Indian Markets Close Flat

Indian markets witnessed a volatile session today as it opened today's trading session on a firm note. BSE Sensex and NSE-Nifty opened with robust gains of over 200 points and 60 points but soon slipped into the red. However, the broader indices finished today's trading day on a flat note with sensex gaining just 1 point and Nifty losing 0.75 point. Among the sectoral indices, Oil & Gas companies faced maximum losses while banking companies gained a lot of investors' attention. Oil & Gas companies lost over 1.5% while the banking companies gained about 1.2%. BSE Mid Cap stocks closed today's session with gains of 5 points while BSE Small Cap stocks finished today's day with loss of 0.3%.

Commodities continue to trade on a negative note. Gold prices, per 10 grams, fell 0.8% or Rs 211 and are available at Rs 26,590 levels while Silver prices, per kilogram, are down 0.9%. It is available at Rs 38,280 levels, down Rs 332. Crude oil prices extended its losses beyond 2% to 2.4%. Per barrel crude oil is trading at Rs 3180 levels. This is reciprocal effect of the speculation that led investors to believe that strikes of Saudi Arabia and its allies will have no effect on the oil production. The Indian Rupee continues to trade on a flattish note against the US Dollar. US Dollar fell 0.2% or 0.11 against the Indian Rupee. Indian rupee is trading at Rs 62.56 levels against the US Dollar.

European stocks took a breather from the sell-off that occurred in the earlier part of the week. German and French equities are trading with modest gains of 0.11% and 0.31%, respectively. Investors focus is bound to be towards the reforms prepared by Greece's policy makers in an attempt to pull the country out of the crisis.

Oil & Gas companies faced maximum losses during today's trading session. Barring ONGC, all the companies falling under BSE Oil & Gas faced losses. Carin India lost the most, falling by 3%. Last week, the Government of India allowed Gail to import gas so that it could kick-start the gas-based power plants. In lieu of the subsidy provided to import gas, GAIL and Gujarat State Petronet has let go 75% of marketing margin and 50% of transmission rate. GAIL would be the only source of importing and distributing gas all over India while Gujarat State Petronet will take care only of Gujarat. Because of the demand-supply gap, reports suggest that 60% of the power plants are on the threshold of becoming a sick assets while the remaining power plants are likely operating below capacity. Shares of GAIL fell about 0.5%

Indian markets take a breather
03:30 pm

Indian markets continue to trade in a volatile manner. The BSE Sensex is trading with moderate gains of 10 points while NSE-Nifty is trading with slight losses of 4 points. Among the sectoral indices, pharmaceutical sector and oil & gas sector stocks remain the biggest losers; however, banks have gained investor attention in the second half of the trading session. BSE Mid Cap and BSE Small Cap stocks underperformed in today's trading session. While the midcap stocks gained slightly; the smallcap stocks lost nearly 0.2%.

Commodities extended their losses after minting gains for most part of the week. While gold prices, per 10 grams, fell Rs 230 or 0.90%, Silver prices fell over 1% in today's trading session. Gold prices, per 10 grams, is available at Rs 26,570 levels while silver prices, per kilogram, fell about Rs 400 to Rs 38,172 levels. Crude oil prices fell over 2% and per barrel are available at Rs 3,183 levels. The value of US Dollar fell marginally by 0.15% or 0.09. Indian Rupee is available at Rs 62.58 levels against the US Dollar.

Telecom stocks underwent a sell-off in the send half of the trading session as Tata Communications and Idea Cellular fell over 2%. Idea Cellular got listed in the Nifty 50 exchange. Hence gained in the morning session, however, fell prey to the profit booking in the second half. The company invested about Rs 300 bn to acquire 270.7 mhz from the spectrum auction for pan India. The company said that it won 54 mhz from 900 mhz taking the total to 79.4 mhz from the current 9 leadership area it presently covers. This constitutes 73% of the total revenues. The company has also won a fraction from 1800 mhz and 2100 mhz that covers Kolkata and Maharashtra. The company plans to capitalize on the 3G and 4G services to contribute in Digital India. The company plans to make an upfront payment of Rs 77.32 bn and the balance in 10 equal installments in forthcoming 2 years. Shares of company fell over 4% owing to profit booking.

