Markets trade at intra-day high level in afternoon session

Indian equity benchmarks paired all early losses and reached at intra-day high level in afternoon session amid buying witnessed in frontline blue-chip stocks such as Tata Power, L&T and Axis Bank among others. Investors’ sentiments got some support from PMEAC Chairman C Rangarajan’s statement that India's Current Account Deficit (CAD) is expected to be around two percent of GDP during the current fiscal on the back of slackening imports and increased shipments. Capital goods was top performing index on BSE up by around 2.01% followed by healthcare and auto both up by 0.60%. On stock specific movement, Tata Power, Axis Bank and L&T were trading up by over 2.30%, while, NTPC, TCS and Tata Steel were trading down by over 1.30% on BSE.

DCM Shriram has surged almost 6% to nearly Rs 71 after its board approved a buyback of equity shares at a maximum price of Rs 90 per share from the open market. On the other hand, NTPC has dipped 10% to around Rs 119 after the Central Electricity Regulatory Commission (CERC) has allowed higher tariff as well as compensation of Rs 329 crore for Tata Power's 4,000-MW Mundra project in Gujarat. Credit Analysis and Research (CARE) has plunged nearly 6% to around Rs 805 after the IDBI rejected the bids received from the potential investors as they were not found 'acceptable.

On global front, Asian equity indices were trading in red with Nikkei down by 0.15% and Hang Seng down by 1.16%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,150 and 20,700 levels respectively. The market breadth on BSE was positive, out of 2,183 stocks traded, 1,123 stocks advanced, while 924 stocks declined on the BSE.

The BSE Sensex is currently trading at 20,724.64 up by 23.89 points or 0.12% after trading in a range of 20,724.64 and 20,637.30. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.44%.

The gaining sectoral indices on the BSE were Capital Goods up by 2.01%, Healthcare up by 0.90%, Auto up by 0.67%, Realty up by 0.36% and FMCG up by 0.30%. While, Power down by 1.16%, IT down by 0.58%, Teck down by 0.45%, Consumer Durable down by 0.37% and Metal down by 0.35% were the losing indices on BSE.   

The top gainers on the Sensex were Tata Power up by 5.34%, Axis Bank up by 2.58%, L&T up by 2.31%, BHEL up by 2.13% and Dr Reddy’s Lab up by 1.18%. On the flip side, NTPC down by 9.72%, TCS down by 1.40%, Tata Steel down by 1.34%, HDFC Bank down by 0.65% and RIL down by 0.45%.

Meanwhile, the Reserve Bank of India (RBI) Governor Raghuram Rajan has asserted that central banks of developed nations must also consider emerging nations while framing monetary policies. Underscoring that India is well placed to weather any financial crisis, RBI Governor has highlighted that advanced nations must recognize the impact of their monetary policy decisions on other economies.

Referring to the US Federal Reserve tapering, Raghuram Rajan emphasized that the US needs to take heed of countries vulnerable to the stimulus withdrawal. As the US Fed has started gradual withdrawal of its fiscal stimulus, India and other emerging economies have been asking the US to be more predictable in monetary policy. The US Fed has reduced its monthly bond purchases by $20 billion to $65 billion amid signs of an improving US economy. However, its recent move has caused flight of capital out of emerging economies, which has in turn affected their currencies.

Meanwhile, at the conclusion of two-day summit of G20 on February 22-23, all central banks maintain their commitment that monetary policy settings will continue to be carefully calibrated and communicated, in the context of continuing exchange of information and being mindful of impacts on the global economy.

The CNX Nifty is currently trading at 6,157.10 up by 1.65 points or 0.03% after trading in a range of 6,157.10 and 6,130.80. There were only 30 stocks advancing against 20 declining on the index.

The top gainers of the Nifty were Tata Motors up by 5.20%, Axis Bank up by 2.46%, L&T up by 2.14%, BHEL up by 2.12% and Lupin up by 1.81%. On the flip side, NTPC down by 9.93%, Tata Steel down by 1.67%, TCS down by 1.45%, Power Grid down by 1.15% and Jindal Steel down by 1.14% were the major losers on the index.

The Asian equity indices were trading in red; Nikkei down by 0.15%, Hang Seng down by 1.16%, Shanghai Composite down by 1.72%, Jakarta Composite down by 0.20%, KLSE Composite down by 0.21%, Taiwan Weighted down by 0.50% and Seoul Composite down by 0.39%. While, Straits Times up by 0.03%.