Markets trade flat in early noon session

Indian equity benchmarks trimmed early losses and were trading flat in early noon session as investors were relieved that imposition of capital gains taxes on investments coming from Mauritius, will apply only from next year and not to existing holdings. Further, investors got some support with private report that India's real agriculture Gross value added (GVA) growth is projected to rise 1.1 percent in 2015-16, despite below-normal monsoon last year. According to the report, the ongoing diversification in the agriculture sector has reduced volatility in agriculture output and farm incomes. Meanwhile, investors remained cautious ahead of the key macro data -- IIP and CPI numbers due to be unveiled tomorrow.

On the global front, Asian markets were trading mixed, as investors shrugged off an overnight rally in global stocks and looked to bonds in the absence of signs of a sustainable recovery in China and other emerging markets. Back home, in scrip specific development, share of Sterlite Technologies was trading higher as the company has won the Jaipur Smart City Phase - II Project. Jaipur, the Pink City, was selected under the Smart City Mission of Ministry of Urban Development launched in 2015. This is the company’s second smart city project win. SRF was trading higher after the company reported 82 percent increase in its consolidated net profit at Rs 108.79 crore for the quarter ended March 31, on account of lower expenses and rise in income.

The BSE Sensex is currently trading at 25760.28, down by 12.25 points or 0.05% after trading in a range of 25409.24 and 25762.49. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.45%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were Bankex up by 0.52%, Capital Goods up by 0.42%, Metal up by 0.34%, Auto up by 0.18% and Power up by 0.03%, while Oil & Gas down by 0.66%, PSU down by 0.40%, Realty down by 0.28%, Consumer Durables down by 0.19% and IT down by 0.19% were the losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.05%, Maruti Suzuki up by 1.22%, Asian Paints up by 1.10%, NTPC up by 0.82% and Larsen & Toubro up by 0.79%. On the flip side, Dr. Reddys Lab down by 1.50%, ONGC down by 1.23%, ITC down by 1.02%, Coal India down by 0.74% and BHEL down by 0.70% were the top losers.

Meanwhile, in order to ensure that poverty is totally eliminated and is not just confined to being alleviated, President Pranab Mukherjee has said that India will have to raise its growth rate to 8.5-9 per cent annually over the next 15-20 years. President feels proud of what India has achieved and is optimistic about what the country can achieve. He said “Our current growth rate is around 7.6 percent and we should not be complacent. If we have to achieve our developmental goals, we must raise our growth rate to 8.5 to 9 per cent annually over the next 15-20”.

President said that the world is moving fast and India has to keep pace and added that the time available is short but India’s strength is its mighty hands. He said that India needs competent and knowledgeable officials to guide policy making. Addressing the young group of trainee officers from the Indian Economic Service 2014 at Rashtrapati Bhavan, President said that the expectations from them are high and a big responsibility rests on their young shoulders. He said that the service they have joined provides them an opportunity to serve the people and country for many years and that they will have to advise the political executive in the formulation of policies.

He said that the Indian economy has witnessed many ups and downs. From 1951 to 1979, India had an average growth rate of 3.5 per cent which was called the Hindu growth rate and added that in 80s, the economy grew at an average rate of 5 to 5.6 per cent. From 1991 onwards, the growth rate rose to an average of 7 per cent.

The CNX Nifty is currently trading at 7891.50, up by 3.70 points or 0.05% after trading in a range of 7780.90 and 7893.10. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 6.81%, Hindalco up by 3.06%, Axis Bank up by 2.00%, Ultratech Cement up by 1.65% and Kotak Mahindra Bank up by 1.60%. On the flip side, Bharti Infratel down by 1.45%, Dr. Reddys Lab down by 1.38%, ONGC down by 1.23%, BPCL down by 1.14% and ITC down by 1.05% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 3.58 points or 0.22% to 1,639.42, Shanghai Composite increased 9.87 points or 0.35% to 2,842.46, Nikkei 225 increased 13.82 points or 0.08% to 16,579.01 and Jakarta Composite increased 24.83 points or 0.52% to 4,787.94, while Hang Seng decreased 130.92 points or 0.65% to 20,111.76, Taiwan Weighted decreased 20.73 points or 0.25% to 8,135.56 and KOSPI Index decreased 2.4 points or 0.12% to 1,980.10.