Benchmarks extend early gains; trade at intra-day high level

Indian equity benchmarks extended early gains and reached at their intra-day high level in afternoon session led by gains in healthcare, banking and capital goods stocks as investors’ sentiment got a boost with improvement in India's November manufacturing PMI data.  The HSBC Purchasing Managers’ Index (PMI) snapped its three consecutive months’ declining streak and climbed to 51.3 in November from 49.6 in the previous month, mainly led by the rise in new domestic orders. Further, better-than-expected GDP data for Q2 FY14 also provided support to sentiments. Back on street, healthcare was the top gainer on BSE, up by nearly 1.73% followed by banking and capital goods stocks both up by over 1.40%. On stock specific movement, ICICI Bank, Jindal Steel and Sun Pharma were trading up by nearly 2.5% , while, ONGC, Gail India and HUL were trading down by around 1.50% on BSE.

On global front, Asian markets were trading mixed with Shanghai Composite down by 0.77%, while Straits Times up by 0.15%. Global investors opted to remain on sidelines ahead of the US economic data scheduled to be released this week, including third quarter gross domestic product estimates and November non-farm payrolls.  Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,200 and 20,500 levels respectively. The market breadth on BSE was positive, out of 2,093 stocks traded, 1,287 stocks advanced, while 697 stocks declined on the BSE. 

The BSE Sensex is currently trading at 20,923.85 up by 131.92 points or 0.63% after trading in a range of 20,941 and 20,770.51. There were 24 stocks advancing against only 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.96%, while Small cap index was up by 0.96%.

The gaining sectoral indices on the BSE were Healthcare up by 1.73%, Bankex up by 1.57%, Capital Goods up by 1.44%, Realty up by 1.16% and Power up by 0.70%. While, Oil and Gas down by 0.32% and PSU down by 0.05% were losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.72%, Jindal Steel up by 2.69%, Sun Pharma up by 2.54%, L&T up by 1.75% and Hero Moto Corp up by 1.59%. On the flip side, ONGC down by 3.18%, Gail India down by 1.57%, Hindustan Unilever  down by 1.36%, Tata Steel down by 1.00% and Hindalco Inds down by 0.98%.

Meanwhile, ahead of crucial World Trade Organization (WTO) Inter ministerial meeting in Bali this week, the government has made it clear that during WTO’s ,meet, it will not compromise its stance on food security of poor and support to marginal farmers even if subsidy limits are breached. The government is sending a 30 member delegation, headed by Commerce and Industry Minister Anand Sharma, to attend the meeting.

Commerce Minister has said that concerns over the food security are non-negotiable and the country will secure and protect the right to food security of poor people and the right to sustenance of farmers.  By adding further, Anand Sharma said that India will engage with WTO members for fair and balanced outcome, which addresses the concerns of developing countries adequately, especially on food security. Meanwhile, the Commerce Minister is likely to face strong head winds in WTO’s meet as developed countries like US and Canada have raised concerns that food stockpile exercise of India and other developing nations to implement food security plans will breach the 10 percent subsidy cap under the WTO's Agreement on Agriculture (AoA). On the other hand, India expressed the need for amendment in AoA citing that it was calculated on price band of 1986-88 and is not relevant in the current situation.

WTO has suggested a four-year 'peace clause' as an interim solution and during this period no WTO member will attract penalty even if 10 percent cap is broken. India has strongly rejected the interim solution and has demanded a permanent solution to the issue. The country is of the view that interim solution means interim solution until a permanent solution is put in place and expects that all countries to commit for negotiating all issues for a permanent solution in coming WTO meeting.

The CNX Nifty is currently trading at 6,220.70 up by 44.60 points or 0.72% after trading in a range of 6,228.70 and 6,171.15. There were 41 stocks advancing against 9 declining on the index.

The top gainers of the Nifty were Ranbaxy up by 6.13%, IDFC up by 2.84%, Axis Bank up by 2.77%, ICICI Bank up by 2.68% and Sun Pharma up by 2.61%. On the flip side, ONGC down by 3.38%, HUL down by 1.60%, Gail India down by 1.57%, Power Grid down by 1.16% and Hindalco Inds down by 1.10% were the major losers on the index.

The Asian equity indices were trading mixed; Straits Times was up by 0.15%, Jakarta Composite up by 1.24%, Taiwan Weighted up by 0.09%, Hang Seng up by 0.43% and KLSE Composite up by 0.12%. While, Shanghai Composite down by 0.77%, Nikkei 225 down by 0.03%, and Seoul Composite down by 0.66%.