Benchmarks add gains; Nifty above 6150 mark

Indian equities added gains to continue firm trade in the late afternoon session on account of buying in frontline blue chip counters. The sentiments were on optimistic note after Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan stated that India’s CAD is expected to be around two percent of GDP during the current fiscal on the back of slackening imports and increased shipments. Traders were seen piling positions in Capital Goods, Bankex and HealthCare stocks, while selling was witnessed in Power, Metal and TECK sector. In scrip specific development, Tata Power was trading on a firm note after the Central Electricity Regulatory Commission (CERC), the electricity regulator allowed the company to raise tariffs and receive compensation to make up for losses incurred at its flagship Mundra plant in Gujarat. ICRA was trading firm after the company’s largest shareholder, Moody’s Corp came out with a conditional open offer to acquire up to 2.6 million shares in it at 2,000 rupees a share for about $84 million. Cadila Healthcare was trading in green after getting USFDA nod for painkiller injection.

On the global front, the Asian markets barring Straits Times were trading in red, while the European markets were trading on a mixed note. 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 in the ratio of 1256:1186 while 154 scrips remained unchanged.

The BSE Sensex is currently trading at 20785.68, up by 84.93 points or 0.41% after trading in a range of 20797.78 and 20637.30. There were 23 stocks advancing against 7 declines on the index.

The broader indices were too trading in green; the BSE Mid cap index was up by 0.32% and Small cap index gained 0.45%.

The top gaining sectoral indices on the BSE were, Capital Goods up by 2.42%, Bankex up by 0.90%, HealthCare up by 0.88%, Auto up by 0.66% and Oil & Gas was up by 0.49%. On the other hand the top losers included Power down by 1.54%, Metal down by 0.81%, TECK down by 0.48%, IT down by 0.43% and PSU down by 0.39%.

The top gainers on the Sensex were Tata Power up by 5.08%, Axis Bank up by 3.54%, L&T up by 2.94%, BHEL up by 2.52% and Gail India was up by 1.96%. On the flip side, NTPC down by 11.05%, Tata Steel down by 1.97%, Bharti Airtel down by 1.47%, TCS down by 1.21% and SSLT down by 1.08% were the top losers on the Sensex.

Meanwhile, in order to align the country with the global financial standards, India will adopt international financial standards from April 2015 for companies with a net worth of more than Rs 1,000 crore. Indian corporate affairs ministry is likely to notify soon all sections and rules of the new Companies Act to converge Indian Accounting Standards (IAS) with the International Financial Reporting Standards (IFRS). The Institute of Chartered Accountants of India (ICAI), the accounting regulator had submitted revised road map to corporate affairs ministry for the implementation of IFRS from next April.

It has become imperative for India to adopt IFRS which has already been implemented by 130 countries. The IFRS mandates extensive disclosures and is considered a more credible tool for accounting. In the first phase, IFRS will be implemented by large-sized companies having net worth of over Rs 1,000 crore. Meanwhile, during the second phase that will begin from April 1, 2016 will involve both listed and unlisted companies with a net worth of over Rs 500 crore but less than Rs 1,000 crore. The implementation of IFRS is expected to put significant impact on all sectors, especially banking and real estate. Further, the new accounting standards will help the investors for making mark-to-market projections and valuation of financial assets, among other things.

However, industry bodies such as Assocham, Ficci and CII and had sought postponement of implementation of IFRS arguing that the companies needed more time to adopt the global standards. At present, Indian companies doing business abroad and listed overseas prepare financial statements as per international standards.

The CNX Nifty is currently trading at 6,177.80, up by 22.35 points or 0.36% after trading in a range of 6,181.85 and 6,130.80. There were 35 stocks advancing against 15 decliners on the index.

The top gainers of the Nifty were Tata Power up by 5.14%, Axis Bank up by 3.43%, L&T up by 2.90%, Ranbaxy up by 2.72% and BHEL was up by 2.56%. On the flip side, NTPC down by 11.44%, Tata Steel down by 2.07%, Bharti Airtel down by 1.46%, NMDC down by 1.39% and Ambuja Cement down by 1.23% were the top losers on the index.

Most of the Asian equity indices were in red; Shanghai Composite shed 1.75%, Hang Seng declined by 0.80%, Jakarta Composite was down by 0.35%, KLSE Composite was lower by 0.05%, Nikkei 225 declined by 0.19%, KOSPI Composite was down by 0.45% and Taiwan Weighted lost 0.48%.

On the flip side, Straits Times up by 0.07% was the only gainer among Asian pack.

The European markets were trading on a mixed note; France’s CAC 40 was up 0.05%, Germany’s DAX was down 0.28% and UK’s FTSE 100 dropped 0.26%.