Markets climb to day’s high; volatility may emerge in the second half of F&O expiry session

Steadily gaining strength, Indian equity markets were now trading near day’s high point on sustained buying activities on the F&O expiry session. However, reversal of trend could took place given its F&O expiry session also as European futures indicate a flattish start, while Asian counterparts mostly have succumbed to selling pressure. On the global front, Asian share markets were mostly trading mixed following a flat finish on Wall Street and as concerns over opaque policy moves in China kept investors on edge amid a drought of major economic data. Back home, both, Sensex and Nifty, were comfortably trading past the crucial 20,900 and 6200 levels respectively, with gains of close to half a percent. Meanwhile, broader indices despite underperforming larger peers were holding their head above the water.

Most of the sectoral indices were trading in green on BSE, stocks from Capital Goods, Fast Moving Consumer Goods and Healthcare counters were the top gainers of the session. On the flip side, Metal, Realty and PSU counters were underperforming. Additionally, banking stocks too were trading higher, with State Bank of India gaining more than 1%. The overall market breadth on BSE, so far is in the favour of advances which have thumped declines in the ratio of 994:812; while 41 shares remained unchanged.

The BSE Sensex is currently trading at 20944.68, up by 92.21 points or 0.44% after trading in a range of 20952.04 and 20860.02. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index up by 0.17%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.05%, FMCG up by 0.79%, Healthcare up by 0.68%, Consumer Durables up by 0.59% and Oil and Gas up by 0.51%. While, Metal down by 1.80%, Realty down by 0.93% and PSU down by 0.17% were the losing indices on BSE.   

The top gainers on the Sensex were Gail India up by 3.08%, Wipro up by 1.78%, Sun Pharma up by 1.53%, ITC up by 1.49%, and BHEL up by 1.44%. On the flip side, SSLT down by 2.78%, Tata Steel down by 2.44%, Coal India down by 2.15%, Tata power down by 1.48% and Maruti Suzuki down by 0.68%.

Meanwhile, Oil Secretary Vivek Rae has reported that India is willing to pay $1.5 billion to Iran to partially clear its payments in arrears for oil following the partial easing of western sanctions on Tehran. This amount is precisely half of what the country roughly owes for Iranian crude, i.e, $3 billion, which got accumulated after a previous payment mechanism through Turkey's Halkbank was stopped under pressure from sanctions

Iran, in a deal inked on November 24, 2014 with six major powers, secured access to $4.2 billion in oil revenues from a number of countries that had been frozen abroad. The funds, as per the deal, were payable in eight transfers on a schedule that started with a $550 million payment by Japan on February 1. While, South Korea is set to make two payments in March totalling $1 billion, the next schedule for payment would come on April 10.

India could pay as much as $450 million to Tehran, the capital and largest city of Iran on March 1, if it satisfies targets set down in the November deal, according to the payment schedule. It can then receive two further tranches of $550 million on March 7 and April 10 without having to meet further conditions. However, payments from April 15 will be contingent on confirmation that Iran has kept its commitment to dilute all of its 20 percent enriched uranium to no more than 5 percent enriched uranium.

The CNX Nifty is currently trading at 6,223.20, up by 23.15 points or 0.37% after trading in a range of 6,225.15 and 6,202.10. There were 32 stocks advancing against 18 declining on the index.

The top gainers of the Nifty were Gail up by 3.41%, BPCL up by 2.30%, Sun Pharma up by 1.62%, Ambuja Cement up by 1.61% and Kotak Bank up by 1.60%. On the flip side, NMDC down by 3.23%, SSLT down by 2.76%, Tata Steel down by 2.40%, Coal India down by 2.30% and Ultratech Cement down by 2.02% were the major losers on the index.

The Asian equity indices were trading mixed; Hang Seng up by 0.74%, Shanghai Composite up by 0.12%, Seoul Composite up by 0.30% and Taiwan Weighted up by 0.29%. On the flip side, Nikkei down by 0.54%, Straits Times down by 0.58%, Jakarta Composite down 0.86% and KLSE Composite was down by 0.29%.