Benchmarks turn green in noon deals; Sensex regains 25,800 mark

Indian equity benchmarks, paring all of their initial losses, staged splendid recovery in noon deals and entered into green terrain with frontline gauges recapturing their crucial 25,800 (Sensex) and 7,800 (Nifty) levels as investors opted to buy beaten down but fundamentally strong stocks. Traders were getting some support with Finance Minister’s statement that the economy is in a revival phase and hint that it will clock a growth rate in excess of 8 per cent in 2015-16, after the total indirect tax collections during the first four months of the fiscal rose by 37 per cent. Some encouragement also came with the SBI Composite Index’s report that has stated that Country’s manufacturing sector growth improved both in terms of month-on-month as well as yearly basis in August. Recovery in Indian rupee against dollar too aided the sentiments. The partially convertible rupee was trading at 66.53 per dollar in noon deals as against the Monday’s close of 66.64 on the Interbank Foreign Exchange.

On the global front, firm opening in European counters too supported the sentiments with CAC, DAX and FTSE all trading in green with a gain of over one and a half percent in early deals. Recovery in most of the Asian markets too soothed sentiments. Though, Chinese market continued to witness selling pressure as investors shunned riskier assets on concerns over sluggish economic growth. Back home, on the sectoral front, realty, oil and gas and metal witnessed the maximum gain in trade, while capital goods, power and consumer durables remained the top losers on the BSE sectoral space. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 496 shares on the gaining side against 1,990 shares on the losing side while 70 shares remain unchanged.

The BSE Sensex is currently trading at 25813.87, up by 72.31 points or 0.28% after trading in a range of 25298.42 and 26124.83. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was up by 0.64%, while Small cap index down by 1.00%.

The top gaining sectoral indices on the BSE were Realty up by 2.26%, Oil & Gas up by 1.66%, Metal up by 1.61%, Bankex up by 1.55% and PSU up by 0.82%, while Consumer Durables down by 1.60%, Capital Goods down by 1.29%, IT down by 1.01%, FMCG down by 0.88% and Power down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.00%, Vedanta up by 3.24%, Hindalco up by 3.04%, Coal India up by 3.03% and ICICI Bank up by 3.02%. On the flip side, Maruti Suzuki down by 2.37%, BHEL down by 2.13%, HDFC down by 1.78%, Hero MotoCorp down by 1.69% and ITC down by 1.65% were the top losers.

Meanwhile, Reserve Bank of India while releasing a working group report on compilation of flow of funds (FOF) accounts to assess nature and pace of financial development recommended that the FOF accounts of money market funds (MMFs) and non-MMFs to be compiled and published separately instead of the mutual funds sector which was part of the other financial institutions in the extant FOF accounts. Besides it also recommended that the RBI may examine the possibility of compiling and publishing the FOF accounts on quarterly basis beginning with the financial sector. The data flow into the FOF database will be automated to the possible extent.

The working group report highlighted  that compilation of FOF accounts for Indian economy may be restructured with adoption of five mutually exclusive institutional sectors  including that of non-financial corporations, financial corporations, general government, households and non-profit institutions serving households (NPISHs) and the Rest of the World. It stated that the non-financial corporations' sector would include Non-Government Non-Financial Public and Private Limited Companies, Government Non-Financial Departmental/Non-Departmental Commercial Undertakings, Port Trusts (public and private) and Cooperative Non-Credit Societies.

Further RBI said that the FOF accounts of the provident/pension funds may be compiled separately and comprise non-government provident/ pension funds. However, the central and state government Employees' Provident Fund would be included under the central and state governments sectors, respectively. Moreover, FOF accounts of RBI and insurance companies would continue to be compiled as done at present.

Apart from this, RBI has also invited comments and feedback on recommendations of the report by September 15, 2015 by email or by post.

The CNX Nifty is currently trading at 7828.85, up by 19.85 points or 0.25% after trading in a range of 7667.25 and 7925.40. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 5.13%, NTPC up by 4.99%, Idea Cellular up by 3.27%, Coal India up by 3.15% and Tata Motors up by 3.13%. On the flip side, Tata Power down by 6.75%, Ambuja Cement down by 3.16%, Power Grid down by 2.75%, HDFC down by 1.86% and NMDC down by 1.61% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 10.39 points or 0.68% to 1,542.53, KOSPI Index gained 16.82 points or 0.92% to 1,846.63, Straits Times rose 19.44 points or 0.68% to 2,862.83, Jakarta Composite surged 57.19 points or 1.37% to 4,220.92 and Taiwan Weighted was up by 265.3 points or 3.58% to 7,675.64. 

On the flip side, Nikkei 225 tumbled 733.98 points or 3.96% to 17,806.70, Hang Seng decreased 241.35 points or 1.14% to 21,010.22 and Shanghai Composite was down by 240.99 points or 7.51% to 2,968.92.

European Markets were trading in green; Germany’s DAX gained 1.59%, France’s CAC surged 1.85% and UK’s FTSE was up by 1.53%.