Benchmarks continue to trade upbeat on sustained buying activities

Although not near day’s high point, Indian equity markets continue to trade sanguine on sustained buying activities by both funds and retail investors, thanks to optimistic global set-up. Sentiment fortified on the back of strong flows from foreign institutional investors (FIIs), who were net buyers of 9.9 billion rupees worth of shares on Friday, according to exchange data. Nevertheless, dovish comments from PMEAC’s chairman, also added to the upside trigger of equity markets. In a potential good news for the economy, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan, underscored that he expects, a fall in vegetable prices to likely ease the headline inflation and retail inflation to 6.5 percent and 9.20 percent respectively in December. Back on Dalal Street, Sensex and Nifty, were trading above the crucial 21,100 and 6,300 levels respectively. Meanwhile, broader indices too putting up huge amount of gains, were rallying over a percent.

Closer home, Asian stocks inched cautiously higher on Monday encouraged by record highs on Wall Street, though anxiety over a credit squeeze in China has weighed on shares there while adding to pressure on emerging market currencies.

Back home, amidst across the board buying activity, no sectoral indices were trading in red, however stocks from Realty, Consumer Durables, Banking, Capital Goods were the top gaining sectoral indices on BSE. However, shares of Tyre companies, MRF, Ceat, Apollo Tyres, were down on profit-booking on reports that the government has hiked customs duty on imported rubber. The overall market breadth on BSE is in the favour of declines which have thumped advances in the ratio of 1427:766; while 137 shares remained unchanged.

The BSE Sensex is currently trading at 21149.77, up by 70.05 points or 0.33% after trading in a range of 21207.89 and 21080.54. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices too added some more ground; the BSE Mid cap and Small cap index were trading up by 1.35% and 1.20% respectively.

With across the board buying taking place, no sectoral indices were trading in red. The gaining sectoral indices on the BSE were Bankex up by 1.22%, Capital Goods up  by 1.74%, Realty up by 3.49%, Power up by 1.10% and Oil & Gas up by 0.81%.

The top gainers on the Sensex were Hindalco Inds up by 3.15%, BHEL up by 2.81%, Tata Steel up by 1.54%, Hero Motocorp and Axis Bank were up by 1.53% each. On the flip side, Infosys down by 1.89%, Tata Power down by 1.10%, HDFC down by 0.86%, TCS and Coal India down by 0.51% each respectively.

Meanwhile, India’s indirect tax collections grew by 5 percent to Rs 3,07,568 crore during the April-November period of current fiscal as against Rs 2,93,145 recorded in the same period of previous fiscal. Indirect tax collections, which include excise, customs and service tax, is the main source of revenue for the government.

During the April-November’ FY14, service tax collections grew by 16 percent to Rs 92,095 crore, while Customs' collection was up by 7 percent to Rs 1,11,844 crore. However, excise collections dropped 5.1 percent during the period to over Rs 1,03,629 crore, against Rs 1,09,180 crore in the same period in the last fiscal year owing to the slow manufacturing activities in the country.

The Government has set indirect tax collections target of Rs 5.65 lakh crore for 2013-14, up from Rs 4.73 lakh crore in the last fiscal. In order to enhance tax collections, the government has been taking measures as India's fiscal deficit, the difference between government receipts and spending, touched Rs 4.57 lakh crore or 84.4% of budget estimates in the first seven months of the current fiscal, reflecting signs of stress in government finances. Meanwhile, the government has expressed confidence that fiscal deficit will be contained within set target at 4.8% of GDP in the current fiscal.

The CNX Nifty is currently trading at 6,300.75, up by 26.50 points or 0.42% after trading in a range of 6,310.75 and 6,266.95. There were 37 stocks advancing against 13 declining on the index.

The top gainers of the Nifty were DLF up by 4.91%, PNB up by 3.90%, Jindal Steel up by 3.41%, Hindalco Inds up by 3.01% and JP Associates up by 2.73%. On the flip side, Infosys down by 1.90%, HDFC and Tata Powers down by 1.05%, Power Grid down by 0.80% and Lupin down by 0.71% were the major losers on the index.

Most of the  Asian equity indices were trading in green; Hang Seng up by 0.42%, Seoul Composite up by 0.68%, Taiwan Weighted up by 0.57%, Straits Times up by 0.48% and Shanghai Composite up by 0.09%. While, Jakarta Composite down by 0.63% and KLSE Composite down by 0.30%.