Markets come off day’s high; overlook five year low Oct WPI data

Local equity markets, largely overlooking five year low October WPI data, were trading off day’s high on investors’ reluctance to pour money into equities on last trading session of the week. Nevertheless, the sentiment remained largely positive as pull-back of Asian markets from day's low and decline in crude oil prices were providing support to the markets. Both, Sensex and Nifty were trading shy of the crucial 28,000 and 8,380 levels respectively, with gains of around two tenths of a percent. However, broader indices continuing to witness hectic buying activities were trading in the range of 0.70%-0.85%.
 
On the global front, Asian markets were trading mixed after Japanese shares led gains to hit at a fresh seven-year high. However, soft Chinese data continued to weigh on the sentiment. China's economy lost further momentum in October, with factory growth dipping and investment growth hitting a near 13-year low.

Closer home, almost all the sectoral indices on BSE were trading into positive territory, with an exception from Healthcare counters. However stocks from Metal, Realty and PSU counters were the top gainers of the session. Meanwhile, banking stocks were also in demand on renewed hopes of rate cut in RBI’s monetary policy review in December after India's main inflation gauge, based on monthly WPI, stood at 1.77% for the month of October as compared to 2.38% in the previous month and 7.24% during the corresponding month of the previous year. The overall market breadth on BSE is in the favour of advances which thumped advances in the ratio of 1530:1217; while 90 shares remained unchanged.

The BSE Sensex is currently trading at 27988.37, up by 47.73 points or 0.17% after trading in a range of 27912.90 and 28044.81. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.70%, while Small cap index up by 0.82%.

The gaining sectoral indices on the BSE were Metal up by 2.03%, Realty up by 1.71%, PSU up by 1.28%, Oil & Gas up by 1.13% and Auto up by 0.89%. On the flip side, Healthcare down by 0.91% was the sole loser on the index.

The top gainers on the Sensex were GAIL India up by 2.69%, Coal India up by 2.17%, Tata Steel up by 2.00%, ONGC up by 1.95% and Hindalco up by 1.88%. On the flip side, Cipla down by 2.72%, Tata Power down by 2.42%, Sun Pharma Inds. down by 1.80%, Dr. Reddys Lab down by 1.75% and HDFC down by 1.64% were the top losers.

Meanwhile, in a move, which is likely to increase the cost of electricity bills for consumers in national capital, Delhi Electricity Regulatory Commission (DERC) approved the Power Purchase Cost Adjustment charge (PPAC) under which power tariff was hiked by up to 7%. The regulator, who will review the surcharge again in February, has hiked the tariff to help the power distribution companies to recover their power purchase cost.

The DERC approved a hike of 7% for BSES Yamuna Power (BYPL), 4.5% for BSES Rajdhani Power (BRPL) and 2.5% for Tata Power. BRPL supplies electricity of south and west Delhi, while Tata Power supplies it to north Delhi and BYPL supplies to east and central Delhi.

While hiking the power tariff by up to 7.5% for domestic consumers, the DERC in July had withdrawn Power Purchase Adjustment Cost (PPAC) of around 8% till October. The regulator had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices. However, its withdrawal had resulted into marginal decline of tariff for the consumers, whose monthly consumption does-not exceed 400 units.

Delhi has seen series of hike in power tariff in the past two years. The tariff was hiked by 22% in 2011, followed by 5% hike in February 2012. The tariff was increased by up-to to 2% in May, 2012 and again by 26% for domestic consumers in July, 2012. It was hiked by up to three percent in February last year and again by 5% in August.

The CNX Nifty is currently trading at 8371.10, up by 13.25 points or 0.16% after trading in a range of 8346.80 and 8389.70. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.87%, Asian Paints up by 2.40%, Coal India up by 2.36%, Jindal Steel & Power up by 2.33% and Hindalco up by 1.94%. On the flip side, Cipla down by 2.44%, Tata Power down by 2.14%, Sun Pharma Inds. down by 2.01%, Dr. Reddys Lab down by 1.70% and HDFC down by 1.60% were the top losers.

Asian markets were trading mixed; with Taiwan Weighted up by 2.21 points or 0.02% to 8,982.88; Straits Times inched up by 2.92 points or 0.09% to 3,307.85; Hang Seng gained 40.47 points or 0.17% to 24,060.41 and Nikkei 225 advanced by 98.04 points or 0.56% to 17,490.83. On the flip side, KOSPI Index declined by 15.37 points or 0.78% to 1,945.14;  Shanghai Composite slid by 8.11 points or 0.33% to 2,477.50; FTSE Bursa Malaysia KLCI shed 4.74 points or 0.26% to 1,811.07 and Jakarta Composite inched lower by 4.73 points or 0.09% to 5,043.94.