Markets manage to keep their head above water in afternoon session

Indian equity benchmarks managed to keep their head above water in afternoon session as traders drew some sense of relief with Fitch stating that India will continue to post good growth despite subdued prospect for the Asia Pacific region amid an expected rise in US rates, dollar strength and lower commodity prices. On the global front, Asian markets were trading mostly in red at this point of time led by over one and a half percent fall in Japanese benchmark as the yen strengthened against the dollar. Back home, selling in Auto space too dampened the sentiments on concerns that the proposed ban on diesel vehicles by the NGT in Delhi could have a domino effect on other states. Banking and financial shares are under pressure in anticipation of the rate hike by the US. The broader indices too were trading slightly in the green, while the market breadth on the BSE was positive; there were 1,326 shares on the gaining side against 998 shares on the losing side while 155 shares remain unchanged.

The BSE Sensex is currently trading at 25172.83, up by 22.48 points or 0.09% after trading in a range of 25075.54 and 25190.12. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.03%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were Realty up by 0.64%, Consumer Durables up by 0.61%, FMCG up by 0.52%, Oil & Gas up by 0.34% and Healthcareup by 0.32%, while Bankex down by 0.51%, Metal down by 0.43%, Power down by 0.36%, TECK down by 0.18% and Capital Goods down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.31%, Hindustan Unilever up by 1.17%, Sun Pharma up by 1.11%, Reliance Industries up by 1.02% and Mahindra & Mahindra up by 0.85%. On the flip side, ICICI Bank down by 1.61%, Tata Steel down by 1.41%, Vedanta down by 1.24%, NTPC down by 1.24% and BHEL down by 1.23% were the top losers.

Meanwhile, for the financial year 2016-17, the Department of Disinvestment is keen on having a less ambitious fund raising target of about Rs 35,000- 40,000 crore, through stake sales in public sector units. The issue will be discussed with the Departments of Expenditure and Economic Affairs, which will ultimately finalize Budget targets for 2016-17. However, the Department of Disinvestment is more optimistic about PSU stake sales in 2016-17, with a policy on strategic sales which likely to be in place soon. 

For the financial year 2015-16, Union budget had set a target of Rs 69, 500 crore from PSU stake sales. Out of which Rs 41,000 crore is to be raised from minority stake sales and Rs 28,500 crore through strategic sales. So far the department has been able to raise just Rs 12,701 crore

Notably, the reliance on disinvestment proceeds is unlikely to ease even next fiscal year, with the Centre facing heavy and multiple expenditure demands, including those for implementation of the Seventh Pay Commission recommendations and the One Rank, One Pension scheme for defence personnel. Government in its Medium Term Fiscal Policy Statement of Union Budget 2015-16 has outlined plans to raise Rs 55,000 crore and Rs 50,000 crore in 2016-17 and 2017-18, respectively, as disinvestment proceeds.

The CNX Nifty is currently trading at 7652.25, up by 2.20 points or 0.03% after trading in a range of 7625.10 and 7663.95. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 1.22%, Hindustan Unilever up by 1.19%, ONGC up by 1.17%, Reliance Industries up by 1.14% and Mahindra & Mahindra up by 1.08%. On the flip side, Idea Cellular down by 3.63%, PNB down by 2.33%, Tech Mahindra down by 2.02%, ICICI Bank down by 1.61% and Tata Steel down by 1.35% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 declined 317.52 points or 1.68% to 18,565.90, Shanghai Composite decreased 12.26 points or 0.35% to 3,508.41, Jakarta Composite slipped 2.18 points or 0.05% to 4,372.01 and FTSE Bursa Malaysia KLCI was down by 1.63 points or 0.1% to 1,628.33. On the flip side, KOSPI Index increased 5.15 points or 0.27% to 1,932.97, Taiwan Weighted gained 33.19 points or 0.41% to 8,073.35 and Hang Seng was up by 49.39 points or 0.23% to 21,359.24.