Markets turn flat in late afternoon session

Indian equity benchmarks pared most of their gains to turn flat in late afternoon session on account of selling pressure in banking and FMCG stocks. Though, markets managed to keep their head above water with 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. On the global front, European markets were trading in green 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, railway stocks edge higher after the Cabinet approves merging of Rail budget with Union Budget. Finance Minister Arun Jaitley said that there will be only one Budget- the general Budget and all proposals on the railways will be included in it. Stocks related to infra sector remained on buyers’ radar, as the government has announced the names of 27 more cities that will be developed under the center's ‘Smart City Mission’.

The BSE Sensex is currently trading at 28565.61, up by 42.41 points or 0.15% after trading in a range of 28529.93 and 28689.36. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.17%, while Small cap index was up by 0.47%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.89%, Metal up by 0.77%, Auto up by 0.61%, Realty up by 0.44% and TECK up by 0.33%, while FMCG down by 0.20%, PSU down by 0.09% and Oil & Gas down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 1.29%, GAIL India up by 1.19%, Tata Motors up by 0.99%, Tata Steel up by 0.97% and Axis Bank up by 0.78%. On the flip side, Power Grid down by 1.12%, ONGC down by 0.78%, ICICI Bank down by 0.77%, SBI down by 0.59% and ITC down by 0.53% were the top losers.

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 is currently trading at 8789.20, up by 13.30 points or 0.15% after trading in a range of 8778.40 and 8826.85. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.43%, Bharti Infratel up by 2.96%, Eicher Motors up by 2.24%, Bajaj Auto up by 1.40% and GAIL India up by 1.34%. On the flip side, Power Grid down by 1.26%, ONGC down by 1.13%, ICICI Bank down by 0.79%, SBI down by 0.73% and Ultratech Cement down by 0.73% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 1.42 points or 0.09% to 1,657.20, Shanghai Composite was up by 2.88 points or 0.1% to 3,025.87, KOSPI Index rose 10.28 points or 0.51% to 2,035.99, Jakarta Composite surged 32.09 points or 0.61% to 5,334.58, Taiwan Weighted increased 66.92 points or 0.73% to 9,228.50, Hang Seng increased 139.04 points or 0.59% to 23,669.90 and Nikkei 225 increased 315.47 points or 1.91% to 16,807.62.

European markets were trading in green; UK’s FTSE 100 increased 31.46 points or 0.46% to 6,862.25, France’s CAC surged 46.84 points or 1.07% to 4,435.44 and Germany’s DAX jumped 96.41 points or 0.93% to 10,490.27.