Markets trade steady after a positive start

Coming after a day of break, the Indian markets have made a positive start, though the gains are modest but there is no sign of trepidation as was witnessed in the last trading session despite the fact that US stated India’s growth rate target of 7.5% “overstated” due to “depressed investor sentiment” stemming from its failure to implement crucial market reforms. Traders were getting some support with IMD’s report that the monsoon rain is now 1 per cent in surplus. IMD stated that the Southwest monsoon rainfall has shown a marginal rise of one per cent with a good amount of precipitation in several parts of the country for the period between June 1 and July 6. The rupee too has made a positive start against the US dollar and was supporting the equity markets. The BSE Sensex was comfortably trading above 27200 level, while the Nifty was 

On the global front, the mood was mixed and some of the regional indices traded in red despite bounce back in the US markets overnight, after an upbeat service sector activity data in the month of June. Back on street, while most of the sectoral indices are trading in green, realty and metal has taken the lead, while the IT stocks were still under pressure. In non sectoral gauges, the aviation stocks were flying high on reports from International Air Transport Association (IATA) that India logged the fastest domestic air passenger growth in 2015 surpassing both China and the United States.

The BSE Sensex is currently trading at 27231.77, up by 64.90 points or 0.24% after trading in a range of 27161.37 and 27240.34. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices too were trading in green; the BSE Mid cap index was up by 0.16%, while Small cap index gained 0.55%.

The top gaining sectoral indices on the BSE were Realty up by 1.56%, Metal up by 1.15%, PSU up by 0.59%, FMCG up by 0.53%, Consumer Durables up by 0.33%, while IT down by 0.91%, TECK down by 0.75%, Capital Goods down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 1.54%, Bharti Airtel up by 1.26%, Hindustan Unilever up by 1.20%, Coal India up by 0.99% and Tata Motors up by 0.97%. On the flip side, Infosys down by 1.17%, NTPC down by 0.98%, TCS down by 0.58%, Wipro down by 0.56% and Maruti Suzuki down by 0.36% were the top losers.

Meanwhile, the annual Networked Readiness Index released by Geneva-based World Economic Forum (WEF) showed that India dropped two places to 91st position on a global list of countries in term of their readiness for transition to a digitized economy and society. For the fourth year in a row India come down in its position, from 89th in 2015, 83rd in 2014 and 68th in 2013. According to the WEF data, Singapore topped once again in the list and Finland also retained its second place. Others in the top-ten are Sweden, Norway, the US, the Netherlands, Switzerland, the UK, Luxembourg and Japan.

Among the major emerging markets, India is ranked the lowest with Russia retaining the top place at 41st rank, followed by China at 59th (up three places), South Africa up 10 places at 65th and Brazil moving up to 72nd position. The report said that India has scored better in terms of political and regulatory environment (78th position), though it fared worse in terms of business and innovation environment (110th).

Further report added that, only 15 out of 100 households have access to the Internet and mobile broadband remains a privilege of the few, with only 5.5 subscriptions for every 100 people. The annual Networked Readiness index, forming part of the WEF’s Global Information Technology Report, measures countries’ success in creating the conditions necessary for a transition to a digitised economy and society.

The CNX Nifty is currently trading at 8341.65, up by 5.70 points or 0.07% after trading in a range of 8321.85 and 8343.75. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.35%, Dr. Reddys Lab up by 1.42%, Bharti Airtel up by 1.26%, Bank Of Baroda up by 1.19% and Hindustan Unilever up by 1.17%. On the flip side, Zee Entertainment down by 2.73%, Tech Mahindra down by 1.88%, HCL Tech. down by 1.59%, Infosys down by 1.30% and Bharti Infratel down by 1.27% were the top losers.

The Asian markets were showing mixed trend, KOSPI Index increased 19.39 points or 0.99% to 1,972.51, Taiwan Weighted gained 69.94 points or 0.82% to 8,645.69 and Hang Seng was higher by157.77 points or 0.77% to 20,653.06.

On the other hand, Nikkei 225 declined by 54.51 points or 0.35% to 15,324.48, Jakarta Composite was lower by 45.07 points or 0.9% to 4,971.58 and Shanghai Composite decreased by 14.78 points or 0.49% to 3,002.51.