Benchmarks edge higher on better IIP, CPI numbers

Indian equity benchmarks edged higher and continued to trade firm on account of buying emerged in select heavyweights. Market sentiments remained upbeat with the industrial production expanded by 0.1% in January even as manufacturing woes continued and CPI inflation came in better than expected, easing to 8.1% in February from 8.8% in January. Sentiments got some support as the Rupee and bonds rallied after better-than-expected consumer data. Consistent buying from foreign institutional investors (FIIs) in the past several consecutive sessions also too aided the sentiments.

On the global front, in Asia, most of the markets remained higher ahead of a batch of key Chinese economic data that may offer clues about the extent of any slowdown. Back home, traders were buying, Bankex, Oil & Gas and Auto stocks, while selling was seen in IT, Teck and Healthcare. Infosys edged lower on reports that IT major expects sluggish growth in January-March (Q4FY2014) quarter mainly due to muted spending by clients, especially in the retail sector.

The market breadth on BSE remains positive with advances to declines in the ratio of 1169:720. BSE Sensex and NSE Nifty were comfortably trading near their psychological 21,900 and 6,500 levels respectively. The BSE Sensex is currently trading at 21977.92 up by 121.70 points or 0.56% after trading in a range of 21987.40 and 21720.13. There were 27 stocks advancing against 3 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.66% and Small cap index gained 0.44%.

The top gaining sectoral indices on the BSE were, Bankex up by 2.31%, Oil & Gas up by 2.19%, Auto up by 1.41%, Capital Goods up by 1.12% and Metal up by 1.12%, while IT down by 2.97%, Teck down by 2.39% and Healthcare down by 0.18% were the only losers on the sectoral index.

The top gainers on the Sensex were SBI up by 2.39%, ICICI Bank up by 2.25%, RIL up by 2.23%, HDFC Bank up by 2.16% and ONGC up by 2.08%. On the flip side, Infosys was down by 7.36%, Sun Pharma was down by 3.38% and Wipro was down by 0.58% were the only losers on the Sensex.

Meanwhile, with an aim to counter money laundering and terror financing through the capital markets, the Securities and Exchange Board of India (SEBI) has tightened norms and asked capital market entities to conduct detailed risk assessment of their clients, including those linked to countries facing international sanctions. The SEBI latest move came ahead of general elections scheduled for April-May as such period typically witness a spurt in money laundering through the capital markets.

As per the SEBI new norms, registered intermediaries shall carry out risk assessment to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk with respect to its clients, countries or geographical areas, nature and volume of transactions, payment methods used by clients. Further, the risk assessment shall be documented, updated regularly and made available to competent authorities and self regulating bodies, as and when required.

Market intermediaries have been told to appoint designated directors to ensure compliance with new norms, who would face penal action for any lapses and also allowed to use a third party to carry out due diligence and determine the identity of clients and beneficiaries of the funds. Besides, stock exchanges have been asked to monitor the compliance of various entities through half-yearly internal audits and inspections and keep SEBI informed on these issues. Regarding the mutual funds companies, SEBI notified that compliance of the circular would be monitored by the boards of asset management companies and the trustees and in case of other intermediaries, by their board of directors.

The CNX Nifty is currently trading at 6,551.05 up by 34.15 points or 0.52% after trading in a range of 6,551.90 and 6,487.55. There were 44 stocks advancing against 6 declines on the index.

The top gainers of the Nifty were BPCL up by 4.26%, Kotak Bank up by 2.61%, SBI up by 2.36%, PNB up by 2.27%, and Reliance Industries up by 2.24%. On the flip side, Infosys down by 7.39%, Sun Pharma down by 3.71%, Wipro down by 0.89%, Ranbaxy down by 0.88% and Lupin down by 0.54% were the top losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite increased 24.71 points or 1.24% to 2,022.40, Hang Seng rose 66.55 points or 0.30% to 21,968.50, Jakarta Composite soared by 30.7 points or 0.66% to 4,715.09, KLSE Composite climbed 1.69 points or 0.09% to 1,820.29, Nikkei 225 surged by 77.13 points or 0.51% to 14,904.69, KOSPI Composite spurted by 8.16 points or 0.45% to 1,941.11 and Taiwan Weighted was up by 65.38 points or 0.75% to 8,750.11. On the flip side, Straits Times was down by 9.38 points or 0.31% to 3,087.09.