Markets pare gains to trade flat in early noon session

Indian equity benchmarks have pared most of their early gains to trade flat in early noon trades. Concern in the market grew after India's weather office India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon season was 12% below the Long Period Average (LPA) until 1 September 2015. Weakness in Indian rupee too weighed down the sentiment. The rupee depreciated by 8 paise to 66.30 against the US dollar in late morning trade as compare to previous close of 66.22.

On the global front, Asian markets were trading mixed, the United States and Europe too fueled worries about slowing global growth. Back home, in scrip specific development, Hero MotoCorp is trading down 1.17% after two-wheeler maker reported 13.97% year-on-year decline in sales at 480,537 units in August. Sun Pharma has lost over 1% despite acquiring GlaxoSmithKline's (GSK's) opiates business in Australia.

The BSE Sensex is currently trading at 25698.59, up by 2.15 points or 0.01% after trading in a range of 25610.57 and 25939.37. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.17%, while Small cap index gained 0.54%.

The top gaining sectoral indices on the BSE were IT up by 1.88%, TECK up by 1.61%, FMCG up by 1.32%, Realty up by 1.30%, while Bankex down by 1.19%, Power down by 1.05%, PSU down by 0.69%, Capital Goods down by 0.65%, Consumer Durables down by 0.51% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.73%, Lupin up by 2.13%, Infosys up by 1.54%, ITC up by 1.54% and Reliance Industries up by 1.30%. On the flip side, BHEL down by 2.83%, NTPC down by 2.50%, SBI down by 2.32%, Axis Bank down by 2.22% and Tata Motors down by 1.77% were the top losers.

Meanwhile, with a view to reduce cash transactions in the economy and achieve financial inclusion, India will be joining the UN-based 'Better than Cash Alliance’. The announcement was made on the first anniversary of Prime Minister Narendra Modi's flagship financial inclusion programme Pradhan Mantri Jan-Dhan Yojana (PMJDY). Partnership with this UN alliance is the extension of Indian government’s commitment to reduce cash transactions in its economy to achieve financial inclusion.

Under Better than Cash Alliance, governments, companies, and international organizations are involved which promote transition from cash to digital payments to reduce poverty and drive inclusive growth. Digital financial services lower the cost of providing financial services and make it more convenient for poor people to access their accounts.

The announcement came ahead of next month’s United Nations Special Summit in New York, when Prime Minister Narendra Modi and other world leaders will launch the adopted Sustainable Development Goals (SDGs). Dr.Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance has said that by making the digitization of payments to achieve financial inclusion a top priority, the Indian government is showing its commitment to improving the lives of its people and driving inclusive growth.

The CNX Nifty is currently trading at 7791.75, up by 5.90 points or 0.08% after trading in a range of 7760.75 and 7862.55. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.82%, TCS up by 2.82%, Ambuja Cement up by 2.58%, Lupin up by 2.26% and ACC up by 1.78%. On the flip side, BHEL down by 2.89%, NTPC down by 2.58%, SBI down by 2.32%, Axis Bank down by 2.12% and Tata Motors down by 1.91% were the top losers.

Asian markets were trading mixed, KOSPI Index increased 0.99 points or 0.05% to 1,915.22, Jakarta Composite increased 1.78 points or 0.04% to 4,414.24, Straits Times increased 13.37 points or 0.46% to 2,896.14 and Taiwan Weighted increased 17.73 points or 0.22% to 8,035.29. On the flip side, Hang Seng decreased 123.98 points or 0.59% to 21,061.45, Nikkei 225 decreased 70.29 points or 0.39% to 18,095.40, Shanghai Composite decreased 31.78 points or 1% to 3,134.84 and FTSE Bursa Malaysia KLCI decreased 12.12 points or 0.75% to 1,597.09.