Banking stocks have gained the maximum today. Companies like United Bank of India and Andhra Bank gained more than 2%. India's largest bank, State Bank of India said that it would be diluting its ownership in SBI General Insurance by giving 49% to Insurance Australia Group. This development took place as a result of allowing FDIs in the Insurance sector from 26% to 49%. SBI General Insurance is formed because of a partnership between SBI and Insurance Australia Group. As of now SBI had a 74% stake in SBI general.

Indian Markets Pare Early Gains
01:30 pm

Indian markets pared early gains as BSE-Sensex fell over 100 points and NSE-Nifty fell over 40 points in the mid-sessions. All the sectoral indices turned red apart from the IT sector which is trading with impressive gains of over 1%. FMCG, Healthcare and oil and gas have suffered the maximum losses. S&P BSE Midcap and S&P BSE Smallcap stocks have underperformed. While the midcap stocks fell over 1 %, smallcap stocks fell nearly 0.8% in today's session.

Commodities are trading with slight losses after posting robust gains owing to the war in Yemen. Gold prices, per 10 grams, fell nearly 0.3% or Rs 79 and are available at Rs 26,722 levels. Silver prices, per kilogram, fell 0.33% or Rs 126 and are available at Rs 38, 487 levels. Crude oil prices lost 2% after gaining by nearly 10% this week. Per barrel, crude oil prices fell Rs 65 and are available at Rs 3,188. The Indian rupee against the US Dollar declined about 0.14% or 0.09. Currently, the value of Indian Rupee against the U.S Dollar stands at Rs 62.58.

Capital goods are trading on sidelines between small losses and gains. Welspun Corp and L&T are, however, the top gainers in today's session. Shares of Larsen & Toubro gained over 1% after the company secured Rs 17.11 bn order across various segments. The company said that of the secured order Rs 8.8 bn is attributable towards building factory business while Rs 6.76 bn is attributable towards constructing power transmission and distribution businesses.

Healthcare companies have lost over 1.5% is today's trade. Leading pharma companies such Sun Pharma and Lupin have lost over 1% in the mid-session. Share prices of Cadila Healthcare are trading with slight losses of 0.3%. The company said that it acquired the remaining 50% stake in Zydus BSV, which is owned by Bharat Serums and Vaccines. Post this 50% stake acquisition, Zydus BSV has become a 100% subsidiary of Cadila Healthcare. Zydus BSV deals in manufacturing and selling approved anti-cancer agents on a global basis.

Indian Markets Open in green
09:30 am

International markets pared early losses after the US economy revealed better than expected initial claims data and service PMI. While the number of American filing for unemployment came down by 8,000 from the expected figure, at 282,000 whereas services PMI came in 58.6 compared to expectations of 57.2. European markets, like the US markets, shrugged off losses after investors gained traction owing to better than expected US economy. German equities, which were trading with more than 1.5% loss ended the day with just 0.2% loss.

Asian markets are trading on a mixed note as investors focus on the Japanese economic data. While the retail sales figures fell 1.8% compared to expectations of 1.5%; housing hold spending increased both MoM and YoY. All the other Asian markets are trading with losses. Taiwan and Kospi equity markets are trading with 0.8% and 0.1% losses respectively. However, Japanese, Chinese and Hong Kong stocks are trading on a positive note with gains of 0.5%, 0.3% and 0.13%, respectively.

Indian markets have opened on a positive note. BSE-Sensex is trading with gains of over 100 points while NSE-Nifty is trading up by 30 points. Barring auto sector, almost all the sectoral indices are trading in the green. Maximum gains are witnessed in the IT sector and capital goods sector sector. S&P BSE Midcap and S&P BSE Smallcap stocks are trading with gains of 0.7% and 0.8% respectively.

