Markets trade flat with negative bias in early noon session

Indian equity benchmarks continue to trade in negative zone in early noon session, on the back of selling in frontline blue-chip counters and a weak trend at other Asian bourses.  The sentiments were weighed down by the report that the Finance Ministry has cut its ambitious disinvestment revenue target by 57% to Rs 30,000 crore for the current fiscal year. Despite missing targets in the past five years, the Centre had set an ambitious disinvestment revenue target of Rs. 69,500 crore (Rs 41,000 crore through PSU stake sales and Rs 28,500 crore via strategic stake sales) for FY16. But, strategic stake sales failed to take off and minority stake sales in PSUs also came to a halt after initial promise due to volatile markets. Back on street, broader markets are trading in the opposite direction, BSE MidCap and SmallCap indices were higher 0.32 percent and 0.48 percent each. On the sectoral front, traders were seen pilling up positions in realty, consumer durables, power, Bankex and PSU, while selling was witnessed in IT, TECK, FMCG, auto and Capital Goods. 

On the global front, Asian markets were trading mostly in green, as investors pondered outlook for more economic stimulus from China. Back home, in scrip specific development, share of Housing Development & Infrastructure was trading higher after the real estate major informed BSE that it has sold development rights on its land parcel at Mumbai’s Kurla to DK Realty (India) for Rs 649.51 crore. Eon Electric was trading higher after the company received an extended LED streetlight installation contract aimed at replacing conventional streetlights with LEDs in Jodhpur.

The BSE Sensex is currently trading at 25714.58, down by 21.32 points or 0.08% after trading in a range of 25485.17 and 25738.57. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.27%, while Small cap index up by 0.47%.

The top gaining sectoral indices on the BSE were Realty up by 1.29%, Consumer Durables up by 0.44%, Power up by 0.42%, Bankex up by 0.41% and PSU up by 0.29%, while IT down by 0.84%, TECK down by 0.60%, FMCG down by 0.35%, Auto down by 0.14% and Capital Goods down by 0.04% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.61%, Axis Bank up by 1.37%, Bharti Airtel up by 1.31%, Sun Pharma Inds. up by 0.96% and Tata Steel up by 0.95%. On the flip side, Infosys down by 1.51%, TCS down by 1.09%, Mahindra & Mahindra down by 1.03%, ITC down by 0.64% and Adani Ports &Special down by 0.56% were the top losers.

Meanwhile, the Telecom Regulatory Authority of India (TRAI) will come up with its recommendations on spectrum pricing for the next round of auction by mid-January. TRAI Chairman R S Sharma has said that “We have open house discussions on January 4. After that we should be able to give recommendation very soon, hopefully by mid-January”.

However, it has been reported that the government may not be able to commence spectrum auction in current financial year as there are various processes involved and main procedures will start after TRAI submits its suggestions on the pricing. Though, Trai is making effort to expedite the process.

Telecom regulator TRAI has floated a consultation paper on reference made by the government to suggest the base or floor price for all available airwaves for mobile services. Comments were also invited for quantum of spectrum to be auctioned, spectrum block size, spectrum cap, rollout obligations and methods to be used for valuation of reserve price.

TRAI had sought public view on price of spectrum in 700, 800, 900, 1800, 2100, 2300 and 2500 MHz Bands. The deadline for comments on the consultation process ended on December 21and people can submit counter comment by December 28. The government had pegged a revenue of Rs 42,865.62 crore from communication services that include upfront realisation from spectrum sale and licence fee for the current fiscal year.

The CNX Nifty is currently trading at 7824.85, down by 9.60 points or 0.12% after trading in a range of 7802.00 and 7831.05. There were 28 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 1.59%, Bharti Airtel up by 1.31%, Idea Cellular up by 1.30%, Tata Steel up by 1.24% and Axis Bank up by 1.14%. On the flip side, Infosys down by 1.55%, Mahindra & Mahindra down by 1.31%, TCS down by 1.29%, ITC down by 0.93% and Indusind Bank down by 0.82% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 5.42 points or 0.33% to 1,634.51, Jakarta Composite increased 9.3 points or 0.21% to 4,499.98, KOSPI Index increased 10.99 points or 0.55% to 1,992.18 and Nikkei 225 increased 15.87 points or 0.08% to 18,931.89, while Shanghai Composite decreased 13.83 points or 0.38% to 3,628.64, Taiwan Weighted decreased 6.94 points or 0.08% to 8,275.23 and Hang Seng decreased 6.23 points or 0.03% to 21,785.45.