Equity markets cool off from intra-day’s high

Indian equity markets although sustaining its green territory, have cooled from intra-day’s high point, as cautious start of European markets, seem to have weighed on investor’s sentiment. Although off high, equity markets building on previous session, are currently outperforming the globe, as building hopes of new Finance Minister kick-starting the reform process, have mainly triggered across the board gains. 30 share barometer index of BSE, Sensex, adding over a century of points, is currently trading above the 17500 psychological mark, while 50 share index, Nifty, on NSE is comfortably gyrating above the 5300 crucial mark. The broader indices too have sustained gains and are trading in green with profit of over half a percent. Stocks from Information technology, Auto and Realty counters are supporting the uptrend of the equity markets, while stocks from Oil & Gas, Consumer Durable counters are limiting the up-trend of the bourses. Meanwhile, bout of strength is also coming from infra stocks which are trading optimistic on buzz of Union Cabinet introducing the final version of the much awaited Land Acquisition, Rehabilitation and Resettlement Bill in the monsoon session of Parliament. Hinging with optimism were stocks from Jaiprakash Associates, IVRCL and Jaiprakash Associates. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1346:1069, while 121 shares remained unchanged.

The BSE Sensex is currently trading at 17,526.92, up by 113.96 points or 0.65% after touching a high of 17,549.36 and a low of 17,417.92. There were 26 stocks advancing against 4 declines on the index.

The broader indices continued to trade in fine fettle; the BSE Mid cap index and Small cap index were trading higher by 0.51% each.

The top gainers on the BSE sectoral space were, IT up by 1.47%, TECk up by 1.37%, Auto up by 1.28%, Realty up by 1.16% and Bankex up by 0.89%, while Oil & Gas down by 0.22% and Consumer Durables down 0.01% were top losers on the index.

Tata Motors up by 3.21%, Bajaj Auto up by 1.90%, Jindal Steel up by 1.80%, Gail India and Infosys were up by 1.60% were major gainers on the Sensex, while Hero MotoCorp down by 1.40%, Reliance Industries down by 0.69%, NTPC down by 0.33% and HDFC Bank down by 0.21% were major losers on the index.

Meanwhile, with an intention of cranking up slowing growth engine of Indian economy, newly appointed Finance Minister, P Chidambaram, categorizing fiscal consolidation as its top priority, appointed a new panel to advise the government on fiscal rectitude, besides assuring moderation of inflation in the medium term. However, the former Home Minister, P Chidambaram, in its first speech after being a Finance Minister on August 6, was quick to add that the burden of fiscal correction must be shared, fairly and equitably, by different classes of stakeholders. 

In an attempt to re-gain the confidence of all stakeholders, FM averred that wherever mandatory, the corrective measures will be taken in order to achieve in greater clarity in tax laws, stable tax regime, a non-adversarial tax administration and a fair mechanism for dispute resolution. Further, investor friendly Finance Minister also promised to create an environment suitable for lower interest rates, which could be done by curbing on supply-side inflation, held out hopes for the mutual fund and insurance sectors, and pledged for faster clearances of foreign investment proposals, sensing the long policy inaction on the much awaited diesel and urea prices hike.

Back on the fiscal consolidation track, the new panel, which will consist of Vijay Kelkar, Indira Rajaraman and Sanjiv Misra, all of which are the members of the last Finance Commission, would help the government in formulating the path of fiscal consolidation, a target which is hard to achieve annual target, given that this would be last full-fledged financial exercise before Lok Sabha elections a year later

The S&P CNX Nifty is currently trading at 5,317.20 up by 34.65 points or 0.66% after trading in a range of 5,324.25 and 5,281.65. There were 38 stocks advancing against 11 declining one’s on the index, while 1 stock remained unchanged.

The top gainers on the Nifty were IDFC up by 3.59%, Tata Motors up by 3.19%, HCL Tech up by 2.26%, Axis Bank by 2.21% and Jindal Steel up by 2.03%. While, BPCL down by 1.77%, Hero Moto Co down by 1.35%, Power Grid down by 1.33%, Cairn down by 0.94% and Reliance Industries down by 0.77% were top losers on the index.

Asian indices were trading mixed; Kospi Composite Index held up by 0.05%, Hang Seng index gained 0.09%, Nikkei 225 added 0.88% and Taiwan Weighted inched higher by 0.13%, while Shanghai Composite added 0.05%. On the flip side, Straits Times down by 0.10% and KLSE Composite declined by 0.21% were the lone loser on the index.

European markets went off to a cautious but positive start; FTSE100 and CAC 40 inched higher by 0.09% and 0.38% respectively, while DAX is higher by 0.49%