Benchmarks extend their gains in late morning

Benchmarks extend their gains in late morning deals amid buying witnessed in selected frontline blue chip stocks. Sentiments got some support on report that foreign institutional investors (FIIs) bought shares worth a net Rs 309.70 crore on December 31, 2013. Meanwhile, the output of eight core sector industries grew 2.5% during April-November, showing signs of recovery. Core sector grew 1.7 per cent in November after shrinking 0.6 per cent in October, though it was much lower than 5.8 per cent growth last November. However, gains remained capped after India’s fiscal deficit in the April-November period reached 94% of the targeted budgetary estimate of Rs 5.42 lakh crore, raising concerns that India may well overshoot its ambitious target of containing the deficit at 4.8% of GDP. Some cautiousness also crept in as the retail inflation for industrial workers inched up marginally to 11.47 per cent in November compared to 11.06 per cent in October and 9.55 per cent in the same month last year due to higher prices of food items.

On the global front, The US markets snapped the strong year 2013 on an upbeat note, traders remained in jubilation mood despite thin volumes, while release of a report from the Conference Board showing a bigger than expected rebound of consumer confidence too aided to the sentiments. However, all the major Asian markets are closed today on account of New Year. Back home, traders were buying, Realty, Healthcare and Consumer Durables while selling was seen in IT, Teck and Power on the BSE. Auto stocks saw some buying activity ahead of the release of monthly sales figures. Hero MotoCorp rose 0.7 per cent, Mahindra and Mahindra gained 0.6 per cent and Maruti Suzuki added 0.5 per cent.

The market breadth on BSE remains positive with advances to declines in the ratio of 1128: 514. BSE Sensex and NSE Nifty were comfortably trading near their psychological 21,100 and 6,300 levels respectively. The BSE Sensex is currently trading at 21186.10 up by 15.42 points or 0.07% after trading in a range of 21244.35 and 21166.55. There were 22 stocks advancing against 8 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.63% and Small cap index gained 0.83%.

The top gaining sectoral indices on the BSE were, Realty up by 1.83%, Healthcare up by 0.69%, Consumer Durables up by 0.66%, Metal up by 0.49% and Capital Goods up by 0.45%, while IT down by 0.32%, Teck down by 0.17% and Power down by 0.07% were the only losers on the sectoral index.

The top gainers on the Sensex were Coal India up by 0.95%, Hero MotoCorp up by 0.73%, Sun Pharma up by 0.63%, Cipla up by 0.61%, and L&T up by 0.61%. On the flip side, Tata Power was down by 0.93%, BHEL  was down by 0.48%, Wipro was down by 0.47%, TCS was down by 0.37% and Infosys was down by 0.34% were the top losers on the Sensex.

Meanwhile, As per the Chairman of the Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan, Indian economy is likely to record 6-6.5 per cent growth in 2014-15 as recent policy measures taken by the government will provide impetus to growth by next fiscal. Rangarajan also asserted that the recent pick up in Indian exports will sustain in the next fiscal on the back of reviving demand in developed economies.

Regarding the country’s current account deficit (CAD), Rangarajan felt that India's current account deficit will come in at less than 3 per cent of GDP in 2014-15, however, value of gold imports is expected to be higher in next fiscal. Referring to rising food inflation in the country, Rangarajan is quite confident that food inflation will soften in the coming future. Further, he added that steep increase in food inflation was mainly due to high vegetables prices, which are expected to come down in the near term.

Indian economy’s growth slowed down to a decade low of 5 per cent in the previous fiscal on account of low investment, weak domestic demand, rupee depreciation and global economic turmoil. Further, rising inflation has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country.

The CNX Nifty is currently trading at 6,312.60 up by 8.60 points or 0.14% after trading in a range of 6,327.20 and 6,301.65. There were 34 stocks advancing against 15 stock declines on the index while 1 stock remains unchanged on index. 

The top gainers of the Nifty were Asian Paints up by 2.27%, DLF up by 2.04%, Ranbaxy up by 1.72%, Lupin up by 1.48% and Coal India up by 1.00%. On the flip side, Tata Power down by 0.99%, Wipro down by 0.63%, BHEL down by 0.51%, Grasim down by 0.50% and TCS down by 0.43% were the top losers on the index.

All the major Asian equity indices remained closed for trade today on account of the New Year.