Muhurat trading: Markets start Samvat 2072 on a firm note

Private sector banks were among the top gainers in early trades

Markets have started the customary 'Muhurat' trading session to usher in the new year Samvat 2072 on a firm note after the government on Tuesday eased regulations on foreign direct investment in key sectors.

At 5:46pm, the 30-share Sensex was up 132 points at 25,875 and the 50-share Nifty was up 42 points at 7,834.

The government on Tuesday eased FDI regulations in 15 sectors with single-brand retail, private sector banking, construction, defence and broadcasting to benefit the most. The Department of Industrial Policy and Promotion also raised the cap for approval by the Foreign Investment Promotion Board to Rs 5,000 crore from Rs 3,000 crore earlier. Further, the government also announced full fungibility with regards to private sector banking as foreign institutional investors and foreign portfolio investors can now invest upto 74% as long as no change in control.

Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 662 crore on Tuesday, as per provisional stock exchange data. In November till date, FIIs were net sellers in equities worth Rs 430 crore. Foreign funds have been net sellers in May, June, August & September with August witnessing the highest outflows this calendar
year, at Rs 17,209 crore

GLOBAL MARKETS

Asian markets ended mixed with Japan and China closing with marginal gains. Japan's benchmark Nikkei ended up 0.1% while China's Shanghai Composite ended 0.3% higher. However, Hong Kong's Hang Seng ended down 0.2% weighed down by oil shares amid weak global crude oil prices while Straits Times ended down 0.5%.

European shares were trading higher amid encouraging earnings with beverage major Carlsberg gaining the most. Among the major indices, DAX was up 0.9%, CAC-40 and FTSE-100 were up over0.5% each.

SECTORS & STOCKS

All sectoral indices were in the green led by Realty index up 2% followed by Bankex among others.

Private banks Axis Bank, Yes Bank and Kotak Mahindra Bank as they would benefit the most after full fungibility for foreign investment in banking announced by the government.

In the realty space, IndiaBulls Real Estate, HDIL and Sobha gained after restrictions were removed on floor area, capitalisation in addition to 100% FDI under automatic route for townships, mall and business centres.

Direct-to-home companies such as Dish TV and cable firm Hathway Cable & Datacom were up 3-6% on 100% FDI with up to 49% under the automatic route and over 49% under the approval route.