Indian benchmarks climb 0.6%; underperform global peers

On a day when all the Asian markets are standing tall with significant gains, Indian stocks bourses are not mirroring similar strength and trading with moderate gains of only around half a percent. Despite repeated attempts to claw beyond the psychological 5,400 (Nifty) and 17,800 (Sensex) mark, the levels are proving as tough nuts to crack for the frontline indices. Nonetheless, the sentiments continue to remain positive thanks to the hefty buying interests evident largely across the board. The rate sensitive-Realty counter has jumped over two and half a percent in the session being the top sectoral gainer on BSE. The metal index too is shining brightly with close to two percent gains on the back of reports that a Supreme Court panel has recommended for cancellation of 123 iron ore leases, which would be up for grab for steel companies. Meanwhile, sugar stocks like Shree Renuka, Bajaj Hindusthan along with rice stocks like Kohinoor Foods rallied in the session after EGoM approved export of one million tonnes of sugar. It also okayed further export of non-basmati rice up to 4 million tonnes and reduction of MEP (minimum export price) of basmati rice to $700 a tonne from $900 a tonne. Besides, the telecom major Bharti Airtel plummeted over five percent in the session after announcing weaker than expected numbers in third quarter. On the global front, Asian markets exhibited sanguine trends while the European stock futures too indicated a positive opening for the markets there on hopes that Greece would take the tough choice of accepting painful reforms in return for a new international bailout to avert a chaotic default.

Moreover, the broader markets traded on strong note with over a percent gains and comprehensively outperformed their larger peers. The bourses rose on good volumes of over Rs 0.50 lakh crore while market breadth on BSE was in favor of advances in the ratio of 1700:922 while 87 scrips remained unchanged.

The BSE Sensex is currently trading at 17,724.62 up by 102.17 points or 0.58% after trading as high as 17,784.51 and as low as 17,631.69. There were 25 stocks advancing against 5 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index soared 1.17% and Small cap climbed 1.14%.

On the BSE sectoral space, Realty up 2.63%, Metal up 1.89%, IT up 1.61%, Consumer Durables up 1.53% and Power up 1.48% were the major gainers while FMCG down 0.20% was the only loser in the space.

Jindal Steel up 3.11%, Hindalco up 2.87%, DLF up 2.43%, GAIL up 2.16% and Wipro up 2.14% were the major gainers on the Sensex, while Bharti Airtel down 5.77%, ICICI Bank down 1.43%, ONGC down 1.15%, ITC down 1.14% and Cipla down 0.33% were the only losers in the index.

Meanwhile, with a view to give manufacturing sector an impetus and increase its share in the country’s gross domestic product (GDP), the government is planning to set up an additional five National Manufacturing Investment Zones (NIMZs) in the country apart from the already approved seven, which are ready for implementation under the National Manufacturing Policy (NMP).

Talleen Kumar, Joint Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, has stated that at present manufacturing sector contributes only 16% to India’s GDP. The government wants the share to increase to 25% by 2022. It also expects manufacturing to provide additional 100 million jobs to make growth inclusive. By adding further, he said, with this vision in mind, it is proposed that an additional 5 NIMZs be set up along with the Delhi-Mumbai Industrial Corridor (DMIC), which is already under implementation. The 5 news NIMZs are proposed to be set up in different parts of the country.

The NIMZs will be spread over 5,000 hectares each with world class infrastructure and clean technologies and skill development institutes. In dynamic global environment, India suffers from power and transport infrastructure gaps, making its products less competitive and these zones will help overcome these shortcomings. It is proposed that these zones will be managed by special purpose vehicles (SPVs), which will have representation from the Centre as well as the states apart from private developers, and will be headed by a senior state official.

The SPVs will undertake massive planning and strategies, select the developers, obtain environmental clearances, levy charges for infrastructure, promote investment and implement the resettlement and rehabilitation package. Further, it will be the responsibility of the respective States to provide land, water, power and infrastructure while the Centre will bear the cost of master planning, improved external infrastructure and linkages and also provide skill development facilities.

On the development in the Delhi-Mumbai Industrial Corridor project, Kumar said, ‘we are in talks with the Gujarat and Maharashtra to set up SPVs for constructing industrial townships. The first phase of cities will come by 2019.’

The S&P CNX Nifty is currently trading at 5,366.75, higher by 31.60 points or 0.59% after trading as high as 5,388.70 and as low as 5,335.75. There were 41 stocks advancing against 9 declines on the index.

The top gainers on the Nifty were R Infra up 4.33%, Sesa Goa up 2.96%, Jindal Steel up 2.87%, R Power up 2.69% and Hindalco up 2.54%.

Bharti Airtel down 5.81%, ITC down 1.39%, ICICI Bank down 1.38%, ONGC down 0.96% and Dr Reddy’s down 0.89% were the major losers on the index.

In the Asian space, Shanghai Composite surged 2.28%, Hang Seng soared 1.22%, Jakarta Composite climbed 0.54%, Nikkei 225 jumped 1.10%, Straits Times ascended 0.81%, Seoul Composite garnered 1.12% and Taiwan Weighted spurted 2.11%.