Benchmarks pare gains but trade continues in green

After hovering near highest point of the day, Indian equity benchmarks pared some gains ahead of F&O expiry but continued to trade in fine fettle in late afternoon session. Positive trend in global markets buoyed investors' sentiments. Traders remained optimistic with Union minister M Venkaiah Naidu’s statement that several views have been presented on demonetisation, it may have caused initial discomfort or loss to public but will reap benefits in longer run. He added that it is like a bitter pill for long term ill. On sectoral front, select banking stocks were trading higher with the Deputy Governor Viral Acharya's statement that in order to decisively deal with the banking system's stressed assets, which have doubled from 2013, the Reserve Bank of India is examining a plan involving two models - a Private Asset Management Company (PAMC) and a National Asset Management Company (NAMC). Some support also come with a private report stating that India’s millennial population is a massive disruptive force and driven by the supportive demographics along with government's policy action, Indian economy is likely to reach $5 trillion by 2025.

On global front, European markets were trading in green following firm cues from Wall Street and Asia. Asian markets were trading in green, although gains remained capped due to caution ahead of the Fed's latest meeting minutes due out later in the day. Back home, in scrip specific development, Vijaya Bank traded higher after Small Industries Development Bank of India (SIDBI) signed a Memorandum of Understanding (MoU) with Vijaya Bank for providing concessional finance to micro and small enterprises (MSEs).

The BSE Sensex is currently trading at 28871.26, up by 109.67 points or 0.38% after trading in a range of 28789.30 and 28963.52. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.60%, while Small cap index was down by 0.39%.

The top gaining sectoral indices on the BSE were Energy up by 4.26%, Oil & Gas up by 1.80%, Realty up by 0.34%, Bankex up by 0.31% and Telecom up by 0.18%, while IT down by 1.60%, TECK down by 1.33%, Utilities down by 1.07%, Consumer Durables down by 1.02% and Power down by 1.00% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 9.84%, Axis Bank up by 3.27%, Coal India up by 2.88%, Asian Paints up by 1.45% and SBI up by 0.76%. On the flip side, NTPC down by 2.55%, Infosys down by 2.33%, Power Grid down by 2.16%, TCS down by 1.94% and Tata Steel down by 1.64% were the top losers.

Meanwhile, appreciating corporate philanthropy concept, Union Finance Minister Arun Jaitley has said an idea of mandatory corporate social responsibility (CSR) which was initially lesser known in India has taken off well and it will help to achieve government’s objective of doubling the income of those living in rural areas, which the government due to limited resources, cannot achieve on its own and therefore civil society has an important role in it.

Further he said that through the CSR, an institutionalised mechanism has been put in place by which some money has to be spent on the rural India, and mentioned that a few years ago when the idea of CSR was introduced in 2013, it was not free from doubt. There was some resistance as corporate world felt that this was an additional tax which was being imposed on them, but it has begun well as an institutionalised mechanism.

Though, Jaitley pointed that the role of non-governmental organisations in rural India continue to lag, which otherwise should get a boost from assistance provided by CSR activities. He also urged corporates to adopt an arm's length approach while taking up CSR activities and not pursue proposals to subserve their own ends.

The CNX Nifty is currently trading at 8924.15, up by 16.30 points or 0.18% after trading in a range of 8905.25 and 8960.75. There were 19 stocks advancing against 31 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Reliance Industries up by 9.74%, Axis Bank up by 3.50%, Coal India up by 3.00%, Bharti Infratel up by 2.03% and Tata Motors - DVR up by 1.88%. On the flip side, NTPC down by 2.87%, Infosys down by 2.50%, Grasim Industries down by 2.49%, Power Grid down by 2.40% and TCS down by 2.04% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 3.68 points or 0.17% to 2,106.61, Jakarta Composite increased 6 points or 0.11% to 5,346.99, Shanghai Composite increased 7.89 points or 0.24% to 3,261.22, Taiwan Weighted increased 14.85 points or 0.15% to 9,778.78 and Hang Seng increased 238.33 points or 0.99% to 24,201.96. On the flip side, Nikkei 225 decreased 1.57 points or 0.01% to 19,379.87 and FTSE Bursa Malaysia KLCI decreased 1.5 points or 0.09% to 1,705.05.

All European markets were trading in green; UK’s FTSE 100 increased 23.67 points or 0.33% to 7,298.50, France’s CAC increased 31.54 points or 0.65% to 4,920.30 and Germany’s DAX increased 53.28 points or 0.45% to 12,020.77.