Benchmarks erase early losses; starts trading in green

Indian equity markets erased all theearly losses and are now trading in green on account of buying in frontlineblue chip counters. Markets got some support with the cabinet approving a Rs12,000-crore outlay for Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to impartskills to 1 crore people over the next four years (2016-20). However, investors remained cautious ahead of the start of the June quarter earnings. Further, India's Wholesale Price Index (WPI) in the month of June 2016 increased to 1.62percent compared to 0.79 percent in the previous month and -2.13 percent duringthe corresponding month of the previous year. In scrip specific development,shares of Bharat Forge slipped around 3 per cent in trade after reports thatthe company sold 49 per cent stake in its defence arm Kalyani Strategic Systems(KSSL) to the promoter group.

On the global front, Asian markets were trading mixed, ahead of Bank of England's interest rate decision later inthe global day.

The BSE Sensex is currently trading at27776.33, down by 38.85 points or 0.14% after trading in a range of 27763.15and 27866.11. There were 15 stocks advancing against 15 stocks declining on theindex.

The broader indices were trading ingreen; the BSE Mid cap index was up by 0.18%, while Small cap index added0.57%.

The top gaining sectoral indices onthe BSE were Consumer Durables up by 1.77%, PSU up by 0.58%, Bankex up by0.40%, Power up by 0.29% and Capital Goods up by 0.22%, while IT down by 0.23%,TECK down by 0.14%, Realty down by 0.12% and FMCG down by 0.04% were the losingindices on BSE.

The top gainers on the Sensex wereTata Motors up by 1.43%, Power Grid Corpn. up by 1.36%, GAIL India up by 1.31%, Maruti Suzuki up by 1.22% and SBI up by 1.19%. On the flip side, ONGC down by2.05%, Mahindra & Mahindra down by 1.73%, Sun Pharma Inds. down by 1.07%,Cipla down by 1.02% and Dr. Reddys Lab down by 0.96% were the top losers.

Meanwhile, concerned over thereducing water level in agricultural states of Punjab and Haryana, the NationalBank for Agriculture and Rural Development (NABARD) under its waterconservation and management initiatives, is taking several steps to recoverwater table, like roping in environmental activists Sant Balbir SinghSeechewal, who has been instrumental cleansing a number of rivulets in theregion.

Steps taken by NABARD can set a newtrend and farmer’s economy can be managed efficiently. With water level goingas deep as 200 meter in some pockets of Punjab, farmers are relying on tubewells, which has raised the input cost substantially. Punjab alone shells out apower subsidy of Rs 4500 crore per annum, putting extra burden on the stateexchequer, that is reeling under a debt of more than Rs 1.25 lakh crore.

The bank plans to coverapproximately 3300 villages out of approximately 12000 villages in Punjab underits water conservation and management initiatives. It will educate masses atvillage and block levels on new innovations in water conservation. Further,NABARD had launched state wide awareness campaign for Conservation,Preservation and Management of water to enhance water efficiency by keeping intune with the efforts of Government of India for water conservation in thecountry. It aims to engage community through Self Help Groups, Farmers' Club andProducer Organisations.

The CNX Nifty is currently tradingat 8510.40, down by 9.10 points or 0.11% after trading in a range of 8500.70and 8523.40. There were 27 stocks advancing against 24 stocks declining on theindex.

The top gainers on Nifty were Bankof Baroda up by 2.00%, Tata Motors - DVR up by 1.70%, Ultratech Cement up by1.36%, Tech Mahindra up by 1.33% and Power Grid Corpn. up by 1.30%. On the flipside, ONGC down by 1.92%, Mahindra & Mahindra down by 1.70%, Sun Pharma Inds. down by 1.34%, Dr. Reddys Lab down by 1.10% and Tata Power down by 0.97%were the top losers.

Asian markets were trading mixed, KOSPI Index increased 2.77 points or 0.14% to 2,008.32, Taiwan Weightedincreased 8.61 points or 0.1% to 8,866.36, Hang Seng increased 24.31 points or 0.11% to 21,346.68 and Nikkei 225 increased 114.4 points or 0.7% to16,345.83.

On the other hand, Jakarta Composite decreased 28.76 points or 0.56%to 5,105.18, Shanghai Composite decreased 8.92 points or 0.29% to 3,051.76 and FTSE Bursa Malaysia KLCI decreased 3.6 points or 0.22% to 1,656.79.