Markets recover following Asian markets; Nifty in tight range

Indian equity markets recovered some lost ground and currently trading flat in the negative territory following Asian markets, which took u-turn with markets like Straits Times, Seoul Composite and Shanghai Composite moved into positive. Meanwhile, Nifty was moving in a tight range of 5,345-5,365 level while Sensex trading near high point of the day. Investors were waiting for the outcome of an emergency meet of Euro zone finance ministers over Greek debt deal. On sectoral front oil, information technology and metal stocks were among the prominent losers while realty and auto stocks were faring well. On the global front, Asian bourses started regaining the strength. Back home, the market breadth favoring the positive trend; there were 1,532 shares on the gaining side against 901 shares on the losing side while 98 shares remained unchanged.

The BSE Sensex is currently trading at 17,677.62, down by 29.70 points or 0.17%. The index has touched a high and a low of 17,691.36 and 17,609.43 respectively.  There were 13 stocks advancing against 17 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.77% and 0.93% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.98%, Auto up by 1.08%, Power up by 0.92%, CD up by 0.50% and Bankex up by 0.48%. While, Oil & Gas down by 0.53%, IT down by 0.41%, TECk down by 0.34%, FMCG down by 0.22% and Metal down by 0.18% were the top losers on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.91%, Hero MotoCorp up by 1.86%, NTPC up by 1.81%, Tata Motors down by 1.79% and HDFC Bank up by 1.58%.

On the flip side, Hindalco Industries down by 5.28%, ONGC down by 2.37%, L&T down by 1.18%, TCS down by 0.94% and ITC down by 0.93% were the top losers on the Sensex.

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 5,361.65, lower by 6.50 points or 0.12%. The index has touched a high and a low of 5,365.70 and 5,338.90 respectively. There were 28 stocks advancing against 22 declines on the index.

The top gainers of the Nifty were Cain up by 2.41%, JP Associates up by 2.27%, RPower up by 2.26%, Siemens up by 2.03% and Bajaj Auto up by 1.79%.

On the flip side, Hindalco down by 5.47%, ONGC down by 2.49%, L&T down by 1.13%, TCS down by 1.00% and Bharti Airtel down by 0.97% were the major losers on the index.

Asian equity indices were trading mixed; Hang Seng was down by 0.08%, Jakarta Composite was down by 0.84%and Nikkei 225 down by 0.17%. On the flip side, Straits Times up by 0.29%, Seoul Composite up by 0.18%, Shanghai Composite gained 0.48% and Taiwan Weighted rose by 0.52%.