Benchmarks trade in fine fettle in noon deals

Indian equity benchmarks are trading in fine fettle in noon deals as investors engaged in widening their bets amid firm global cues. Sentiments also remained up-beat on positive macroeconomic data and above-normal monsoon forecast. Traders also got some encouragement with Rajan praising government efforts and said that the current growth rate reflects the hard work of the government. He also said that India should find ways to support higher economic growth on a sustainable basis and not fritter away gains as it did in the past.

On the global front, all the Asian indices were trading in green terrain at this point of time as global crude oil prices cruised higher on lower-than-expected US crude oil inventory levels and renewed hopes that oil producers might meet once again to reduce production. Back home, banking stocks mainly public sector undertakings (PSU) remained on buyers’ radar on the bourses after some report suggests that the Reserve Bank of India (RBI) has trimmed the list of debt-laden companies for loan provisioning in the fourth quarter ended March 31, 2016. However, software counter remained under pressure after Wipro reported a sequential 0.2% drop in net profit to $337 million for the three months to March.

The BSE Sensex is currently trading at 25947.83, up by 103.65 points or 0.40% after trading in a range of 25925.12 and 26080.07. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.18%, while Small cap index down by 0.02%.

The top gaining sectoral indices on the BSE were Bankex up by 2.34%, Finance up by 1.54%, PSU up by 1.47%, Oil & Gas up by 1.02% and Energy up by 0.91%, while Telecom down by 1.28%, Realty down by 1.20%, FMCG down by 1.14%, TECK down by 0.80% and Power down by 0.78% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 5.71%, SBI up by 4.00%, Axis Bank up by 2.61%, ONGC up by 1.81% and Coal India up by 1.78%. On the flip side, Wipro down by 6.34%, BHEL down by 2.03%, ITC down by 2.03%, Hero MotoCorp down by 1.13% and Mahindra & Mahindra down by 1.01% were the top losers.

Meanwhile, the government has approved amending the Compensatory Afforestation Fund (CAF) Bill, 2015, which aims to ensure expeditious utilization of around Rs 40,000 crore for increasing forest cover in India which is currently lying unspent. The amendments include deleting some of environmental services for which credible model to assess their monetary value does not exist while it also provides for prior consultation with states for making a rule under it.

Furthermore, the amendments provide for use of monies realised from the user agencies in lieu for forest land diverted in protected areas for voluntary relocation from protected areas. The Bill is expected to be tabled in Parliament in the second half of the Budget session, which will commence from April 25.

The government said the legislation will ensure expeditious utilisation of accumulated unspent amounts available with the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA), which is currently around Rs 40,000 crore, and fresh accrual of compensatory levies and interest on accumulated unspent balance, which will be of the order of approximately Rs 6,000 crore per annum, in an efficient and transparent manner.

Earlier on May 8, 2015, the government had introduced the Compensatory Afforestation Fund Bill, 2015, in the Lok Sabha. However, on 13th May, 2015 Lok Sabha referred the Bill to the Department-related Parliamentary Standing Committee on Science & Technology, Environment & Forests. On 26th February, 2016 the Committee submitted its report to the Parliament. The Central Government after examination of the report of the Department-related Parliamentary Committee proposed to move official amendments in the Bill.

The CNX Nifty is currently trading at 7936.85, up by 22.10 points or 0.28% after trading in a range of 7930.00 and 7978.45. There were 24 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 5.76%, Bank of Baroda up by 4.59%, SBI up by 4.08%, Axis Bank up by 2.36% and BPCL up by 2.03%. On the flip side, Wipro down by 6.38%, Bharti Infratel down by 3.49%, BHEL down by 2.26%, ITC down by 2.12% and Ultratech Cement down by 1.56% were the top losers.

Asian markets were trading in green; Shanghai Composite rose 2.05 points or 0.07% to 2,974.63, FTSE Bursa Malaysia KLCI gained 6.97 points or 0.41% to 1,715.88, KOSPI Index increased 16.27 points or 0.81% to 2,022.10, Jakarta Composite jumped 26.95 points or 0.55% to 4,903.54, Taiwan Weighted added 54.17 points or 0.64% to 8,568.65, Hang Seng surged 284.62 points or 1.34% to 21,520.93 and Nikkei 225 was up by 457.08 points or 2.7% to 17,363.62.