Markets pare most of the early gains, trade flat with positive bias

Indian markets have pared most of their early gains and are trading flat with a positive bias, the early euphoria tailing the global rally after an expected hike of Federal Reserve’s interest rates for the first time in nearly a decade, fizzled out with the main opposition Congress cold shouldering parliamentary affairs minister M Venkaiah Naidu's call to meet afresh for talks on the GST bill, the government appeared reconciled to miss the April 1 deadline to roll out the ambitious tax reforms and may make fresh attempts to pass the GST bill in the second half of the budget session early next year.  However, any serious fall was being averted by the continued rise in rupee which strengthened against the US dollar after the Fed signalled that the pace of subsequent increases will be gradual. The broader markets too were performing well and supporting the markets. On the sectoral front, most of the indices were managing to hold their gains, though auto sector, especially diesel vehicle manufacturers were steel reeling in red after the Supreme Court banned the registration of new diesel luxury cars and SUVs with an engine capacity of over 2000 cc until March 31 in Delhi. The IT stocks too were losing some pace, as the United States Congress raised the 'outsourcing fee' imposed on highly qualified Indian IT professionals to $4,000 from $2,000 after it lapsed on September 30 this year.

The BSE Sensex is currently trading at 25517.24, up by 22.87 points or 0.09% after trading in a range of 25488.54 and 25659.32. There were 20 stocks advancing against 9 stocks declining, while one stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.72%, while Small cap index was higher by 0.95%.

The top gaining sectoral indices on the BSE were Metal up by 1.14%, Realty up by 0.78%, Power up by 0.68%, Capital Goods up by 0.64%, Bankex up by 0.49% while, FMCG down by 0.25%, Auto down by 0.18% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.61%, Hindalco up by 1.65%, SBI up by 1.43%, GAIL India up by 1.24% and Vedanta up by 1.19%. On the flip side, ONGC down by 2.32%, Mahindra & Mahindra down by 1.30%, Tata Motors down by 0.74%, Axis Bank down by 0.71% and ITC down by 0.66% were the top losers.

Meanwhile, the government has approved the revised Model Text for the Indian Bilateral Investment Treaty (BIT), which can provide appropriate protection to foreign investors in India and Indian investors in the foreign country, in the light of relevant international precedents and practices, while maintaining a balance between the investor's rights and the Government obligations.

The Bill seeks to cover the limitation in earlier agreements ensuring that India does not get dragged into international arbitration on any issue settled by a judicial authority. The revised text provides for a refined Investor State Dispute Settlement (ISDS) that requires that foreign investor exhaust local remedies before commencing international arbitration. 

The revised model BIT will be used for re-negotiation of existing BIT and negotiation of future BITs and investment chapters in Comprehensive Economic Cooperation Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) / Free Trade Agreements (FTAs). The essential features of the model BIT include an 'enterprise' based definition of investment, non-discriminatory treatment through due process, national treatment, protections against expropriation, a refined Investor State Dispute Settlement (ISDS) provision requiring investors to exhaust local remedies before commencing international arbitration, and limiting the power of the tribunal to awarding monetary compensation alone.

However, the model text excludes matters such as government procurement, taxation, subsidies, compulsory licenses and national security to preserve the regulatory authority for the government. BIT increases the comfort level and boost the confidence of investors by assuring an equal opportunities and non-discrimination in all matters while providing for an independent forum for dispute settlement by arbitration.

The CNX Nifty is currently trading at 7760.80, up by 9.90 points or 0.13% after trading in a range of 7750.30 and 7800.15. There were 30 stocks advancing against 19 stocks declining, while one stock remained unchanged on the index.

The top gainers on Nifty were Tata Steel up by 2.88%, Tata Power up by 2.18%, Yes Bank up by 1.93%, PNB up by 1.53% and SBI up by 1.41%. On the flip side, ONGC down by 2.38%, Cairn India down by 1.75%, Mahindra & Mahindra down by 1.31%, Idea Cellular down by 1.19% and Axis Bank down by 0.97% were the top losers.

The Asian markets were trading higher, KOSPI Index was up by 2.03 points or 0.1% to 1,971.43, FTSE Bursa Malaysia KLCI gained 14.29 points or 0.87% to 1,648.42, Jakarta Composite was up by 53.27 points or 1.19% to 4,536.72, Shanghai Composite increased by 59.16 points or 1.68% to 3,575.35, Taiwan Weighted gained 96.33 points or 1.18% to 8,280.99, Hang Seng added180.42 points or 0.83% to 21,881.63, while Nikkei 225 surged by 306.89 points or 1.61% to 19,356.80.