Benchmarks trade flat in late morning session

Indian equity benchmarks continued their lackluster trade hovering near the neutral line in the late morning session in absence of any positive triggers. Minor buying crept in after Moody’s Investors Service retained India’s growth forecast at 7.5% for 2016 and revised upwards estimates for China to 6.6% citing strong fiscal and monetary support. Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 162.17 crore yesterday, August 18, 2016, as per provisional data released by the stock exchanges. K. Balamurugan, Additional Commissioner, Ministry of Finance, Department of Revenue, Government of India said that the Goods and Services Tax is one of the biggest tax reforms since Independence. The GST will not have any problem for those who are paying tax sincerely but it will affect those who are not paying properly. The sentiments were dampened as Indian rupee weakened for the second consecutive session against the US dollar, tracking losses in the Asian currencies markets. Investors remained cautious ahead of the announcement of a new governor for the Reserve Bank of India (RBI) expected anytime now. Traders were seen piling position in Consumer Durables, Power and PSU stocks, while selling was witnessed in TECK and IT sector stocks. In scrip specific development, Shipping Corporation of India was trading under pressure on reporting weak numbers for the quarter ended June 2016. The company’s Q1 (April-June) net profit was down 72.6 percent at Rs 55.9 crore and total income was down 22.5 percent at Rs 840.5 crore.

On the global front, Asian stocks retreated and the dollar edged up from a near eight-week low after some Federal Reserve officials reiterated the case for raising interest rates in coming months. Home price rises in China’s biggest cities showed signs of easing in July, adding to concerns that one of the economy’s key growth drivers is losing steam but offering some relief for policymakers worried about property bubbles. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,650 and 28,100 levels respectively. The market breadth on BSE was positive in the ratio of 1334:784, while 135 scrips remained unchanged.

The BSE Sensex is currently trading at 28114.59, down by 8.85 points or 0.03% after trading in a range of 28093.05 and 28212.30. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.55%, while Small cap index was up by 0.53%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.48%, Power up by 0.46%, PSU up by 0.43%, Capital Goods up by 0.42% and Bankex up by 0.40%, while TECK down by 0.18% and IT down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.26%, Asian Paints up by 1.61%, NTPC up by 1.41%, Cipla up by 1.11% and Tata Steel up by 0.63%.

On the flip side, Coal India down by 1.42%, TCS down by 1.16%, Power Grid Corporation down by 0.91%, Bharti Airtel down by 0.72% and HDFC down by 0.72% were the top losers.

Meanwhile, India has expressed eagerness to jointly develop iron ore and coal mines in Russian territory to bolster bilateral trade, economic ties and sought technical inputs on producing high-grade cold-rolled, grain-oriented steel, typically used in power transmission equipment.

An India-Russia working group on industrial cooperation and modernisation during its meeting has identified fields such as technology for production of CRGO steel in India, modernisation of steel manufacturing facilities in India and pharmaceutical industry for enhancing cooperation. They also identified specific areas of cooperation in the field of mining and metallurgy.

Commerce and Industry Ministry said that the Indian side expressed interest in joint development of coal fields and iron ore mines in Russia. They agreed to exchange information on such areas having potential for cooperation. It also said that in the civil aviation sector, Russia has declared its readiness to participate in the ‘Make in India’ programme to develop technological and production capabilities of India in this field and potential supplies of the jointly produced equipment to third countries.

Ministry further said as regards fertilizer sector, both sides expressed mutual interest in developing the long-term and mutually beneficial cooperation in the field of mineral fertilizers. It added the Russia reconfirmed their interest in receiving information about possible participation of Russian companies in the Delhi-Mumbai Industrial Corridor (DMIC). Besides, both sides have agreed to hold the next meeting of the working group in 2017 in Russia.

The CNX Nifty is currently trading at 8675.20, up by 1.95 points or 0.02% after trading in a range of 8663.35 and 8696.60. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were SBI up by 3.28%, Hindalco up by 2.36%, Bank of Baroda up by 2.23%, NTPC up by 1.68% and Ultratech Cement up by 1.67%.

On the flip side, Coal India down by 1.50%, Bharti Infratel down by 1.26%, TCS down by 1.25%, Power Grid Corporation down by 1.04% and Bharti Airtel down by 0.99% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 78.92 points or 0.34% to 22,944.24, Taiwan Weighted decreased 66.26 points or 0.73% to 9,056.24, Shanghai Composite decreased 14.04 points or 0.45% to 3,090.07, Jakarta Composite decreased 5.54 points or 0.1% to 5,455.91, FTSE Bursa Malaysia KLCI decreased 3.73 points or 0.22% to 1,691.14 and KOSPI Index decreased 1.25 points or 0.06% to 2,054.22.

On the other hand, Nikkei 225 increased 67.69 points or 0.41% to 16,553.70.