Markets keep rallying; banking stocks lead

Trading strength to strength, Indian equity markets have climbed to day’s highest point on persistent buying activities by investors. Markets got a sentimental boost after exchange and regulatory data unveiled that domestic institutional investors (DIIs), had turned buyers of shares worth Rs 330 crore, after twelve long sessions’ on Thursday. Nevertheless, rally got legs with participation of index heavy weight, viz ICICI Bank and ITC, which clocked gains of over a percent. Further, with across the board buying taking place, even the surge of midcap stocks were heartening.

Additionally, investors confidence in risky equities on expectation of positive GDP data, also was boarding well for Dalal Street against the backdrop of mixed Asian counterparts. On the global front,  Asian shares traded mixed on Friday as Japanese shares eased from a six-year high this week in thin trade following the U.S. Thanksgiving holiday.

Closer home, hopes that state elections results on December 8 would yield a clear winner, added to investors’ risk appetite. Thus, trading near day’s high level, Sensex and Nifty were trading above the psychological 20, 750 and 6,150 levels respectively, with gains of over a percent. Meanwhile, broader indices trading in line with front line indices also had clinched gains of close to a percent. Sectorally, banking, Realty and Public Sectoral Undertaking counters were outperformers. Bank shares, which were among the leading decliners over the last two sessions, led gains on renewed buying interest. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1503:321; while 23 shares remained unchanged

The BSE Sensex is currently trading at 20782.21, up by 274.30 points or 1.20% after trading in a range of 20,819.77 and 20558.93. 29 stocks were advancing on the index, while 1 stock remained unchanged.

The broader indices gained additional ground; the BSE Mid cap and Small cap indices were trading higher by 1.01% and 0.79% respectively.

Amidst across the board, there were no losers. The gaining sectoral indices on the BSE were Bankex up by 2.12%, Realty up by 2.02%, PSU and Metal were up by 1.68%, and FMCG up by 1.23%.

The top gainers on the Sensex were SSLT up by 3.85%, SBI up by 2.74%, ICICI Bank up by 2.61%, Gail India up by 2.58% and BHEL up by 2.09%. While, there no losers on the index,

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 6,170.00, up by 78.15 points or 1.28% after trading in a range of 6,182.40 and 6,103.80. There were 47 stocks advancing against 3 declining on the index.

The top gainers of the Nifty were JP Associates up by 4.45%, NMDC up by 4.14%, Bank of Baroda up by 3.95%, SSLT up by 3.94%, and Gail India up by 2.89%. On the flip side, Power Grid Corporate of India down by 0.21%, Asian Paints down by 0.12% and Mahindra & Mahindra up by 0.02% were the only losers on the index.

The Asian equity indices were trading mostly in red; Shanghai Composite down by 0.07%, Seoul Composite down by 0.04%, Nikkei 225 down by 0.41%, Straits Times down by 0.36%, and Jakarta Composite down by 0.04%. While, Taiwan Weighted up by 0.53%, Hang Seng up by 0.28%, and KLSE Composite up by 1.02%.