Markets continue to trade marginally in green

Indian equity benchmarks recovered from the day’s low and are now trading with modest gains in early noon session, on back of selective buying by funds as well as retail investors. Besides, short-covering by speculators in view of December monthly expiry in the futures and options space supported the upside. However, there was some cautiousness too with the Finance Minister Arun Jaitley’s statement that the subdued global economy and moderate private sector investment will continue to pose challenge in the next year. Traders were seen piling up position in Realty, TECK, IT, Consumer Durables and Power stocks, while selling was witnessed in Capital Goods and Oil & Gas sector stocks. 

On the global front, Asian markets were trading marginally in green, with investors eyeing oil prices for further clues after a turbulent year for stocks. Back home, the broader markets are trading flat- BSE Midcap and Smallcap indices are up 0.07%-0.28% respectively. Markets breadth on the BSE remains positive with 1316 shares advancing and 953 shares declining. In scrip specific development, share of Monnet Ispat & Energy was trading higher after the company announced that the allotment committee will consider a proposal to convert the debt of the company into equity under the strategic debt restructuring programme.

The BSE Sensex is currently trading at 26006.87, up by 46.84 points or 0.18% after trading in a range of 25941.91 and 26016.39. There were 17 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index gained 0.28%.

The top gaining sectoral indices on the BSE were Realty up by 0.59%, TECK up by 0.55%, IT up by 0.54%, Consumer Durables up by 0.52% and Power up by 0.23%, while Capital Goods down by 0.08% and Oil & Gas down by 0.07% were the losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.19%, Infosys up by 0.78%, GAIL India up by 0.78%, HDFC Bank up by 0.73% and Coal India up by 0.64%. On the flip side, ONGC down by 1.44%, Lupin down by 0.77%, Axis Bank down by 0.45%, Hindustan Unilever down by 0.45% and Larsen & Toubro down by 0.42% were the top losers.

Meanwhile, in a bid to attract more investments and create over 3 million jobs, the government has approved the Amended Technology Upgradation Fund Scheme (ATUFS) in place of the existing Revised Restructured TUFS for technology upgradation of the textiles industry. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Union textiles minister Santosh Gangwar said that this move is expected to attract investment to the tune of Rs 1 lakh crore and create over 3 million jobs by 2022. ATUFS aims to boost employment generation and exports in the industry by promoting the emerging technical textiles sector. The amendments in the scheme are expected to plug the loopholes in the earlier scheme and improve ease of doing business. The scheme would be implemented and monitored online under iTUFS, launched in April, 2015.

A budget provision of Rs 17,822 crore has been approved, of which Rs. 12,671 crore is for committed liabilities under the ongoing scheme, and Rs. 5,151 crore is for new cases under ATUFS. All cases pending with the Office of Textile Commissioner which are complete in all respects shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect.

Under the new scheme there will be two broad categories apparel, garment and technical textiles and other sub-sectors. The first category will receive 15% subsidy on capital investment, subject to Rs 30 crore ceiling over five years. The remaining sub-sectors would be eligible for subsidy at a rate of 10%, subject to a ceiling of Rs 20 crore. The new scheme specifically targets employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share in global exports, promotion of Technical Textiles, a sunrise sector, for export and employment, promoting conversion of existing looms to better technology looms for improvement in quality and productivity and encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.

Further, office of Textile Commissioner (TXC) is being reorganised; its offices shall be set up in each state. Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies.

The CNX Nifty is currently trading at 7912.90, up by 16.65 points or 0.21% after trading in a range of 7891.15 and 7913.25. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 1.59%, HCL up by 1.36%, Tata Power up by 1.33%, HDFC up by 1.24% and Infosys up by 0.78%. On the flip side, PNB down by 1.66%, ONGC down by 1.56%, Hindalco down by 1.24%, Vedanta down by 1.14% and Bank Of Baroda down by 1.02% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted increased 19.29 points or 0.23% to 8,299.28, Jakarta Composite increased 23.65 points or 0.52% to 4,593.01, Hang Seng increased 32.25 points or 0.15% to 21,914.40 and Nikkei 225 increased 51.48 points or 0.27% to 19,033.71, while Shanghai Composite decreased 27.04 points or 0.76% to 3,545.84, KOSPI Index decreased 5 points or 0.25% to 1,961.31 and FTSE Bursa Malaysia KLCI decreased 1.78 points or 0.11% to 1,691.36.