Benchmarks trim losses; trade continues in green

Indian equities trimed losses to continue in green hovering near the highest point of the day in the late afternoon session on account of buying at lower levels. Though the markets were trading on pessimistic mood from the early trade it managed to recover its losses after Reserve Bank of India Governor Raghuram Rajan stated that the country is better prepared for any eventuality in the economy now than it was six months ago. Investors were however bit cautious on report that India’s private sector output contracted for the seventh consecutive month in January as services sector output remained weak amid tough economic conditions.  Traders were seen piling positions in Auto, Realty and Metal stocks while selling was witnessed in FMCG and Oil & Gas sector stocks. In scrip specific development, SKS Microfinance was trading in green after the company doubled its profit guidance to Rs 125 crore for FY15.

On the global front, the Asian markets barring Hang Seng and Taiwan Weighted were trading in green, while the European markets were trading on a mixed note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,000 and 20,200 levels respectively. The market breadth on BSE was positive in the ratio of 1347:1012 while 138 scrips remained unchanged.

The BSE Sensex is currently trading at 20258.28, up by 46.35 points or 0.23% after trading in a range of 20268.00 and 20076.10. There were 17 stocks advancing against 11 stocks declining while 2 stocks remained unchanged on the index.

The broader indices continued to outperform; the BSE Mid cap index was up by 0.39%, while Small cap index up by 1.03%.

The gaining sectoral indices on the BSE were Auto up by 1.95%, Realty up by 1.64%, Metal up by 1.29%, Power up by 1.08% and PSU up by 0.90%. While, FMCG down by 0.86% and Oil & Gas down by 0.08% were the only losing indices on BSE.   

The top gainers on the Sensex were Tata Motors up by 3.50%, Tata Steel up by 3.19%, Gail India up by 2.72%, M&M up by 2.40% and Coal India up by 2.33%. On the flip side, ITC down by 1.77%, SSLT down by 0.70%, Maruti Suzuki down by 0.66%, Bharti Airtel down by 0.57% and Sun Pharma down by 0.56% were the top losers on BSE.

Meanwhiel, with an aim to resolve the difficulties faced by exporters and importers, the Reserve Bank of India (RBI) has liberalised the third party payment norms for import of goods by removing the ceiling of $100,000. Earlier, the amount of third party payment import transaction was capped at $100,000.

The apex bank also simplified certain documentation norms related with third party payments for exports and imports transactions. The RBI further noted that firm irrevocable order backed by a tripartite agreement for overseas transactions may not be insisted upon in certain cases by banks.

RBI further stated that third party payment made to a Financial Action Task Force (FATF) compliant country should be through the banking channel only. Further, concerned bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice and should also consider the FATF statements while handling such transaction.

The CNX Nifty is currently trading at 6,020.45, up by 19.55 points or 0.33% after trading in a range of 6,021.45 and 5,962.05. There were 33 stocks advancing against 16 declining on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Ranbaxy up by 6.72%, Tata Motors up by 3.53%, Tata Steel up by 3.34%, DLF up by 3.28% and Gail India up by 2.64%. On the flip side, ITC down by 1.80%, HCL Technologies down by 1.68%, Maruti Suzuki down by 0.60%, Bharti Airtel down by 0.55% and SSLT down by 0.51% were the major losers on the index.

The Asian equity indices were trading mostly in green; Seoul Composite up by 0.24%, Nikkei 225 up by 1.23%, Straits Times up by 0.11%, KLSE Composite up by 0.27% and Jakarta Composite up by 0.56%. On the other hand, Hang Seng down by 0.60% and Taiwan Weighted down by 2.34%. Markets in Shanghai remained closed on account of trading holiday.

The European markets were trading on a mixed note; France’s CAC 40 was up 0.02%, Germany’s DAX lost 0.10% and UK’s FTSE 100 gained 0.28%.