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Benchmark indices continue to trade higher on broad based buying amid firm global cues. The rally in front line stocks such as ICICI Bank, RIL, L&T have added nearly 150 points to the rise on the 30-share Sensex.
At 1 PM, the 30-share Sensex is up 337 points at 27,464 and the 50-share Nifty has gained 92 points at 8,252.
The rupee was trading at 63.06 against dollar on Friday versus its previous close of 63.11/12. It rose to as much as 62.99 against the greenback earlier.
According to a finance ministry report, the government expects key-interest rates to remain unchanged until end of March quarter while GDP growth rate for fiscal year 2015 is foreseen to be around 5.5%.
In the broader market, both BSE midcap and smallcap indices are moving in-line with the front-liners with gains of 1% and 1.2% each. Market breadth in BSE is positive with 1,515 advances against 882 declines.
Meanwhile, selling by foreign institutional investors continued and they were net sellers in Indian equities worth Rs 874.89 crore on Thursday, as per provisional stock exchange data.
Key Stocks:
On the sectoral front, BSE Capital Goods and Metal indices are up over 2%. However, FMCVG nad Realty indices are trading with marginal losses.
The Union Cabinet’s approval to the Constitution amendment Bill for implementing the goods and services tax (GST) earlier this week has paved the way for the Bill’s introduction in Parliament. This implies a boost for the long-pending indirect tax reforms. Yet, executives in India’s Rs 3-lakh-crore fast-moving consumer goods (FMCG) sector, who were earlier lobbying for implementation of GST, now are cautiously optimistic. Symphony up 9% while TTK prestige and Whirlpool up 1% each.
According to a finance ministry report, the government expects key-interest rates to remain unchanged until end of March quarter while GDP growth rate for fiscal year 2015 is foreseen to be around 5.5%. Therefore, bank shares have come off early morning highs and are trading mixed.
ICICI Bank has gained over 2%. According to media reports, the bank is in the process of sshrinking its international balance sheet by selling its subsidiary in Russia, repatriating capital from its UK (United Kingdom) and Canada arms.
IT stocks have gained on firm first quarter results by Accenture. Infosys, TCS and Wipro have gained between 1-2%.
L&T has gained over 2%. The company has completed the definitive investment agreement with Canada Pension Plan Investment Board (CPPIB) for investment of Rs 2,000 crore in the engineering firm.
Auto stocks have gained as the government prepares to get the Goods and Services Tax, Bill passed by the parliament. After receiving cabinet approval, the Goods and Services Tax (GST) Constitutional Amendment Bill is likely to be introduced in the Lok Sabha on Monday.
Tata Motors has gained around 1.5%. According to media reports, Jaguar Land Rover,UK subsidiary of Tata Motors, is recalling 1,571 Jaguar XJ luxury sedans in the United States for a possible braking issue.
Among pharma shares, Sun Pharma and cipla are under pressure while Dr Reddys Lab has gained close to 2%. The company has closed the acquisition of Habitrol Brand, an over-the-counter nicotine patch, from Novartis.
Metal stocks are trading firm. Sesa Sterlite has gained around 2.5% while Tata Steel and Hindalco have gained up to 2% each.
Oil and gas shares are trading mixed. Reliance has gained around 2.5% and ONGC is up by 1.9%. GAIL is trading with marginal gains. The Supreme Court has given green signal to GAIL to take part in the tendering process for laying Ennore-Tuticorin pipeline.
Asian Markets:
Asian shares enjoyed their best day in 15 months on Friday, after Wall Street boasted its biggest two-day advance since late 2011 amid relief the Federal Reserve was in no rush to withdraw stimulus from the US economy. The gains came even as oil stayed under pressure, suggesting equity investors were beginning to see the positives in lower fuel costs and increased consumer spending power. Japan's Nikkei climbed 2.1% to erase most of it's recent losses, while Australia's main index romped ahead by 2.2%.
In line with the large counter parts, BSE Midcap and Smallcap indices are up between 1-1.5%.
The market breadth is healthy on the BSE with 1,602 gainers and 975 losers.