Commodity prices spiked over 1% as investors grew nervous because of the war prevailing in Yemen. This prompted them to turn their investments towards commodities. The price of gold per 10 grams increased more than 1% is available at Rs 26,810 with gains of Rs 318 while silver prices, too, gained 1.2% and per kilogram is available higher by Rs 455 at Rs 36,613 levels. Crude oil prices shot up by 5% as a result of the ongoing war. Per barrel, the crude oil is available at Rs 3,253. US Dollar opened today's trade with modest gains of 0.1% or 0.06. The value of Indian Rupee is Rs 62.73.

Most of the power stocks are trading in the green. NTPC and Reliance Power have gained the most with over 1% gains. Power major Powergrid Corporation said that it plans to invest over Rs 20 bn on many projects across the country. The project involves installing sub-stations at Delhi which will cost Rs 13.94 bn and will be commissioned in 26 months while Rs 0.7 bn will be invested in the Eastern region and is planned to be commissioned in 24 months. Few investments will parked in Hyderabad and Solapur which involve installing sub-stations. The expected costs are Rs 5.5 bn and Rs 0.5 bn respectively for Hyderabad and Solapur. Shares of the company fell about 0.6% in early trade.

Telecom companies have gained a lot of attention post completion of spectrum auctioning. Shares of Idea and Bharti Airtel are trading above 1% even amidst sell-off. Stock of Airtel gained nearly 1% after the company said that it has invested nearly Rs 291 bn to acquire 111.6 mhz from prime spectrums that included 900 mhz, 1800 mhz and 2100 mhz. While Rs 176 bn was spent in retaining the existing spectrum, the balance Rs 115 bn were spent to acquire new ones. Shares of Airtel gained about 0.6% after such developments.

Can this help India to surpass China's growth?

"If you had the Japanese miracle, the East Asian miracle, the Chinese miracle, an Indian miracle is a tantalizing prospect and quite possible" says former RBI governor S Subbarao, in recent Credit Suisse conference that took place in Hong Kong.

India's comparison has been done quite often with China. Historically, on various parameters, China has triumphed over India. This is particularly true, when we compare the economic growth, infrastructure, manufacturing, exports, and so on. Despite this, it is believed that India will be a faster growing economy than China by 2020. As per an article in Mint, Mr Subbarao believes India can become growth miracle of the 2020s. And in this regard, there are few important aspects which lie in India's favour.

The first is India's stronger demographic dividend. India's younger workforce gives the country advantage over the aging population in China. As per estimates of United Nations, India will have the world's largest labor force by 2030 and during the same period, China's pool of workers aged between 15 and 59 are expected to reduce in size which will be equivalent of losing the combined working populations of the UK and France. India's rising youth population is expected to boost the manufacturing output in the country. Further, the changing demographics have compelled China to move up in the value chain, this is expected to push up the wages too in China. Thus increasing labour costs in China, is believed to benefit India.

We have already seen the Indian government is keen on boosting domestic manufacturing. Prime Minister Narendra Modi is strongly promoting Make in India campaign. The government is also looking forward to change the laws, and is taking initiatives to boost the manufacturing in the country. We also believe that the 'Make in India' campaign will tilt the balance in favour of Indian manufacturers. However, India does have its share of problems though.

Well, there is no denying that India's chronic infrastructure and logistics deficit makes it tough for manufacturing companies to achieve just-in-time production. It, along with the government, will have to work towards ensuring that there is a major overhaul in various laws in keeping with the changes in the economic and industrial landscape. So, it is clear that the 'demographic dividend' is not going to get automatically credited in India's account.

The government still needs to find ways and take solid steps to harness the best of our most valuable resource. Overall, it goes without saying that India has to exploit its full potential. Hence, from a long term perspective, India's growth prospects remain strong. And that will lead to a Megatrend which can unleash huge wealth building opportunities across various sectors.