Indian equities exhibit volatile trade; Realty, Auto lead

Indian benchmarks erased most of the morning gains and are exhibiting a volatile trend in the late morning session. On the global front, the Asian counters were trading on mixed at this point of time. Japanese Nikkei share average climbed about a percent to 32-month high on Tuesday, driving the benchmark further into overbought territory, as persistent weakness in the yen boosted demand for exporters’ shares. The traders were seen piling up position in Realty, Auto and Capital Goods while selling was seen in Metal. In scrip specific development, Tata Consultancy Services surged after posting better-than-expected third quarter results on Monday. Private sector lender Yes Bank soared on reporting that the bank is in talks to buy Indian retail assets of RBS. HCL Infosystems jumped after the company stated that its board of directors has approved the business restructuring option recommended by the Finance Committee. Crompton Greaves was trading in green after the company inked a Memorandum of Understanding with the Government of Gujarat to set up a state-of-the-art power transformer manufacturing unit. Mahindra & Mahindra zoomed after the company increased production capacities of its three best selling brands due to the overwhelming demand across the country. SpiceJet climbed on the buzz of airline’s stake sale plan to the foreign carriers, including potentially Qatar Airways. The NSE Nifty and BSE Sensex were managing to hold their psychological 6,000 and 1950 levels respectively. The market breadth on BSE was negative; advances: declines in the ratio of1236:885.

The BSE Sensex is currently trading at 19923.86 up by 17.45 points or 0.09% after trading in a range of 20007.09 and 19907.85. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.41% and Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were, Realty up by 1.16%, Auto up by 0.68%, Capital Goods up by 0.64%, TECk up by 0.39% and IT up by 0.27%. While, Metal down by 0.25% was the sole loser on the index.

The top gainers on the Sensex were TCS up by 1.79%, Bharti Airtel up by 1.55%, Tata Motors up by 1.25%, Bajaj Auto up by 1.11% and Gail India up by 0.96%.

On the flip side, Sterlite Industries  was down by 1.40%, Hindustan Unilever was down by 1.31%, Jindal Steel was down by 1.00%, Hero Moto Corp was down by 0.98% and Coal India was down by 0.62% were the top losers on the Sensex.

Meanwhile, the Government, to allay fears of foreign investors and boost sagging FDI inflows, has once again put off the implementation of the unpopular General Anti-Avoidance Rules (GAAR) by two more years. “Postponement of the implementation of the GAAR for a further two years will help improve the investment climate”, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.

The government will introduce an amendment to income-tax law to give statutory effect to the latest decisions that seek to modify the proposed tax regime. After this, new rules will be announced for implementation of GAAR. 

Earlier, Montek has said that investment inflows are a key to reduce the fiscal deficit, which in turn will help sustainable growth and development. “Investments inflow has significantly declined by about three percentage points since 2007-08 in the aftermath of the global economic crisis. We need to reverse this trend to achieve high economic growth and for this we need fixed investment of 35 per cent by the end of the Plan period from the level of 34 per cent in 2007-08,” he added. Further, listed the areas of the economy where radical rethinking was needed for 12th Plan’s effective impact and for the country to become the third largest economy of the world behind China and the US by 2030. 

The S&P CNX Nifty is currently trading at 6,030.80 up by 6.75 points or 0.11% after trading in a range of 6,044.60 and 6,023.20. There were 28 stocks advancing against 22 declines on the index.

The top gainers of the Nifty were Ambuja Cement up by 3.34%, Bharti Airtel up by 1.89%, TCS up by 1.71%, BPCL up by 1.70% and Ultra Cement up by 1.54%.

On the flip side, Kotak Bank down by 1.61%, Sesa Goa down by 1.42%, Hindustan Unilever down by 1.22%, Asian Paint down by 1.10% and Jindal Steel down by 1.09%, were the major losers on the index.

The Asian equity indices were trading on mixed; Hang Seng declined 60.86 points or 0.26% to 23,352.40, Straits Times dropped 21.27points or 0.66% to 3,185.32, KOSPI Composite decreased 15.98 points or 0.80% to 1,990.63 and Taiwan Weighted was down by 67.51 points or 0.85% to 7,757.30.

On the flip side, Shanghai Composite surged 9.81 points or 0.42% to 2,321.55, KLSE Composite rose 1.37 points or 0.08% to 1,686.00, Nikkei 225 was up by 82.10 points or 0.76% to 10,881.18, Jakarta Composite rose 9.16 points or 0.21% to 4,391.66.