Markets trade almost flat but with positive bias

Indian equity benchmarks were trading almost flat but with a positive bias in late morning session after touching record high level at the opening. Though, the markets pared most of their earlier gains due to mixed global cues coupled with selling in Capital Goods, Industrials and Energy stocks, investors’ sentiments remained optimistic with commerce and industry minister Nirmala Sitharaman’s statement that Foreign Direct Investment (FDI) inflows into the country increased 23 percent in the first two months of the current fiscal from a year ago. Some support also came with Finance Minister Arun Jaitley’s statement that series of steps taken by the government are intended to widen the tax base, eliminate corruption and incentivise the honest tax payers. Meanwhile, markets regulator Sebi has notified stricter participatory notes (P-Notes) norms stipulating a fee of USD 1,000 that will be levied on each instrument to check any misuse for channelising black money.

On the global front, Asian markets were trading mixed as markets awaited the upcoming Federal Market Open Committee (FOMC) meeting and kept an eye on the dollar amid greater uncertainty over the White House's ability to pass key policy proposals.

Back home, in scrip specific development, Ratnamani Metals & Tubes was trading higher after the company bagged two new orders for supply of HSAW Pipes aggregating to Rs 339.00 crore for approximately Rs 214.00 crore and Rs 125.00 crore which will be completed by March 2018 and April 2018 respectively.

The BSE Sensex is currently trading at 32261.53, up by 15.66 points or 0.05% after trading in a range of 32209.68 and 32374.30. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.32%, while Small cap index up by 0.06%.

The top gaining sectoral indices on the BSE were Telecom up by 1.41%, Metal up by 0.51%, Bankex up by 0.44%, Basic Materials up by 0.38% and TECK up by 0.28%, while Capital Goods down by 0.65%, Industrials down by 0.51%, Energy down by 0.25%, Auto down by 0.21% and Healthcare down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.25%, Hero MotoCorp up by 1.14%, HDFC Bank up by 0.77%, Tata Steel up by 0.74% and TCS up by 0.63%. On the flip side, Tata Motors - DVR down by 1.50%, Tata Motors down by 1.47%, Larsen & Toubro down by 0.94%, Lupin down by 0.70% and ONGC down by 0.67% were the top losers.

Meanwhile, with an aim to push India’s economic growth at a rapid pace, government think tank Niti Aayog has made a strong case for boosting investments and savings. The Aayog has stressed on sustaining macro-economic stability in its appraisal of the Twelfth Five Year Plan (2012-17). The document noted that lower savings and investment rates are still a major cause of worry. Therefore, it pointed out that the strong and dedicated efforts in terms of appropriate policy interventions in a time-bound manner are needed in order to boost savings and investment in the economy.

The document has further clarified that the policy interventions should be focus on the key drivers of progress such as boosting investment, skill formation and creating the appropriate environment. Asserting that a stable and predictable tax regime is a precondition for sustained high levels of Investment, hence it said that prime importance should be given to boosting investors’ sentiments positively so as to reap the benefits of high foreign investment of a long-term and stable nature. Admitting that Inflation management is another essential area to accelerate growth, the document said a greater focus should be placed on management of price levels.

It also mentioned that there should be effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. On the Goods and Services Tax (GST) front, the document noted that the move will help in increased compliance, boost tax revenues, reduce the tax outflow in the hands of the consumers and make exports competitive. It also said that the implementation of new tax regime is likely to push India's gross domestic product (GDP) by 1-2 percent.

The CNX Nifty is currently trading at 9969.10, up by 2.70 points or 0.03% after trading in a range of 9954.70 and 10011.30. There were 24 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 2.48%, Bharti Infratel up by 2.23%, Vedanta up by 1.76%, Hero MotoCorp up by 1.26% and Axis Bank up by 1.16%. On the flip side, Zee Entertainment down by 1.71%, Eicher Motors down by 1.70%, HCL Tech down by 1.70%, Tata Motors down by 1.53% and Tata Motors - DVR down by 1.30% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 0.5 points or 0.03% to 1,762.49, Shanghai Composite increased 0.59 points or 0.02% to 3,251.18 and Taiwan Weighted increased 7.89 points or 0.08% to 10,469.17.

On the flip side, Jakarta Composite decreased 14.83 points or 0.26% to 5,786.75, Hang Seng decreased 11.93 points or 0.04% to 26,834.90, KOSPI Index decreased 9.33 points or 0.38% to 2,442.20 and Nikkei 225 decreased 5.21 points or 0.03% to 19,970.46.