Markets hold on early gains; continue to trade in green

Indian bourses after surging to life-time high levels in early deals consolidated in noon trades holding on to their morning gains despite some profit booking. Profit booking at higher levels marginally corrected the benchmarks, however the major indices managed to remain in green supported by gains in healthcare, power and Teck stocks. Alhough, there was considerable weakness in metal and FMCG stocks, sentiment remained positive as foreign investors pumped more funds into Indian equities amid a firm trend in the Asian region. Foreign institutional investors (FIIs) bought shares worth a net Rs 385.66 crore in the previous session. Furthermore, appreciation in Indian rupee too supported the sentiments as domestic currency appreciated to around 59.70 per dollar level, strongest since July 30 on the back of high FIIs inflow. The Reserve Bank of India (RBI) has allowed overseas investors to hedge their currency risk in local exchanges, a move, which can further increase foreign capital inflows in the country.

SKS Microfinance, extending its 9% rally in past three trading sessions, has soared 13% to around Rs 245 after the company said it has completed the thirteenth securitization transaction during the financial year FY14 of Rs 159.80 crore. Wockhardt has surged nearly 16% to Rs 533, its sharpest intra-day gain since September 2013, on back of heavy volumes on bourses. Index heavyweight Reliance Industries (RIL) has risen by 1 percent to around Rs 952 after the company announced that the Supreme Court has appointed an international arbitrator in the KG D6 issue.

On global front, Asian equity indices were trading in green with Straits Times was up by 0.06% and Jakarta Composite up by 0.08%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,700 and 22,500 levels respectively. The market breadth on BSE was positive, out of 2,336 stocks traded, 1,503 stocks advanced, while 726 stocks declined on the BSE

The BSE Sensex is currently trading at 22,503.26 up by 56.82 points or 0.25% after trading in a range of 22,592.10 and 22,482.21. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trade in green; the BSE Mid cap index was up by 0.96%, while Small cap index up by 1.02%.

The gaining sectoral indices on the BSE were Healthcare up by 1.69%, Teck up by 0.98%, Consumer Durables up by 0.96%, Oil and Gas up by 0.90% and Power up by 0.81%. While, FMCG down by 1.56% and Metal down by 0.56% were the losing indices on BSE.   

The top gainers on the Sensex were Bharti Airtel up by 3.69%, Tata Motors up by 1.84%, ICICI Bank up by 1.68%, Cipla up by 1.53% and Sun Pharma up by 1.37%. On the flip side, ITC down by 2.53%, Axis Bank down by 1.46%, Hindalco Inds down by 1.41%, SSLT down by 1.12% and HDFC Bank down by 1.02%.

Meanwhile, as per the Confederation of Indian Industry (CII), India can achieve 6.5 percent economic growth in the next financial year if a strong reform-minded government comes to power after the upcoming parliament elections. Indian economy’s growth slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarter of FY14.

The president of the Confederation of Indian Industry (CII) Ajay S Shriram has asserted that as economy is struggling with slowdown, systemic reforms could provide impetus to growth, while a fractured mandate could trigger panic in an already subdued economy. The CII President further added that with slowing growth and high inflation adversely impacting employment, the CII will urge the next Government to focus on reviving growth and generating new jobs.

The CII also proposed 100-day action agenda for the new Government expressing need for a strong economic revival package and right implementation of policies to create as many as 150 million jobs during the next 10 years. The CII, in its 100-day action agenda, has called for introduction of Goods and Services Tax, fast-tracking stalled projects,  timely implementation of Delhi Mumbai Industrial Corridor, containment of subsidies and fiscal consolidation, monetary easing, maintenance of a competitive exchange rate and increasing public capital investments and National Investment and Manufacturing Zones, among others.

The CNX Nifty is currently trading at 6,737.20 up by 16.15 points or 0.24% after trading in a range of 6,763.50 and 6,729.70. There were only 31 stocks advancing against 19 declining on the index.

The top gainers of the Nifty were Bharti Airtel up by 3.87%, IDFC up by 2.88%, Lupin up by 2.10%, Tata Motors up by 1.93% and BPCL up by 1.86%. On the flip side, ITC down by 2.36%, Jindal Steel down by 2.25%, BHEL down by 1.65%, Hindalco down by 1.63% and SSLT down by 1.56% were the major losers on the index.

Asian equity indices were trading in green; Straits Times was up by 0.06% to 3,200.45, Jakarta Composite up by 0.08% to 4,878.03, Hang Seng up by 0.28% to 22,510.35, Taiwan Weighted was up by 0.36% to 8,905.45, Shanghai Composite up by 0.50% to 2,057.85 and Nikkei 225 up by 1.01% to 14,940.59.