BACK ON TRACK

Markets continue to trade recovering from a sudden fall after the RBI's mid quarterly policy announcements. Though, sudden selling appeared in the markets from the optimistic participants at the high points of the day, who were expecting the central bank to put a pause on its rate hike stint. But RBI continued its hawkish tone, and hiked the repo rate by 25 basis points (bps) to 8.25%. The 25 basis points hike was on expected line and the markets has already priced in the development so recovery followed soon and the markets returned to jubilant mood giving company to the other global markets. RBI after the current macroeconomic assessment decided to go for its 12th rate hike in last 18 month. The RBI noted that developments in the global economy over the past few weeks are a matter of serious concern and at domestic front, even as many indicators point to moderating growth, both headline and non-food manufactured products inflation are at uncomfortably high levels, prompting to persevere with the current anti-inflationary stance by another rate hike. Back on street, after the momentous fall the business on street has returned to normal and with PSU, Auto, CG, and Power taking the lead, while ONGC remains in euphoric mood after its FPO was deferred for a month.
The BSE Sensex is currently trading at 16,954.65, up by 78.11 points or 0.46%. The index has touched a high and low of 17,122.54 and 16,889.58 respectively.  There were 18 stocks advancing against just 12 declining ones on the index.
The broader indices were trading mixed; the BSE Mid cap index up by 0.04% and Small cap index down by 0.03% respectively.
The top gaining sectoral indices on the BSE were PSU up by 1.24%, Auto up by 0.96%, Power up by 0.78%, Oil and Gas up by 0.78%, Metal up by 0.77%. While, FMCG down by 0.32%, TECk down by 0.14%, Bankex down by 0.12%, Realty down by 0.07%, CD down by 0.04% was the top losers on the on the BSE sectoral front.
The top gainers on the Sensex were ONGC up by 5.31%, Tata Motors up by 4.60%, Sterlite Industries up by 3.54%, Tata Power up by 2.41% and NTPC up by 2.34%.
On the flip side, Jaiprakash Association down by 1.43%, HUL down by 0.84%, Bharti Airtel down by 0.80%, HDFC Bank down by 0.75% and Infosys down by 0.45% were the top losers on the Sensex.
Meanwhile, the Union Cabinet, on September 15, refused to approve much awaited National Manufacturing Policy (NMP), which aims at creating over 220 million jobs in the next 15 years, because of last minute objections by the labour and environment ministries over the flexibilities in green and labour laws for proposed units in industrial zones. The policy has been referred to the group of ministers (GoM) which will try to resolve the differences.
Earlier in this month, the Commerce and Industry Minister Anand Sharma had announced that the manufacturing policy will be in place within few weeks, however, due to recent move of Union Cabinet it is less like to happen. As per the Department of Industrial Policy and Promotion (DIPP) official, there are still some areas of differences that remain between the DIPP and the labour ministry on applicability of labour laws which the GoM will have to sort out.
In a communication to DIPP, the Environment Minister Jayanthi Natarajan and Labour Minister Mallikarjun Kharge both expressed their objections. The Labour Ministry specifically expressed their objection on the recommendation of service entity for small and medium enterprises for taking care of labour-related matters, such as providing funds, on argued that the statutory functions can't be outsourced.
On the other hand, the Environment Ministry opposed the inclusion of state pollution board official in the SPV to be created to carry out environment impact assessments as ministry felt it would lead to center and state conflict.
Earlier, the Labour Ministry has opposed the proposed draft manufacturing policy as it had proposed flexibilities on application of labour laws on units in the industrial zones, which includes easier hiring and firing norms and outsourcing of inspections to private players. The environment ministry also had opposed the recommendation of giving faster environment clearance to units in the industrial zones.
The all ministries later said that the issues had been resolved with the labour ministry claiming that the DIPP had accepted the view that there couldn't be two set of labour laws in the country.
The S&P CNX Nifty is currently trading at 5,087.50, higher by 11.80 points or 0.23%. The index has touched a high and low of 5,143.60 and 5,068.10 respectively. There were 20 stocks advancing against 30 declines on the index.
The top gainers of the Nifty were ONGC up by 4.93%, Tata Motors up by 4.60%, Sterlite Industries up by 3.31%, Tata Power up by 2.74% and NTPC up by 2.22%.

On the flip side, HCL Tech down by 2.13%, JP Associate down by 1.58%, Kotak Bank down by 1.33% RCom down by 1.30% and Reliance Capital down by 1.23% were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up by 0.09%, Hang Seng up by 1.78%, Jakarta Composite was up by 1.08%, Nikkei 225 up by 2.25%, Straits Times up by 1.08%, Seoul Composite was up by 3.72% and Taiwan Weighted up by 2.60%.The European indices have got off to a positive start, CAC 40 advanced 1.10%.