Markets continue to trade flat in early noon session

Indian equity markets continue to show flat trade near the lowest point of the day, albeit in green in early noon session. Some concern grew in the markets ahead of the announcement of consumer price index (CPI) data for the month of September 2015 and the industrial production data for August 2015 after market hours today. The broader markets were however, outperforming the benchmark indices- BSE Midcap and Smallcap indices were up by around half a percent. Traders were seen piling up position in Metal, Power, Realty, Auto and Capital Good stocks, while selling was witnessed in IT, TECK, and FMCG sector stocks.

On the global front, Asian markets were trading mostly in green, as investors hunted for bargains in industrials and basic materials, fuelled by a rebound in commodities, while the dollar struggled as hopes of a Fed rate rise this year faded. Back home, both Sensex and Nifty are trading above their crucial 27,000 and 8,150 levels respectively. In scrip specific development, share of Yes Bank was trading up by 0.76% on receiving an approval from the Reserve Bank of India (RBI) to sponsor a Mutual Fund and to setup an Asset Management Company (AMC) and a Trustee Company. The AMC and the Trust companies shall be set up as wholly owned subsidiaries of the bank. The bank will now apply to SEBI to seek necessary approvals.

The BSE Sensex is currently trading at 27089.42, up by 9.91 points or 0.04% after trading in a range of 27024.91 and 27305.04. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.52%, while Small cap index gained 0.43%.

The top gaining sectoral indices on the BSE were Metal up by 1.73%, Power up by 1.32%, Realty up by 0.78%, Auto up by 0.78% and Capital Goods up by 0.76%,  while IT down by 1.25%, TECK down by 0.99% and  FMCG down by 0.46% were the losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 6.81%, Hindalco up by 4.96%, Tata Motors up by 2.28%, Tata Steel up by 2.09% and ICICI Bank up by 1.35%. On the flip side, Infosys down by 2.55%, HDFC down by 1.27%, Cipla down by 1.25%, Lupin down by 0.71% and Hindustan Unilever down by 0.67% were the top losers.

Meanwhile, after projecting Indian growth in current year to 7.3 percent, slightly lower from 7.5 percent forecasted in the 2015 April  at WEO, the International Monetary Fund (IMF) has recommended the country to launch next phase of economic reforms and improve its business climate for achieving faster and more inclusive growth.

IMF has said that in India, while several policy actions have been taken recently, further steps in relaxing longstanding supply bottlenecks, especially in the energy, mining, and power sectors, as well as labour and product market reforms, and improving the business climate are crucial to achieving faster and more inclusive growth. It said that the growth recovery has continued, supported by a pickup in domestic demand, on the back of strengthening industrial production and fixed investment.

It further added that the ongoing economic recovery is underpinned by robust domestic demand and with the revival of consumer and business sentiment; the incipient recovery of investment is expected to contribute more to growth going forward. Though, it also said that although lower oil prices are supportive of domestic demand, weakened exports as well as headwinds from weaknesses in India’s corporate and bank balance sheets will weigh on the economy.

Earlier, in its Asia and Pacific Regional Economic Outlook Update released in Peru, Lima on the sidelines of the annual fall meeting of the IMF and World Bank, the IMF had projected a slight drop in India's growth rate from 7.5 percent to 7.3 percent in 2015 and maintained the same growth rate of 7.5 percent for 2016 as it projected in this previous report in April.

The CNX Nifty is currently trading at 8191.55, up by 1.85 points or 0.02% after trading in a range of 8171.95 and 8244.50. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 7.00% and Hindalco up by 4.65%, Tata Steel up by 2.29%, Tata Motors up by 1.91% and Cairn India up by 1.75%. On the flip side, Bank of Baroda down by 4.26%, Infosys down by 2.61%, Cipla down by 1.46%, HDFC down by 1.32% and Lupin down by 0.76% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 0.33 points or 0.02% to 2,019.86, Jakarta Composite increased 37.48 points or 0.82% to 4,626.82, Shanghai Composite increased 114.86 points or 3.61% to 3,298.02, Taiwan Weighted increased 115.83 points or 1.37% to 8,561.79, Hang Seng increased 231.95 points or 1.03% to 22,690.75 and Nikkei 225 increased 297.5 points or 1.64% to 18,438.67, while FTSE Bursa Malaysia KLCI decreased 1.72 points or 0.1% to 1,704.82.