country is confident that both volatility and speculation have been largely contained.

Finance Minister assured investors that stability in rupee value will come soon as Indian authorities such as RBI have been continuously taking measures in order to check rupee volatility. On inflation front, Chidambaram said that the rate of price rise will ease to below 5 percent in current fiscal following steps taken by the Government and the Reserve Bank of India.

Foreign investment is considered crucial for economic development, as a rise in capital inflow will help support the rupee, which has depreciated over 15 percent against dollar in 2013. Despite the various efforts of Indian authorities to enhance capital inflow, FIIs have pulled out Rs 2,916 crore from debt securities so far this month and have withdrawn Rs 53,070 crore from the debt market since the beginning of year owing to the rising worries over the US Fed tapering.

The CNX Nifty is currently trading at 6,046.50, up by 47.45 points or 0.79% after trading in a range of 6,048.00 and 6,003.95. There were 38 stocks advancing against 12 declining on the index.

The top gainers of the Nifty were Cairn India up by 2.76%, ONGC up by 2.72%, HDFC and IndusInd Bank were up by 2.26%, and Bharti Airtel up by 2.13%. On the flip side, SSLT down by 1.62%, Tata Motors down by 1.42%, Hindalco Inds down by 1.34%, UltraTech Cement down by 0.53%, and Bajaj Auto down by 0.51%, were the major losers on the index.

The Asian equity indices were trading mostly positive;, Taiwan Weighted up by 0.21%, Seoul Composite up by 0.62%, KLSE Composite up by 0.01%, Nikkei 225 up by 0.10% and Hang Seng up by 0.52%. While, Shanghai Composite down by 0.33%, Jakarta Composite down by 0.05% and Straits Times down by 0.16%.