Benchmarks erase most of the gains on selling in bluechips

Indian equity markets have erased most of the gains in the afternoon session on account of selling in frontline blue chip counters. Investors remained cautious ahead of June IIP and retail inflation data for July to be released tomorrow. Further weak trend in the Asian region and depreciation in rupee value also weighed on the sentiments. However, some support was coming from report that foreign institutional investors were net buyers in equities worth Rs 413 crore on Wednesday, as per provisional stock exchange data. Traders were seen piling position in FMCG, Power, Oil & Gas, IT and TECK stock, while selling was witnessed in Metal, Capital Goods, PSU, Auto and Consumer Durables sector stocks. In scrip specific development, UltraTech Cement gained after the Competition Commission of India approved its deal to buy Jaypee Group's cement business, while Sun Pharma was down on the back of weak earnings from its overseas subsidiary Taro Pharmaceuticals.

On the global front, Asian markets were trading mixed after US shares decline overnight by a sell-off in energy companies due to lower oil prices and some disappointment over the New Zealand central bank's interest rate cut. Back home, The BSE Sensex is currently trading at 27874.18, up by 99.30 points or 0.36% after trading in a range of 27697.33 and 27902.39. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.16%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were FMCG up by 0.86%, Power up by 0.64%, Oil & Gas up by 0.57%, IT up by 0.47% and TECK up by 0.26%, while Metal down by 0.54%, Capital Goods down by 0.24%, PSU down by 0.24%, Auto down by 0.12% and Consumer Durables down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Lupin up by 1.90%, Reliance Industries up by 1.78%, ICICI Bank up by 1.53%, Axis Bank up by 1.23% and TCS up by 1.20%. On the flip side, Mahindra & Mahindra down by 1.81%, Sun Pharma Inds. down by 1.73%, SBI down by 1.12%, Bharti Airtel down by 0.74% and Coal India down by 0.72% were the top losers.

Meanwhile, with an ambition to monetise the assets of public sector enterprises, the government is working out a plan to optimally utilise land banks of all central public sector companies (CPSEs), including profit making firms to assess if their existing resources can be utilised for spurring the economic growth, though the government will initially focus on loss making enterprises.

The government is likely to offer the vast pool of land in the possession of loss-making state-owned companies to its profit-making undertakings and state governments, as part of a monetisation exercise to extract maximum value from its sick entities. The move is aimed at unlocking value from approximately 50,000 acre of prime land available with over 50 loss-making public sector undertakings. This will also allow profitable PSUs owned by both the Union and state governments to access new land bank for Greenfield expansion.

Niti Aayog had recently given its report on 74 weak and loss making entities where it has identified 26 firms for closure or winding up. The government may offer the land available with these lossmaking enterprises to state governments, other CPSEs or public sector banks. If another CPSE is interested in setting up a unit, that land bank will be made available, subject to clearances, if required.

The assessment is on for four companies that have been closed down, including HMT Chinar Watches, HMT Watches, HMT Bearings and Tungabhadra Steel Products. The government may offer the land available with these loss making enterprises to state governments, other CPSEs or public sector banks.

The CNX Nifty is currently trading at 8597.95, up by 22.65 points or 0.26% after trading in a range of 8547.45 and 8601.15. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.53% , Eicher Motors up by 2.07%, Lupin up by 1.99% , Reliance Industries up by 1.78% and Tata Power up by 1.69%. On the flip side, Bank Of Baroda down by 8.01%, Grasim Industries down by 4.68%, Zee Entertainment down by 2.66%, Mahindra & Mahindra down by 1.99% and Sun Pharma Inds. down by 1.89% were the top losers.

Asian markets were trading mixed, FTSE Bursa Malaysia KLCI increased 1.6 points or 0.1% to 1,674.63, KOSPI Index increased 4.16 points or 0.2% to 2,048.80, Jakarta Composite increased 25.74 points or 0.47% to 5,449.69 and Hang Seng increased 169.39 points or 0.75% to 22,661.82. On the flip side, Taiwan Weighted decreased 68.59 points or 0.75% to 9,131.83, Nikkei 225 decreased 29.85 points or 0.18% to 16,735.12 and Shanghai Composite decreased 0.55 points or 0.02% to 3,018.19.