Markets pare most of the early gains; Nifty manages to hold 7800 mark

Indian equity benchmarks have pared most of their early gains and were trading at the lowest point of the day, although in green in the noon session up by around quarter of a percent, on account of buying in select blue-chip stocks ahead of IIP data to be released later in the day. Appreciation in the rupee too supported sentiment, the rupee appreciated 4 paise at 66.38 against the dollar in noon trade today on fresh selling of the US currency by exporters. On the global front, Asian markets were trading mostly in red after facing pressure from a rallying yuan and US data that offered no clarity on whether the Federal Reserve might raise interest rates next week. Back home, both sensex and Nifty are trading above crucial 25600 and 7800 levels respectively.  The market breadth on BSE was positive in the ratio of 1474: 759, while 100 scrips remained unchanged. Shares of aviation companies are in focus with Jet Airways and SpiceJet trading higher by up to 6% each on the Bombay Stock Exchange (BSE).

The BSE Sensex is currently trading at 25675.02, up by 52.85 points or 0.21% after trading in a range of 25660.07 and 25875.96. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index gained 0.80%.

The top gaining sectoral indices on the BSE were IT up by 1.02%, TECK up by 0.82%, Consumer Durables up by 0.81%, FMCG up by 0.75% and Realty up by 0.59%, while Capital Goods down by 0.36%, Metal down by 0.34% and Auto down by 0.11% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.96%, SBI up by 1.60%, Wipro up by 1.27%, ONGC up by 1.08% and HDFC up by 0.89%. On the flip side, Tata Steel down by 1.96%, GAIL India down by 1.93%, Tata Motors down by 1.76%, BHEL down by 1.73% and Reliance Industries down by 0.92% were the top losers.

After government’s assurance and lots of confirming local and international voices that India won’t be much affected by the Chinese turmoil, a committee comprising top regulators and secretaries of the finance ministry concluded that there was no immediate cause for worry for India from global economic developments and financial volatility.

The group, headed by Reserve Bank of India Governor Raghuram Rajan, which is one of the subcommittees of the Financial Stability and Development Council (FSDC), the apex inter-regulatory body headed by the finance minister, met in Mumbai and said that India’s strong fundamentals provided it enough protection from global developments. The sub-committee of FSDC was of the view that our macro-economic fundamentals are quite strong and there is no immediate cause of worry due to the international economic situation

The panel reviewed domestic and international developments and their impact on the financial stability of the country. The Sub-Committee also took note of the functioning of the various Technical Groups under its ambit and also discussed issues related to inter-regulatory co-ordination for reporting under the Foreign Account Tax Compliance Act (FATCA), the Central KYC Registry and International Financial Services Centre (IFSC).

The sub-committee of the FSDC, which besides Rajan, was attended by Finance Secretary Ratan P Watal, Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chib Duggal and four Deputy Governors of RBI, said that the government and regulators will take steps to strengthen India’s macro- economic stability as well as to capitalise on the current global uncertainties.

The CNX Nifty is currently trading at 7813.15, up by 25.05 points or 0.32% after trading in a range of 7800.50 and 7864.85. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.04%, Bank of Baroda up by 1.93%, Power Grid up by 1.86%, SBI up by 1.74% and BPCL up by 1.50%. On the flip side, GAIL India down by 2.12%, Tata Power down by 2.05%, BHEL down by 1.91%, Cairn India down by 1.82% and Tata Steel down by 1.79% were the top losers.

Asian markets were trading mostly in red; Straits Times decreased 40.15 points or 1.37% to 2,888.03, Shanghai Composite decreased 31.44 points or 0.98% to 3,166.46, KOSPI Index decreased 17.81 points or 0.91% to 1,944.30, Nikkei 225 decreased 17.58 points or 0.1% to 18,282.04 and FTSE Bursa Malaysia KLCI decreased 8.16 points or 0.51% to 1,605.86, while Jakarta Composite increased 32.58 points or 0.75% to 4,375.84, Taiwan Weighted increased 37.14 points or 0.45% to 8,305.82 and Hang Seng increased 68.31 points or 0.32% to 21,630.81.