Markets trade flat in afternoon session

Indian equity benchmarks recovered initial losses and were trading near the neutral line in afternoon session supported by fresh buying witnessed in FMCG and metal stocks. Sentiments got some support as Industry body Assocham stated that quick implementation of the major programmes unveiled will lift the country's GDP growth by at least 1-1.5 percent. Further, Finance Minister's statement that India could exceed the growth rates of 8-9% with a stable and decisive government in place also provided support to domestic markets. Most of the sectoral indices were trading in green with FMCG as top gaining index up by around 1.04%. Shares of pharmaceutical companies continued their upward march with most of the frontline stocks were trading at their lifetime highs after reporting healthy results for the June quarter. Metal and mining stocks recovered from intra-day low levels, however, power stocks were under pressure amid Supreme Court's order stating captive coal mine allocations made between 1993 and 2010 as illegal and arbitrary. In stock specific development, share of Havells India has soared around 11% to Rs 276 due to ex-stock split today. It subdivided the face value of equity shares to Re 1 from Rs 5.

On global front, most of the Asian markets were trading in red with Nikkei 225 down 0.55% and Hang Seng down 0.15%. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,950 and 26,500 levels respectively. The market breadth on BSE was positive, out of 2,577 stocks traded, 1,082 stocks advanced, while 1,406 stocks declined on the BSE.

The BSE Sensex is currently trading at 26443.76, up by 6.74 points or 0.03% after trading in a range of 26331.83 and 26481.97. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.18%, while Small cap index down by 0.41%.

The gaining sectoral indices on the BSE were FMCG up by 1.04%, Metal up by 0.96%, TECK up by 0.49%, IT up by 0.48% and Realty up by 0.46%. On the flip side, Power down by 1.24%, PSU down by 1.15%, Capital Goods down by 0.93%, Oil & Gas down by 0.91% and INFRA down by 0.53% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 3.37%, Tata Steel up by 2.77%, Cipla up by 1.92%, Sun Pharma Inds. up by 1.78% and GAIL India up by 1.66%. On the flip side, Tata Power down by 2.88%, ONGC down by 2.34%, BHEL down by 1.53%, Larsen & Toubro down by 1.52% and NTPC down by 1.34% were the top losers.

Meanwhile, buoyant over the recently announced measures by Government to boost economic growth, Industry body Assocham has stated that quick implementation of the major programmes unveiled will lift the country's GDP growth by at least 1-1.5 percent. Assocham also clarified that it will stand and work closely with the government to achieve the set targets but at the same time, as a watchdog, it will keep pointing slippages in the implementation of various schemes.

Suggesting the government to focus on key projects, Industry body Assocham recommended executing 159 public-private-partnership infrastructure projects, which have already been approved under the Viability Gap Funding involving a total investment of Rs 80,894 crore. A high level monitoring on a real time basis is required for these PPP projects out of which forty five projects have achieved financial closure as well. It also suggested that Railways must spend its Plan Outlay under of Rs 47,650 crore without allowing any slippages. The policy liberalisation of domestic investments and FDI in rail infrastructure must be implemented straight-away. Assocham also noted that huge cash piles of public sector companies must be used in capacity expansion. The investment promise of Rs 2.48 lakh crore should be fulfilled by March 31, 2015.

India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14. The factors like slow reforms, high interest rates and inflation and delays in implementation of infrastructure projects in the country can be attributed for economic downturn.

The CNX Nifty is currently trading at 7906.05, down by 0.25 points or 0.00% after trading in a range of 7871.65 and 7915.45. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.28%, Tata Steel up by 2.82%, Hindustan Unilever up by 1.81%, Cipla up by 1.78% and Sun Pharma up by 1.77%. On the flip side, Jindal Steel & Power down by 3.79%, Tata Power down by 3.04%, ONGC down by 2.45%, ACC down by 1.88% and BHEL down by 1.79% were the top losers.

Most of the Asian equity indices were trading in red; Taiwan Weighted up by 3.34 points or 0.04% to 9,393.96 and KOSPI Index up by 7.16 points or 0.35% to 2,068.05. While, Nikkei 225 down 85.62 points or 0.55% to 15,527.63, Hang Seng down 38.54 points or 0.15% to 25,128.37, Jakarta Composite down 21.52 points or 0.41% to 5,163.44, Shanghai Composite down 15.74 points or 0.71% to 2,213.53 and Straits Times down 1.56 points or 0.05% to 3,328.72