Benchmarks trim gains; trade continues in green

Indian equity markets trimmed minor gains and continued trading in green in the late afternoon session on account of buying in frontline blue chip counters. The sentiments got support after Commerce and Industry Minister Nirmala Sitharaman stated that inflows of foreign direct investment into India rose by about 25% to $17.35 billion in the April-October period of the current fiscal. Traders were seen piling positions in Metal, Realty and Auto stocks. In scrip specific development, Spice Mobility was locked at upper circuit limit over its delisting plans as the street anticipates of higher buyback price from the company. Aban Offshore was trading firm after domestic credit rating agency CARE upgraded its credit rating assigned to the company.

On the global front, the Asian markets were trading mostly in green while the European markets were trading mostly on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,250 and 27,400 levels respectively. The market breadth on BSE was positive in the ratio of 1689:1044 while 120 scrips remained unchanged.

The BSE Sensex is currently trading at 27421.66, up by 179.88 points or 0.66% after trading in a range of 27266.49 and 27507.25. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.92%, while Small cap index up by 0.75%. The gaining sectoral indices on the BSE were Metal up by 2.87%, Realty up by 1.40%, Auto up by 1.32%, Power up by 1.13%, Oil & Gas up by 1.07%.

The top gainers on the Sensex were Sesa Sterlite up by 4.34%, Hindalco up by 3.48%, Tata Steel up by 2.52%, Coal India up by 2.37% and Tata Motors up by 2.23%. On the flip side, Axis Bank down by 0.21%, Mahindra & Mahindra down by 0.06% and SBI down by 0.05% were the top losers.

Meanwhile, with an aim to fast track the reforms process, the government, after approving key reforms for coal and insurance sectors recently through ordinance route, may soon take the same route to pave the way for auction of iron ore and other minerals as the proposed amendments to the MMRDA Act have been pending since long. 

As mining sector is one of the chosen segments for the ‘Make in India’ programme,  the government has planned to circulate the new bill seeking promulgation of ordinance for bringing changes in Mines and Minerals (Development and Regulation) Act, 1957. A large number of mines have remained shut and the Mines Ministry is of the view that due to absence of a set of guidelines, the government is unable to take decisions. Meanwhile, the ordinance will pave the way for decision-making. 

Mines Ministry has prepared a draft amendment Bill and is now considering moving a proposal to the Cabinet to adopt the ordinance route as the Winter Session of Parliament is over. The Bill sought to introduce competitive bidding through the auction route for iron ore and other minerals and also focuses on attracting private investment and latest technology and eliminating delay in administration. Meanwhile, the provisions for the auction route for the allocation of mines and creation of District Mineral Fund for the welfare of the project-affected people would remain. The Ordinance would also provide for greater decentralization of power to states for allocation of resources. 

The CNX Nifty is currently trading at 8254.75, up by 54.05 points or 0.66% after trading in a range of 8214.70 and 8279.15. There were 43 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 4.27%, Hindalco up by 3.55%, Jindal Steel & Power up by 2.95%, Tata Steel up by 2.56% and DLF up by 2.46%. On the flip side, PNB down by 0.92%, Cairn India down by 0.48%, Kotak Mahindra Bank down by 0.24%, Mahindra & Mahindra down by 0.16% and Axis Bank down by 0.03% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 3.07 points or 0.17% to 1,767.51, Jakarta Composite increased 9.44 points or 0.18% to 5,176.43, Shanghai Composite increased 10.41 points or 0.33% to 3,168.02, Straits Times increased 11.56 points or 0.34% to 3,365.24, Taiwan Weighted increased 67.78 points or 0.74% to 9,286.28 and Hang Seng increased 423.84 points or 1.82% to 23,773.18.

On the other hand, Nikkei 225 decreased 89.12 points or 0.5% to 17,729.84 and KOSPI Index decreased 20.3 points or 1.04% to 1,927.86.

The European markets were trading mostly in green; France’s CAC increased 9.43 points or 0.22% to 4,305.28 and UK’s FTSE 100 increased 14.92 points or 0.23% to 6,624.85 while, Germany’s DAX decreased 26.16 points or 0.26% to 9,895.95.