The frontline Indian equity benchmarks have edged slightly higher in early morning trade, with the NSE Nifty holding above the 5200 mark, after a newspaper report indicated that the Government could dilute the proposed GAAR norms aimed at checking misuse of tax treaties. Also, the Government has forecast a normal monsoon for a third year in a row, giving some relief to policymakers. In another positive development, the Union Cabinet has approved a proposal to hike the voting rights in private banks.
At 9:20 am ( IST), the BSE Sensex was 17,210 up 79 points over the previous close. It had earlier touched a day’s high of 17,216 and aday’s low of 17,134. It opened at 17,145.
NSE Nifty was quoting 5,217 up 28 points over the previous close.It has earlier touched a day’s high of 5,217 and a day’s low of 5,188. It opened at 5,189.
Infosys, Wipro, ICICI Bank, ONCG, HCL Tech, Sun Pharma, DLF, Tata Power,Sterlite, Bajaj Auto, HDFC Bank, M&M, Jindal Steel, Hindalco were among the notable leaders in the Sensex and the Nifty.
Coal India, HUL , Ranbaxy were among the notable losers in the Sensex and the Nifty
The BSE Small-Cap and BSE Mid-Cap index was trading flat.
Teck, Consumer Durables, Bankex,Oil and Gas, Realty,Metal , Auto,PSU, Power, FMCG, HC, IT indices are the gainers.
What is good about today's session is that the advance appears to be more broad based in nature so far. The market breadth is positive as the Small-Cap and Mid-Cap indices have also risen modestly. Most sectoral indices are trading with a positive bias with Power, Consumer Durables, Metals, Banking, Media and Infrastructure indices pacing the gains. Other sectoral plays on the two main bourses are also up marginally.
The two new entrants in the NSE Nifty - Asian Paints and Bank of Baroda are subdued in early trade. On the other hand, RCOM and Reliance Power, who have been removed from the Nifty, are trading slightly higher.
There is some despair on the street given that for many years, May to September has been more or less challenging for equities. We had a flattish start to trade today following an unusually sedate F&O expiry. However, there is a silver lining in the dark clouds. Things have perked up a wee bit amid reports that the Government could dilute the controversial GAAR to pacify agitating FIIs and breathe some life into the market.
Another positive news is that monsoon is likely to be normal yet again. Also, the Union Cabinet has approved raising the cap on voting rights in private banks.
The Nifty will see two new entrants today in Asian Paints and Bank of Baroda. They will replace R Power and RCOM. Important results for the day include ICICI Bank, Axis Bank, Jindal Steel, HCC, Hexaware and Siemens.
Asian markets are indecisive and largely flat today. US markets rallied overnight on hope of fresh stimulus from the Federal Reserve while European indices finished mixed. Markets in the UK and Germany rose, that in France was flat. Spanish stocks slid after the S&P downgraded the debt-stricken nation by two notches.
The VIX - better known as the fear gauge for any market - has steadily dropped. So, we could see dull and rangebound trade in the near term before there is any meaningful turnaround. Stick to a wait-and-watch approach and be stock specific.
Indian markets ended on a flat note on Thursday amid lack of major triggers to break beyond the range of 5130-5300. The Nifty has been going through a distribution phase since the last two months and a move below 5130 could accelerate the selling pressure in the near term.
Key Results Today: Axis Bank, Hexaware Tech, HCC, ICICI Bank, Indiabulls Financial, Jindal Steel, Mahindra Lifespace Developers, Siemens and Thomas Cook.
Trend in FII flows: The FIIs were net sellers of Rs 3.76bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net buyers of Rs 634.9mn, as per the provisional figures released by the NSE.
The FIIs were net sellers of Rs 1.82bn in the F&O segment on Thursday, according to the provisional NSE data.
The foreign funds were net sellers of Rs 2.8bn in the cash segment on Wednesday while the mutual funds were net sellers of Rs 1.09bn, according to the SEBI figures.
Global Data Watch: Bank of Japan Interest Rate Decision, Japan CPI, Japan industrial production, Japan retail sales, Japan unemployment rate, Japan household spending, Japan housing starts, US annualized GDP (Q1), US Real Personal Consumption Expenditures (QoQ) (Q1), US Reuters/Michigan Consumer Sentiment Index (Apr), UK Nationwide Housing Prices (MoM) (Mar) and Germany Gfk consumer confidence.