Benchmarks trade in green; Metal, Auto lead

Indian equity benchmarks continued its firm trade in the late afternoon session on account of buying in front line blue chip counters. The sentiments were on optimistic note on reports that foreign direct investment (FDI) in the country has doubled to about $ 4.5 billion in December 2015. In December 2014, India had received $2.16 billion. Traders were seen piling position in Metal, Auto and Bankex sector stocks. Hectic buying activity was witnessed in metal sector stocks on reports that India may set Minimum Import Price (MIP) on steel imports. In scrip specific development, OnMobile Global was trading in red on back of poor Q3 earnings. The company’s third quarter consolidated net loss stood at Rs 7.6 crore (includes one-time loss of Rs 6.5 crore) against profit of Rs 1.3 crore, Q-o-Q. The company’s total income was at Rs 206.8 crore versus Rs 207 crore and other income declined by 31 percent at Rs 5.5 crore against Rs 8 crore, Q-o-Q.

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 7,450 and 24,500 levels respectively. The market breadth on BSE was positive in the ratio of 1397:1047 while 138 scrips remained unchanged.

The BSE Sensex is currently trading at 24502.07, up by 163.64 points or 0.67% after trading in a range of 24345.79 and 24606.00. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.47%, while Small cap index up by 0.78%.

The gaining sectoral indices on the BSE were Metal up by 1.89%, Auto up by 1.46%, Bankex up by 1.28%, FMCG up by 1.04%, Consumer Durables up by 1.01%.

The top gainers on the Sensex were Tata Motors up by 3.39%, Axis Bank up by 3.06%, Cipla up by 2.77%, Hero MotoCorp up by 2.55% and Dr. Reddy’s Lab up by 2.40%.

On the flip side, GAIL India down by 2.85%, Maruti Suzuki down by 2.21%, Adani Ports & Special Economic Zone down by 2.14%, Coal India down by 0.68% and NTPC down by 0.56% were the top losers.

Meanwhile, afresh the demand for pay revision can be raised by Ministries and departments, if they find that some of the justified suggestions made by the staff associations were not accepted by the 7th Central Pay Commission. Such demands could be submitted to the Implementation Cell (IC), created in the Finance Ministry, to work as Secretariat for the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha. The CoS will screen the recommendations of the Commission and firm up the conclusions for approval of the Cabinet.

Minutes of the of first meeting of the IC has said that If a representation was made by a Staff Association before the 7th Central Pay Commission and the Commission after due diligence has not accepted the demand made there in, the same matter normally not be considered at the stage. However, if departments consider that the issues are of such nature that they require consideration at this stage also, then they may give their comments with full justifications to the IC.

In order to process the recommendations of the 7th Central Pay Commission, the government has set up a 13-member Empowered CoS headed by Cabinet Secretary which functions as a Screening Committee to screen the recommendations of the Commission after taking into account the views of the concerned stakeholders. The final recommendations of the Empowered Committee of Secretaries will be submitted for approval of the Cabinet.

The 7th Pay Commission has recommended a 23.55 percent hike in salary, allowances and pension involving an additional burden of Rs 1.02 lakh crore for the government, of which increase in salary would be Rs 39,100 crore, allowances Rs 29,300 crore and pension Rs 33,700 crore. The new pay scales, subject to acceptance by the government, will come into effect from January 1, 2016.

The CNX Nifty is currently trading at 7460.05, up by 56.05 points or 0.76% after trading in a range of 7406.65 and 7485.00. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 8.12%, Hindalco up by 4.00%, Tata Motors up by 3.63%, PNB up by 3.41% and Axis Bank up by 2.85%.

On the flip side, GAIL India down by 3.15%, Adani Ports & Special Economic Zone down by 2.60%, Maruti Suzuki down by 2.32%, Bosch down by 1.58% and Power Grid Corporation down by 1.19% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 1.53 points or 0.08% to 1,917.79, FTSE Bursa Malaysia KLCI increased 4.23 points or 0.26% to 1,661.00, Hang Seng increased 105.08 points or 0.55% to 19,288.17 and Jakarta Composite increased 121.47 points or 2.6% to 4,787.29.

On the other hand, Nikkei 225 decreased 225.4 points or 1.32% to 16,819.59 and Shanghai Composite decreased 17.53 points or 0.63% to 2,763.49.

Taiwan Stock Exchange was closed on account of ‘Non Trading Day’ holiday.

The European markets were trading mostly in green; UK’s FTSE 100 increased 5.21 points or 0.09% to 5,903.97, France’s CAC increased 6.94 points or 0.16% to 4,235.47 while Germany’s DAX decreased 36.27 points or 0.39% to 9,357.09.