Benchmarks maintain strong momentum; Nifty above 6,150 mark

Benchmarks rallied for second straight session on hopes of an improvement in economic growth during the Jul-Sep quarter. The market wide roll-over was 82.41% vs 80.45% last month. Investor’s sentiment was boosted as the rupee was trading marginally higher in early trades on Friday tracking gains in the stock markets. The rupee was trading at 62.28 compared with Thursday close of 62.41. Some support also came in after the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said that India will become the third-biggest economy in the world by 2030.Meanwhile, investors are eagerly waiting the fiscal deficit data for Apr-Oct and the third quarter GDP data to be released later today

On the global front, the US markets remained closed overnight unable to give any cues to the other global markets. Moreover, Asian equity benchmarks were exhibiting lacklustre trades at this point of time with investors trading cautiously amid a lack of fresh triggers. Japanese Nikkei declined around half a percent with investors indulging in some profit taking after the previous session’s strong rally.

Back home, traders were buying, Bankex, Realty and PSU sectors on the BSE. The market breadth on BSE remains positive with advances to declines in the ratio of 1108:524. BSE Sensex and NSE Nifty were comfortably trading near their psychological 20,500 and 6,100 levels respectively. The BSE Sensex is currently trading at 20816.32, up by 281.41 points or 1.37% after trading in a range of 20819.77 and 20558.93. All the 30 stock were advancing on the index. The broader indices were trading green; the BSE Mid cap index was up by 0.94% and Small cap index gained 0.82%.

The top gaining sectoral indices on the BSE were, Bankex up by 2.20%, Realty up by 1.61%, PSU up by 1.55%, Metal up by 1.47% and FMCG up by 1.43% and while there were no losers on the sectoral index.

The top gainers on the Sensex were ICICI Bank up by 2.81%, SSLT up by 2.77%,Cipla up by 2.58%, SBI up by 2.33% and ITC up by 1.96%, while there were the no losers on the Sensex

Meanwhile, Amid rising concerns over the widening fiscal deficit of the country, Economic Affairs Secretary Arvind Mayaram has said that country’s fiscal deficit will remain within set target at 4.8 percent of GDP for current fiscal as the government is taking various measures to maximize revenues. During the first six month of current fiscal, fiscal deficit of the country has touched Rs 4.12 lakh crore, or 76 percent of the budget estimate of Rs 5.42 lakh crore.

By adding further, Mayaram said that the government is considering spiking government bonds’ yields and will calibrate borrowing programme according to the market conditions.  Mararam is also confidence to meet the divestment target of Rs 40,000 crore for current fiscal. However, during the first seven months, the government was able to garner only about Rs 1,150 crore through disinvestment.

In order to contain the country's fiscal deficit, the government has been taking a number of measures including banning government departments for holding meetings in 5-star hotels among others to cut government spending in non-critical areas. Finance Minister P Chidambaram had also said that the government can reduce spending soon by some large government departments despite up coming national election. In the previous financial year, the government was able to contain the fiscal deficit at 4.89 percent of GDP, against the budgeted target of 5.1 percent of GDP. 

The CNX Nifty is currently trading at 6,178.80 up by 86.95 points or 1.43% after trading in a range of 6,179.65 and 6,103.80. There were 49 stocks advancing while 1 stock remains unchanged on the index.

The top gainers of the Nifty were JP Associate up by 3.84%, ICICI Bank up by 3.07%, SSLT up by 2.97%, Cipla up by 2.67% and NMDC up by 2.61%, while there were the no losers on the index.

The Asian equity indices were trading mixed; Nikkei 225 declined 117.41 points or 0.75% to 15,609.71, Straits Times decreased 16.22 points or 0.51% to 3,170.15, Jakarta Composite added 1.56 points or 0.04% to 4,232.37 and Seoul Composite was down by 5.51 points or 0.27% to 2,040.26.

On the flip side, KLSE Composite up by 0.17 points or 0.01% to 1,807.77, Shanghai Composite rose 0.66 points or 0.03% to 2,220.04, Hang Seng surged 56.04 points or 0.24% to 23,845.13, and Taiwan Weighted was up by 37.71 points or 0.45% to 8,400.14