Benchmarks trim gains; trade continues in green

Indian equities trimmed gains but continue to trade firm in the late afternoon session on account of buying in frontline counters taking cues from global counterparts. The sentiments were on optimistic note from the early trades and it got a further push after headline inflation dropped to a five-month low on the back of a softening in vegetable prices. The World Bank’s projection that India’s economy will grow over 6 percent in 2014-15 and 7.1 percent by 2016-17 as global demand recovers and domestic investments increase further added some optimism on the street. Traders were seen piling positions in Capital Goods, Bankex and Metal stocks while selling was witnessed in Consumer Durables, FMCG and Health Care sector stocks. In scrip specific development, YES Bank was trading in green after the bank’s third quarter net profit jumped 21.4 percent, higher-than-expected to Rs 415.6 crore supported by non interest income.

On the global front, most of the Asian markets were trading in green, while the European markets were too trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,250 and 21,200 levels respectively. The market breadth on BSE was positive in the ratio of 1261:1241 while 159 scrips remained unchanged.

The BSE Sensex is currently trading at 21228.62 up by 195.74 points or 0.93% after trading in a range of 21,285.79 and 21,091.46. There were 29 stocks advancing while 1 stock was declining on the index.

The broader indices were too trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index up by 0.23%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.75%, Bankex up by 1.39%, Metal up by 1.08%, Auto up by 1.06% and Realty up 0.99%. While, Consumer Durables down by 0.90% and FMCG down by 0.03% were the only losing indices on BSE.  

The top gainers on the Sensex were L&T up by 2.59%, ICICI Bank up by 2.41%, Coal India up by 2.14%, Hero MotoCorp up by 1.86% and Hindalco Industries up by 1.78%. On the flip side, Axis Bank down by 0.28% was the sole loser on the index.

Meanwhile, in order to bring comprehensive policy for inspection, verification and monitoring in the forest clearance procedure, the Environment Ministry has kicked off a fast-track review of the cumbersome procedures involving green clearances that often take years. Now, the ministry has sought for India Inc's views on its revised draft policy to grant of forest clearance. Presently, the forest clearance procedures are considered by industry as the single-biggest drag on India's investment momentum and stalling projects.

The ministry has proposed several changes in draft such as third party monitoring by accredited institutions and forest administration, self-monitoring by project developers and a structure for a transparent, effective and unbiased system to deal with violations of clearance conditions.

Meanwhile, the government is hopeful of putting in place a simplified forest clearance system before its term ends in a few months. The new environment and forest minister Veerappa Moily has approved several long-stalled investments during the past three weeks in order to ensure more predictability for prospective investors. Furthermore, the Cabinet panel headed by Prime Minister Manmohan Singh, has recently cleared investment projects of over Rs 6 lakh crore. Now the cabinet panel is shifting its focus to its other key area including a review of ministries' procedures to grant and refuse projects’ approvals and setting a framework for accelerating these decisions to boost the investment and economic growth.

The CNX Nifty is currently trading at 6,299.75, up by 57.90 points or 0.93% after trading in a range of 6,316.70 and 6,265.30. There were 44 stocks advancing against 6 declining ones on the index.

The top gainers of the Nifty were L&T up by 2.79%, NMDC up by 2.68%, ICICI Bank up by 2.56%, IDFC up by 2.50% and Ultratech Cement up by 2.48%. On the flip side, Ranbaxy Laboratories down by 2.98%, Cairn India down by 1.15%, Lupin down by 0.95%, Axis Bank down by 0.37% and BPCL down by 0.11% were the top losers on the index.

The Asian equity indices were trading mostly in green; Hang Seng was up by 0.49%, Jakarta Composite up 1.22%, Nikkei 225 up by 2.50%, Straits Times up by 0.54%, Seoul Composite up by 0.37% and Taiwan Weighted up by 0.64%.

On the flip side, Shanghai Composite was down by 0.17% and KLSE Composite down by 0.69%.

The European markets were trading in green; France’s CAC 40 was up 0.61%, Germany’s DAX added 0.89% and UK’s FTSE 100 gained 0.36%.