Post Session: Quick Review

Wednesday turned out to be a disappointing day of trade for Indian equity benchmarks which ended the session flat with negative bias. The benchmarks started the trade on a positive note in early deals with global rating agency Moody’s statement that it could upgrade India’s rating in 1-2 years if it is convinced that reforms are tangible, though it has called the reform process slow and gradual with muted private investment and NPAs posing a challenge. It said that it has a positive outlook on India. Investors took note of economic affairs secretary Shaktikanta Das statement that the finance ministry has promised to look into some taxation issues raised by foreign investors, some of which may be addressed in the budget next year. Das added that foreign investors came up with a number of specific suggestions on process simplification as well as other issues and are looking at bigger opportunities for investing in Indian market. Meanwhile, the Union Cabinet has officially ended the practice of putting up a separate Railway Budget, which started in 1924, by merging it with the General Budget. The Cabinet also cleared finance ministry’s proposals to reform the entire budgetary process, including advancing the date of budget presentation and dropping the plan and non-plan distinction. All eyes are now set on the policy decision of US Federal Reserve which is widely anticipated that Fed will leave the price of money unchanged for ninth-straight month. Investors will pay close attention to the slightest hints for near-term changes to the path of policy normalization.

On the global front, Asian markets ended mostly higher with Japanese stocks rallied and the yen weakened in a volatile session after the Bank of Japan decided to adopt a target for long-term interest rates in an overhaul of its massive stimulus program. The BOJ maintained the 0.1 percent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank. European stocks rallied after the Bank of Japan announced new monetary policy measures and as investors awaited the outcome of the US Federal Reserve’s meeting.

Back home, textile companies stocks edged higher on the report that the finance ministry has promised to look into some taxation issues raised by foreign investors, some of which may be addressed in the budget next year. Some stocks related to infra sector gained traction, as the government has announced the names of 27 more cities that will be developed under the centre’s ‘Smart City Mission’.

The BSE Sensex ended at 28508.54, down by 14.66 points or 0.05% after trading in a range of 28462.33 and 28689.36. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.18%, while Small cap index was up by 0.15%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.87%, TECK up by 0.45%, Metal up by 0.43%, IT up by 0.28% and Auto up by 0.17% while, FMCG down by 0.61%, PSU down by 0.33%, Power down by 0.23%, Oil & Gas down by 0.23% and Capital Goods down by 0.19% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 0.94%, Hindustan Unilever up by 0.82%, Axis Bank up by 0.77%, Bharti Airtel up by 0.69% and Infosys up by 0.68%. (Provisional)

On the flip side, Power Grid down by 1.43%, ITC down by 1.24%, SBI down by 0.96%, ICICI Bank down by 0.74% and GAIL India down by 0.61% were the top losers. (Provisional)

Meanwhile, hailing the government’s announcement of 27 more cities under the flagship smart cities mission, the apex national body for the real estate industry, National Real Estate Development Council (NAREDCO) has said that this move would provide business opportunities for the real estate developers. Under the Smart City Mission, the government aims to have 100 smart cities by 2022. Sixty have been chosen so far, including 20 in January and 13 in May this year.

NAREDCO President Parveen Jain said that the inclusion of cities like Agra, Amritsar, Ujjain, Varanasi, Tirupati and Vellore etc. will boost the tourism sector as well as bringing up these cities on global tourism map. He said the development of smart cities would lead to well planned urbanization with aesthetic beauty comparable to international standards. Further, NAREDCO sees huge opportunities for the real estate industry in transforming these selected cities into smart cities.

The government aims to transform about 100 cities, with the Centre providing financial support of Rs 48,000 crore over five years. Each city will receive Central assistance of Rs 200 crore in the first year and Rs 100 crore over the three subsequent financial years. State governments and respective urban local bodies will also match the Centre's contribution.

The CNX Nifty ended at 8773.80, down by 2.10 points or 0.02% after trading in a range of 8757.30 and 8826.85. There were 28 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Infratel up by 4.65%, Eicher Motors up by 3.20%, Hindalco up by 2.58%, Yes Bank up by 1.16% and Tata Steel up by 1.05%. (Provisional)

On the flip side, Bank of Baroda down by 1.62%, Power Grid Corporation down by 1.49%, Ambuja Cement down by 1.20%, ITC down by 1.15% and ONGC down by 1.13% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 25.49 points or 0.37% to 6,856.28, Germany’s DAX increased 108.15 points or 1.04% to 10,502.01 and France’s CAC increased 50.62 points or 1.15% to 4,439.22.

The Asian markets ended mostly higher on Wednesday, with Japanese stocks leading regional gains, after the Bank of Japan announced an overhaul of its massive monetary stimulus program. Japan's central bank kept its key interest rate unchanged at -0.1 percent and announced substantial changes to its monetary policy framework, including adopting quantitative and qualitative easing with yield curve control across different maturities. The central bank abandoned its monetary base target, but introduced an interest-rate target for 10-year government bonds to achieve its 2 percent inflation target at the earliest possible time. The US Federal Reserve is widely expected to leave interest rates unchanged, but investors will remain focused on the accompanying policy statement and Fed Chair Janet Yellen’s press conference for signs of change in tone about the economy or future rate hikes. Chinese shares ended higher, driven by surge in major steelmakers as investors bet on the next target of government-led restructuring after the disclosure of merger plans between Baoshan Iron and Steel and Wuhan Iron and Steel.