Nifty holds 7,800 mark; FMCG, IT shares lead gains

Markets are trading higher with Sensex and Nifty gaining around 0.5% after the government accepted the recommendation of the Shah Panel. Renewed buying can be seen among FMCG and Realty segments.

By 10:30, the Sensex was higher by 143 points at 25,840 and the Nifty has gained 48 points at 7,834.

The broader markets are, however, outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained almost 1%.

The top gainers from the Sensex pack are TCS, ITC, Lupin, Reliance Industries and Lupin.

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Updated at 9:30

Markets have turned choppy after making a positive start as the government accepted the recommendation of the Shah Panel report stating that Minimum Alternate Tax (MAT) should not be imposed on overseas portfolio investors retrospectively.

By 9:30, the Sensex was higher by 17 points at 25,714 and the Nifty has gained 2 points at 7,786.

Among broader markets, BSE Midcap index is trading marginally positive whereas the Smallcap index has gained by 0.6%. Market breadth remains positive with 834 gainers and 279 losers on the BSE.

According to the Angel Broking's report, "the trend deciding level for the day is 25,806 / 7,820 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 26,032 – 26,367 / 7,894 – 8,003 levels. However, if NIFTY trades below 25,806 / 7,820 levels for the first half-an-hour of trade then it may correct towards 25,471 – 25,245 / 7,712 – 7,638 levels."

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 675.32 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 681.93 crore yesterday, as per provisional data.

Further, investors continue to watch the performance of the monsoon rains which will have a bearing on food prices and rural income. India's weather office India Meteorological Department (IMD), said in a daily report issued yesterday, 1 September 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 12% below the Long Period Average (LPA) until 1 September 2015.

In the currency front, the rupee appreciated by 8 paise to 66.14 against the US dollar in early trade on increased selling of the American currency by exporters and banks.

GLOBAL MARKETS

Asian shares fell for a third straight day on Wednesday as weak manufacturing reports from China, the United States and Europe fueled worries about slowing global growth, while the safe-haven Japanese yen firmed as investors unwound carry trades.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.2% by late morning, taking its losses to nearly 4% so far this week as investors continued to dump emerging market assets.

But US S&P e-mini equity futures were up 0.7%, suggesting that some respite for markets later in the global day after Wall Street shares fell close to 3% overnight.

China's major stock indexes extended losses on Wednesday, despite pledges by a number of brokerages to increase their stock investments to support the market.

The CSI300 index fell 2.4% to 3,281.92 points while the Shanghai Composite Index lost 2.5% to 3,088.82 points. Both were down around 4% at one point.

SECTORS & STOCKS

BSE Realty index has surged by over 2% followed by counters like FMCG, Healthcare, IT, Auto, Banks, Capita Goods, Consumer Durables and Power, all gaining by 1% each.

The top gainers from the Sensex pack are Lupin, Axis Bank, Sun Pharma, ICICI Bank, ITC, Cipla, L&T and SBI.

Sun Pharma has gained over 1% on acquisition of GlaxoSmithKline's (GSK's) opiates business in Australia, strengthening its active pharmaceutical ingredients (API) and analgesic drug segments. The deal was announced in March and finalised yesterday.

State Bank of India (SBI) and ICICI Bank have been given the status of domestic systemically important banks (D-SIBs) by the Reserve Bank of India (RBI) on Monday.

Hero MotoCorp is trading down 2.6% at Rs 2,323 on the National Stock Exchange (NSE) after two-wheeler maker reported 13.97% year-on-year decline in sales at 480,537 units in August.

Shares of DLF were trading higher by 4% to Rs 110 on the BSE after real estate developer establish joint venture (JV) with GIC, Singapore’s sovereign wealth fund to develop two projects in Central Delhi.

With Reuters input

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