Indian equity indices are trading on depressing note in the afternoon session of trade as nervy investors have suddenly started to square off hefty positions not only from the rate sensitive counters but from the markets at large post the quarter percent point rate hike by Indian central bank, its 10th hike in 16 months. The rate hike came in line with the expectations and investors initially abstained from showing any knee-jerk reaction, taking the frontline indices to the high point of the day. However, sentiments did a sudden U-turn after touching previous closing levels as investors even overlooked the marginal moderation in weekly food inflation numbers. Investors' morale also got pounded by the bleak opening of European stock markets while the Asian counterparts too traded on an extremely disappointing note, thereby giving no upside triggers to the local bourses. The overnight plunge in international crude oil prices too had little impact and investors went for across the board profit booking. While there were no sectoral gainers on the BSE, the information technology, oil and gas and metal counters bore the maximum brunt of selling pressure. Index heavyweight Reliance Industries extended its downtrend for the fourth straight session after being badly battered in the three previous sessions.
Back home, the broader markets drifted in tandem with their larger peers after the RBI announced its aggressive stance against the stubborn inflation as investors resorted to broad based profit booking. The markets plunged on volumes of over Rs 0.76 lakh crore in the early noon session while the turnover for the F&O segment was at over Rs 0.65 lakh crore. The market breadth on the BSE was in favor of declines in the ratio of 1038:1474 while 128 scrips remained unchanged.
The BSE Sensex is currently trading at 18,039.29 down by 92.95 points or 0.51% after trading as high as 18,155.10 and as low as 18,005.82. There were 8 stocks advancing against 22 declines on the index.
The broader indices were trading in line with the benchmark indices; the BSE Mid cap and Small cap indices declined by 0.63% and 0.40% respectively.
The BSE sectoral space there remained no gainers while IT down 1.14%, Oil & Gas down 0.98%, Metal down 0.88%, Teck down 0.85% and Consumer Durables down by 0.85%, were the major losers on the index.
The top gainers on the Sensex were HUL up by 1.42%, SBI up by 1.19%, BHEL up by 0.51%, HDFC up by 0.48% and NTPC up by 0.48%.
On the flip side, Sterlite down by 2.15%, Maruti down by 1.59%, Bajaj down by 1.52%, Wipro down by 1.47% and RIL down by 1.44% were the top losers on the index.
In a study on Second Green Revolution: Role in Transforming Indian Agriculture by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), it was pointed that India's population will touch 1.4 billion by 2020 and hence the agricultural sector must grow by 4 per cent each year to support this huge number.
"Indian agricultural sector needs to be revamped to meet future demand and nutritional security of this huge population. Next green revolution with a focus on holistic development of agri sector is imperative to support small, marginal farmers in sustaining their livelihood," said Dilip Modi, president, Assocham.
The study has suggested Innovations in technology, investments in R&D and revamping of the PDS (Public Distribution System).It has further suggested that investments, particularly in research and development (R&D), would enhance agricultural growth by a great extent and provide over 50 per cent return in research and extension process. In its other suggestions, the report has stated that the cropping pattern also needed to undergo transformation and to ensure nutritionally- oriented cropping pattern and production technologies.
Investments in agricultural research and development process can be increased through Public-Private Partnership (PPP) model. A cost-sharing strategy can help minimize the financial woes of R&D in agri sector and encourage various stakeholders like local government, private sector to conduct agricultural research programs to inform and educate small-marginal, poor farmers about good production, says the study.
Such a mechanism would result in enhancing production of goods, services and technologies which cannot be produced alone by either of the sectors. PPP would effectively utilize global resources for development of sustainable agri system across India and good researchers for solving agricultural related problems, further points out the study.
In its action plan, Assocham will engage with various State governments to implement a 10-point Action Plan it has prepared to revolutionise agricultural sector in the country. It calls for a dedicated Agriculture Budget and a one-nation-one-market regime to encourage farmers. The chambers would emphasise on 'Soil-to-crop-to-market' in order increase productivity and marketability of farm produce.
The S&P CNX Nifty is currently trading at 5,410.90, lower by 36.60 points or 0.67% after trading as high as 5,447.50 and as low as 5,404.40. There were 11 stocks advancing against 39 declines on the index.
The top gainers of the Nifty were HUL up by 1.44%, SBI up by 0.74%, Sun Pharma up by 0.65%, R Capital up by 0.62% and BPCL up by 0.62%.
Ambuja Cement down by 3.22%, IDFC down by 2.68%, Sterlite down by 2.55%, Grasim down by 2.17%, and ACC down 2.10% were the major losers on the index.
Most Asian markets got butchered in the session as Shanghai Composite plunged 1.50%, Hang Seng plummeted 1.70%, Jakarta Composite got pounded by 1.77%, KLSE Composite declined 0.33%, Nikkei 225 shaved off 1.70%, Straits Times sank 1.16%, Seoul Composite got pulverized by 1.91% and Taiwan Weighted got battered by 2%.
The European markets have opened on a bleak note as the France's CAC 40 slipped 1.27%, Germany's DAX eased 1.25% and London's FTSE shed 1.04%.
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