Benchmarks turn choppy in noon deals

Indian equity benchmarks after a firm opening turned choppy in noon deals as investors remained concerned 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. Sentiments also remained dampened on report that foreign portfolio investors (FPIs) remained net sellers in domestic equities worth Rs 675.32 crore on Tuesday, as per provisional data released by the stock exchanges. However, markets managed to keep their head above water as some support came after the government accepted the recommendation of the Shah Panel report stating that Minimum Alternate Tax (MAT) should not be imposed on overseas portfolio investors retrospectively.

Firm opening in European counters supported the sentiments, CAC, DAX and FTSE all were trading in green with a gain of around half a percent in early deals. However, Asian stocks weakened for the third straight day on Wednesday amid worries over weak economic data from China while the prospects of a rate hike by the US Federal Reserve also weighed on investor sentiment. Back home, on the sectoral front, software, technology and fast moving consumer goods witnessed the maximum gain in trade, while banking, power and capital goods remained the top losers on the BSE sectoral space. The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1,265 shares on the gaining side against 1,071 shares on the losing side while 91 shares remain unchanged.

The BSE Sensex is currently trading at 25714.50, up by 18.06 points or 0.07% after trading in a range of 25610.57 and 25939.37. There were 11 stocks advancing against 19 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 up by 0.65%.

The top gaining sectoral indices on the BSE were IT up by 2.03%, TECK up by 1.79%, FMCG up by 1.33%, Realty up by 1.12% and Metal up by 0.75%, while Bankex down by 1.13%, Power down by 0.96%, Capital Goods down by 0.74%, Consumer Durables down by 0.73% and PSU down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.08%, TCS up by 2.80%, Lupin up by 2.10%, Infosys up by 1.85% and ITC up by 1.52%. On the flip side, BHEL down by 2.83%, Mahindra & Mahindra down by 2.35%, SBI down by 2.22%, NTPC down by 2.08% and Axis Bank down by 1.90% were the top losers.

Meanwhile, with an aim to promote competitiveness among states to attract investments and to bring India into the top 50 in terms of ease of doing business in the next three years, the Department of Industrial Policy and Promotion (DIPP) with the help of World Bank this week is expected to release the report of the ranking of states on ease of doing business. Improved ranking will help in attracting both domestic and foreign investments.

Under this, DIPP had circulated a set of 285 questions to all states which have already been responded by the State Governments. Further, the ranking will be based on 98 parameters with the exception of two parameters (getting credit and protecting minority investors) as India does not feature in top 100 in the remaining parameters. Although central government departments are taking steps to improve India's ranking in ease of doing, about 70% work happens in the states. So, DIPP has to take measures in this direction.

Presently, India is ranked 142nd among 189 nations in the World Bank's 'Ease of Doing Business 2015'. FDI in the country grew by 31% to $9.50 billion, during April-June period of the current fiscal compared to $7.23 billion in the same period last fiscal. 

The CNX Nifty is currently trading at 7797.00, up by 11.15 points or 0.14% after trading in a range of 7760.75 and 7862.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.95%, Tata Steel up by 3.47%, TCS up by 2.97%, Ambuja Cement up by 2.22% and HCL Tech up by 2.17%. On the flip side, BHEL down by 2.85%, NTPC down by 2.37%, PNB down by 2.34%, SBI down by 2.24% and Mahindra & Mahindra down by 2.23% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 207.65 points or 0.98% to 20,977.78, Nikkei 225 shed 70.29 points or 0.39% to 18,095.40, Jakarta Composite slipped 14.01 points or 0.32% to 4,398.45, FTSE Bursa Malaysia KLCI declined 13.89 points or 0.86% to 1,595.32 and Shanghai Composite was down by 4.92 points or 0.16% to 3,161.70.

On the flip side, KOSPI Index increased 0.99 points or 0.05% to 1,915.22, Straits Times rose 4.91 points or 0.17% to 2,887.68 and Taiwan Weighted was up 17.73 points or 0.22% to 8,035.29.

European Markets were trading in green; Germany’s DAX gained 0.45%, France’s CAC surged 0.43% and UK’s FTSE was up by 0.51%.