Markets continue to trade flat in afternoon session

Indian equity benchmarks continue to trade flat in afternoon session amid mixed Asian cues. Though most of sectoral indices on domestic bourses were trading in green, sharp selling witnessed in oil & gas and realty stocks restrained the market gains. Despite the positive macro-economic data, market were trading near neutral line with negative bias as continuing slide in crude oil prices dampened risk appetite. Industrial production for the month of November hit a five month high of 3.8% and CPI inflation recorded at 5% in December below the RBI's 6% target. Meanwhile, the gains in consumer durables and FMCG stocks have provided some support to the major indices. Sector wise, Paints stocks were witnessing firm buying amid falling global crude oil prices. Among blue chip stocks, BHEL was top gainer up by around 1.76%, while ONGC was the top loser trading down by around 2.20%. However, broader indices outperformed the major indices with both mid cap and small cap indices trading up by over 0.40%.

Asian Paints has rallied around 4% to Rs 838 as oil fell 5% to its lowest in nearly six years. Shares of personal products maker Marico has moved higher by around 4% to Rs 331 after huge block deal executed on the counter.

On global front, Asian markets were trading mixed with Hang Seng up by 0.67% and Nikkei 225 down 0.83%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,300 and 27,500 levels respectively. The market breadth on BSE was positive, out of 2,579 stocks traded, 1,422 stocks advanced, while 1,048 stocks declined on the BSE.

The BSE Sensex is currently trading at 27572.12, down by 13.15 points or 0.05% after trading in a range of 27529.60 and 27670.19. There were 17 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.49%, while Small cap index up by 0.41%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.02%, FMCG up by 0.84%, Metal up by 0.40%, Auto up by 0.40% and Capital Goods up by 0.32%. While, Realty down by 0.94%, Oil & Gas down by 0.84%, IT down by 0.31%, TECK down by 0.13% and PSU down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were BHEL was up by 1.76%, Cipla up by 1.31%, Hindalco up by 1.29%, Axis Bank up by 1.07% and Mahindra & Mahindra up by 1.01%. On the flip side, ONGC was down by 2.20%, Infosys down by 1.13%, Hindustan Unilever down by 0.99%, GAIL India down by 0.96% and Tata Power down by 0.81% were the top losers.

Meanwhile, with Indian industrial production in November 2014 growing at the fastest pace in 5 months, Indian Inc has stated that turnaround needs to be made consistent for a longer period and reiterated its call for a interests rate cut as December CPI inflation recorded below the RBI's 6 percent target. Industrial production for the month of November hit a five month high of 3.8%, higher than street’s expected figure of over 2%. CPI inflation recorded at 5% in December below street expected figure of 5.20%.

CII Secretary General Chandrajit Banerjee has asserted that going forward, the incipient signs of revival would transform into a firm recovery especially as there is some progress in investment intentions and business confidence. Highlighting the need of more measures to boost manufacturing, he stated that the government should put in place critical entrepreneur friendly reforms which would enhance investments in the economy. Tax regime should be made transparent, predictable and the pace of reviving stalled projects should be stepped up, possibly with the support of states.

Assocham President Rana Kapoor has stated that turnaround in industrial production during November needs to be made consistent for a longer period with a secular growth in manufacturing. Furthermore, the efforts from the government and the RBI have to continue to unclog several sectors from environmental and other regulatory issues. FICCI President Jyotsna Suri stated that improving factory output is a good sign for economic recovery adding that recent measures taken by the government have improved the business confidence in the economy.

The CNX Nifty is currently trading at 8334.05, up by 11.05 points or 0.13% after trading in a range of 8321.85 and 8356.30. There were 35 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 4.14%, Jindal Steel & Power up by 2.68%, Indusind Bank up by 2.15%, Ultratech Cement up by 2.06% and BHEL up by 1.86%. On the flip side, DLF down by 2.45%, ONGC down by 2.14%, Infosys down by 1.25%, Hindustan Unilever down by 1.20% and Cairn India down by 1.13% were the top losers.

Most of the Asian Markets were trading in red, FTSE Bursa Malaysia KLCI up by 6.8 points or 0.39% to 1,741.88, Shanghai Composite up by 6.96 points or 0.22% to 3,236.28, Jakarta Composite up by 9.17 points or 0.18% to 5,197.10, Taiwan Weighted up by 53.5 points or 0.58% to 9,231.80 and Hang Seng up by 161.05 points or 0.67% to 24,187.51. While, Nikkei 225 down 141.91 points or 0.83% to 17,055.82, Straits Times down 4.94 points or 0.15% to 3,339.95 and KOSPI Index down 3.81 points or 0.2% to 1,917.14