Benchmarks trade firm at highest point of the day

Indian equity benchmarks continued their firm trade hovering near the highest point of the day in the late morning session on account of buying in frontline blue chip counters. The sentiments were on optimistic note as RBI Governor Urjit Patel signaled a marked departure in policy approach from his predecessor’s unwavering focus on price stability. He said that ‘The NPA situation is an important issue for the RBI in India. We will be dealing with it with firmness but also with pragmatism so that the economy does not feel any lack of credit’. Some additional buying crept in on reports that foreign institutional investors bought cash shares worth Rs 243 crore on Wednesday, while domestic institutional investors were net sellers to the tune of Rs 350 crore. Investors however took cautions approach on International Monetary Fund (IMF) report which noted that countries such as India have taken steps to reduce non-performing loans, but stressed that additional and more timely actions is needed. The comments, included in its latest Global Financial Stability Report released also called for improved policies to manage corporate distress. The IMF report warned of rising medium-term risks and said global financial stability will now depend on how well financial institutions adapt to the new era of low growth and low interest rates. Traders were seen piling up positions in Oil & Gas, PSU and Capital Goods stocks, while selling was witnessed in IT and TECK sector stocks. In scrip specific development, Yes Bank was trading under pressure after India’s capital markets regulator has found reason enough to launch adjudication proceedings against the bank and its investment bankers over its abortive $1 billion fund-raising effort last month. Jindal Steel & Power (JSPL) was trading in red after the debt-ridden company defaulted on interest payment to bondholders that were due on September 30. The non-convertible debentures (NCDs) had a coupon rate of 9.8 percent with about two 10-year maturities.

On the global front, Asian stocks were trading mostly higher, thanks to stronger US economic data, while growing prospects of a near-term US rate hike and possible tapering of stimulus in Europe hit gold and lifted the dollar to one-month highs versus the yen. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,750 and 28,300 levels respectively. The market breadth on BSE was positive in the ratio of 1509:752, while 108 scrips remained unchanged.

The BSE Sensex is currently trading at 28312.45, up by 91.47 points or 0.32% after trading in a range of 28238.09 and 28326.73. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.12%, PSU up by 1.20%, Capital Goods up by 0.82%, Realty up by 0.75% and Consumer Durables up by 0.59%, while IT down by 0.49% and TECK down by 0.34% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 2.58%, Reliance Industries up by 2.19%, ONGC up by 2.14%, Hindustan Unilever up by 1.12% and Asian Paints up by 0.75%.

On the flip side, Infosys down by 0.76%, Axis Bank down by 0.69%, Coal India down by 0.50%, Dr. Reddy’s Lab down by 0.33% and Wipro down by 0.25% were the top losers.

Meanwhile, the Union Cabinet has given its approval for the signing of Memorandum of Understanding (MoU) between India and African-Asian Rural Development Organisation (AARDO) for capacity building programmes in the field of rural development.

Under the MoU for the triennium 2015-2017 capacity building programmes for AARDO member countries will be organized every year at various institutions such as National Institute of Rural Development & Panchayati Raj (NIRD & PR), Indian Council of Agricultural Research (ICAR), Indian Institutes of Management (IIMs) among others.

The duration of each training programme will be of two to three weeks. The Post Graduate Diploma in Rural Development Management Course at NIRD & PR under this scheme is for one year.

AARDO currently has 31 countries of the African-Asian region under its fold. India is one of the Founder Members of the Organization and is the largest contributor in terms of membership contribution of $ 141,100 apart from contributing by way of providing 70 fully paid training scholarships for Human Resource Development Programme under the Indian Technical & Economic Cooperation Programme (ITEC) to the Organization.

The CNX Nifty is currently trading at 8773.70, up by 29.75 points or 0.34% after trading in a range of 8741.35 and 8774.80. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were BPCL up by 4.42%, GAIL India up by 2.66%, Aurobindo Pharma up by 2.46%, Bosch up by 2.37% and Reliance Industries up by 2.28%.

On the flip side, HCL Tech down by 1.89%, Yes Bank down by 1.09%, Infosys down by 0.78%, Axis Bank down by 0.74% and Ultratech Cement down by 0.67% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 3.77 points or 0.23% to 1,666.69, Taiwan Weighted increased 5.48 points or 0.06% to 9,277.76, KOSPI Index increased 9.81 points or 0.48% to 2,062.81, Nikkei 225 increased 102.73 points or 0.61% to 16,921.97 and Hang Seng increased 146.05 points or 0.61% to 23,934.36.

On the other hand, Jakarta Composite decreased 6.28 points or 0.12% to 5,414.37. China stock exchange was closed on account of ‘National Day’ holiday.