Firm trade prevails; Nifty surpasses 6,100 mark

sankrit

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Indian equities added gains to continue firm trade in the late afternoon session on account of buying in front line counters and taking cues from global counterparts. The sentiments were on upbeat mood from the start of the trade after the US Federal Reserve’s announced its decision to continue with the stimulus programme and on hopes of dovish policy measures by the Reserve Bank of India. Traders were seen piling positions in Bankex, Realty and Capital Goods stocks, while selling was witnessed in IT sector stocks. In scrip specific development, Yes Bank rallied after major brokerage houses have either initiated a buy call or have an overweight rating on the stock with a higher target price. Zee Entertainment Enterprises (ZEE) was trading in green continuing upward journey for the third consecutive session after foreign brokerage house Credit Suisse maintained its outperform rating on the stock saying that the broadcaster is the best placed to benefit from digitization.

On the global front, all the Asian markets were trading in green while the European markets were too trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,100 and 20,600 levels respectively. The market breadth on BSE was positive in the ratio of 1317:906, while 136 scrips remained unchanged.

The BSE Sensex is currently trading at 20637.89, up by 675.73 points or 3.39% after trading in a range of 20,659.84 and 20,347.30. There were only 29 stocks advancing against 1 decline on the index.

The broader indices were too trading in green; the BSE Mid cap and Small cap index were trading up by 2.08% and 1.19% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 6.87%, Realty up by 5.35%, Capital Goods up by 4.70%, PSU up by 3.80% and FMCG up by 3.36% while, IT down by 0.08% remained the only losing indices on BSE.

The top gainers on the Sensex were, SBI up by 7.84%, ICICI Bank up by 6.73%, Hindustan Unilever up by 6.21%, Tata Steel up by 6.19% and L&T up by 6.17%. On the flip side, Wipro down by 1.90% was the only losers on the Sensex.

Meanwhile, the government is likely to allow foreign direct investment (FDI) in the railways sector, which is facing a cash crunch, in order to develop rail lines between project sites and existing network. The move will help in attracting more FDI besides helping in the development of infrastructure for industrial purposes.

The Department of Industrial Policy and Promotion (DIPP) has proposed to permit 100 percent FDI under automatic route that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network. It will be first-to-last mile connectivity between ports, coal mines to the existing railway freight stations and will smooth the movement of raw materials from mines to ports, it added. The DIPP has completed consultations with the concerned ministries on the proposal and will soon seek Cabinet nod for the proposal.

Presently, Indian industrial development and exports have been suffering due to poor infrastructure, which hampers output and raises the cost of production. Indian railways can play an important role in providing a reliable transport facility necessary for promoting industrial growth in the country. The move will provide adequate funds to the railway ministry, whose effort towards attracting funds through public-private partnership for infrastructure projects have failed. Further, railway ministry expects Rs 25,000 loss in the passenger segment for this year.

The CNX Nifty is currently trading at 6,113.65, up by 214.20 points or 3.63% after trading in a range of 6,123.25 and 6,040.15. There were 47 stocks advancing against 3 declines on the index.

The top gainers of the Nifty were PNB up by 8.94%, Bank of Baroda up by 8.56%, Asian Paints up by 8.53%, JP Asscoiate up by 8.09% and SBI up by 7.90%. On the flip side, NMDC down by 0.82%, Power Grid down by 0.35% and HCL Technologies down by 0.18% were the top losers on the index.

The Asian equity indices were trading in green; Nikkei 225 was up by 1.80%, Straits Times up by 1.88%, Hang Seng up by 1.67%, Jakarta Composite up by 4.78% and KLSE Composite up by 1.25%.

South Korean markets are closed from September 18 for the rest of the week for the Chuseok holidays. Trade will resume on September 23. Shanghai Composite and Taiwan Weighted remained closed on account of Mid-autumn Festival.

The European markets were trading in green; France’s CAC 40 was up 1.10%, Germany’s DAX added 1.19% and UK’s FTSE 100 gained 1.36%.
 
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