Markets trade flat with positive bias; Nifty holds 8,700 mark

In an extremely range-bound session of trade, Indian benchmark indices altering between positive and negative territory, were now trading with a positive bias, as investors and foreign funds were adopting a cautious approach, amid weak Asian cues. Markets participants got some comfort with report that Prime Minister Narendra Modi has reviewed preparations for roll out of the new Goods and Services Tax (GST) regime, possibly from April 1 next year, with Finance Minister Arun Jaitley and his team making a presentation on the milestones achieved and the road ahead.  Some support also came with the report that US expressed willingness to have a bilateral investment treaty with India that will boost investor confidence and help increase size of bilateral trade. However, gains remained capped with reports that in September, rainfall fell 15 per cent below average, which could mean the season will end up in deficit. Trades remained cautious with the report that foreign portfolio investors (FPIs) sold shares worth a net Rs 477 crore on September 14, 2016.

On the global front, most of the Asian markets are showing weakness in trade, as investors grapple with the apparently diminishing ability of major central banks to stimulate growth, while a tumble in crude oil prices added to the risk-averse mood. While expectations over a Federal Reserve rate hike at next week's meeting have faded, investors are bracing for a tightening before year-end. The Fed and the BOJ both hold two-day policy meetings that end next week, with the BOJ due to comprehensively review its policies. Overnight, US stocks ended flat with negative prices with energy shares emerging as the top losers, amid weak crude oil prices.

Back home, stocks from FMCG and Realty counters were supporting the markets’ uptrend, while those from Consumer Durables, Banking and PSU counters were adding to the underlying cautious undertone. In scrip specific development, BEML came under pressure after the company reported a net loss of Rs 107.10 crore for the quarter ended June 30, 2016 as compared to a net loss of Rs 68.10 crore for the same quarter in the previous year. On the other hand, RattanIndia Power jumped after the company reported a net profit of Rs 4.97 crore for the quarter ended June 30, 2016 as compared to a net loss of Rs 244.33 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 28381.43, up by 9.20 points or 0.03% after trading in a range of 28311.11 and 28432.74. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in mix; the BSE Mid cap index was down by 0.26%, while Small cap index up by 0.29%.

The few gaining sectoral indices on the BSE were FMCG up by 1.20% and Realty up by 0.12%, while Consumer Durables down by 0.70%, Bankex down by 0.68%, PSU down by 0.64%, Oil & Gas down by 0.62% and Metal down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.24%, Cipla up by 2.11%, Sun Pharma Inds. up by 1.31%, Hindustan Unilever up by 1.09% and Maruti Suzuki up by 0.87%. On the flip side, Axis Bank down by 2.53%, Hero MotoCorp down by 1.80%, Tata Steel down by 1.57%, Power Grid down by 1.12% and Larsen & Toubro down by 0.95% were the top losers.

Meanwhile,  global law firm Reed Smith in partnership with Mergermarket, in its latest report titled 'Taking Stock: Going Public in Volatile Times' stated that businesses in Asia are confident that initial public offering (IPO) activity will see an upsurge in the coming year. The report is based on the survey of 100 C-level executives, across Asia pacific, North America and Europe. All 100 companies are considering IPO in next three years.

According to the survey 44% of Asia-based respondents expect IPO markets to return to last years' highs within a year, 11% believe markets will rebound within six months, while none expect a rebound in other regions. However, survey respondents also show caution with 70% saying the recent turmoil in Chinese equity markets has influenced their IPO strategy.

The report stated that when it comes to post-IPO challenges, 59% of survey respondents cited greater public scrutiny among their top three reservations, while nearly half that is 49% concern about their stock being subject to market volatility ranked in the top three. The report added that short-termism, shareholder pressure and the risk of litigation also ranked high in the list of reservations about being a publicly listed company. Further, Global IPO volume has fallen 38% to just 339 in the first six months of 2016, from the first half of 2015 with a total of 544.

The CNX Nifty is currently trading at 8727.80, up by 1.20 points or 0.01% after trading in a range of 8704.35 and 8749.20. There were 22 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ITC up by 2.20%, Cipla up by 2.16%, Zee Entertainment up by 1.55%, Aurobindo Pharma up by 1.46% and Sun Pharma up by 1.37%. On the flip side, Axis Bank down by 2.45%, Yes Bank down by 2.37%, Hero MotoCorp down by 1.71%, Bank of Baroda down by 1.60% and Tata Steel down by 1.59% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 declined 1.33%, Taiwan Weighted decreased 0.43%, Shanghai Composite shed 0.68% and FTSE Bursa Malaysia KLCI was down by 0.36%. On the flip side, KOSPI Index increased 0.4%, Jakarta Composite gained 1.05% and Hang Seng was up by 0.53%.