Benchmarks continue firm trade; FMCG, Metal lead

Indian equity markets added gains to continue firm trade in the late afternoon session on account of buying in front line blue chip counters. The sentiments were on optimistic note after Finance Minister Arun Jaitley stated that, notwithstanding adverse global circumstances and headwinds, Indian economy is still managing to keep ahead. The minister added that the government has its agenda full in terms of reforms, investment into key areas and has opened up more sectors for investment. Traders were seen piling position in FMCG, Metal and Auto stocks, while selling was witnessed in Consumer Durables, IT and Oil & Gas sector stocks. Hectic buying activity was witnessed in sugar stocks on media reports that the government is planning to offer a subsidy of Rs 1,200 crore to farmers. In the scrip specific development, Pipavav Defence and Offshore Engineering was trading firm after Reliance Infrastructure stated that it will make an open offer to acquire an additional 26 percent stake in the company.

On the global front, the Asian markets were trading mostly in green, while the European markets were trading mostly on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,800 and 25,800 levels respectively. The market breadth on BSE was positive in the ratio of 1336:1165 while 168 scrips remained unchanged.

The BSE Sensex is currently trading at 25861.78, up by 101.68 points or 0.39% after trading in a range of 25732.79 and 25917.01. There were 18 stocks advancing against 11 stocks declining on the index while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.24%, while Small cap index up by 0.52%.

The gaining sectoral indices on the BSE were FMCG up by 1.90%, Metal up by 1.08%, Auto up by 0.56%, Power up by 0.19%, Realty up by 0.16% while, Consumer Durables down by 0.36%, IT down by 0.30%, Oil & Gas down by 0.27%, Bankex down by 0.24%, TECK down by 0.19% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 3.67%, ITC up by 2.65%, Vedanta up by 2.51%, Tata Motors up by 2.10% and GAIL India up by 1.88%.

On the flip side, Dr. Reddy’s Lab down by 1.76%, Infosys down by 1.52%, Axis Bank down by 1.06%, Bajaj Auto down by 0.65% and Bharti Airtel down by 0.60% were the top losers.

Meanwhile, the government has tweaked the provisions of the procurement policy, according to which now the Central government ministries and public sector undertakings (PSUs) would be required to procure “at least” 20 per cent of their annual value of goods or services from micro and small enterprises (MSEs). The change has been made in the provision 6 of the Policy wherein the phrase 'up to' has been substituted with 'at least'. With the new norms SMEs are now eligible to supply “at least” 20 per cent of the requirement at the lowest quoted price in a bidding.

According to the earlier provision 6 of the Policy it is mentioned that in tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than a Micro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply “up to” 20 per cent of total tender value.

The revised Provision 6 of the Policy should be read as in tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than a Micro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply “at least” 20 per cent of total tendered value.

Government of India had introduced a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which is notified under MSMED Act 2006.  Under the Policy every Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum of 20 per cent of their total annual value of goods or services from Micro and Small Enterprises.

The CNX Nifty is currently trading at 7831.70, up by 25.10 points or 0.32% after trading in a range of 7793.00 and 7850.15. There were 29 stocks advancing against 20 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were Hindalco up by 3.61%, ITC up by 2.75%, Vedanta up by 2.51%, Ambuja Cement up by 2.45% and HCL Tech up by 2.18%.

On the flip side, BPCL down by 2.80%, Grasim Industries down by 2.57%, Dr. Reddy’s Lab down by 1.97%, Infosys down by 1.75% and Bank of Baroda down by 1.73% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 8.94 points or 0.54% to 1,664.94, KOSPI Index increased 20.56 points or 1.06% to 1,963.58, Jakarta Composite increased 73.07 points or 1.64% to 4,515.25, Taiwan Weighted increased 124.02 points or 1.5% to 8,419.42, Nikkei 225 increased 236.94 points or 1.22% to 19,630.63 and Hang Seng increased 253.43 points or 1.15% to 22,264.25.

On the other hand, Shanghai Composite decreased 2.16 points or 0.06% to 3,604.80.

The European markets were trading in green; UK’s FTSE 100 increased 81.35 points or 1.32% to 6,227.73, France’s CAC increased 58.49 points or 1.22% to 4,862.80 and Germany’s DAX increased 122.03 points or 1.14% to 10,835.26.