Markets despite recovery attempt continue to trade in red

Markets are slowly inching towards green in the noon trade, though cautiousness still persist and traders are lacking confidence with no major supportive cues from the domestic front. All the good lead given by the global markets in early deals have got washed away. Traders have even ignored the report that growth among India’s services firms picked up pace in January. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 52.4 in January from 51.1 in December. It has been above 50 level, which denotes growth. Indian services companies reported sustained growth of new business in January, extending the current sequence of expansion to nine months. Also, the headline HSBC India Composite PMI Output Index signaled further growth of private sector output in January to 53.3 from 52.9. Back on street, weakness was being witnessed in the banking, capital goods, power and auto stocks, while some support was coming from metal, healthcare and consumer durables along with realty.Broader indices were were slightly in better position than the benchmarks and were currently trading in green.

The BSE Sensex is currently trading at 28993.07, down by 7.07 points or 0.02% after trading in a range of 28867.00 and 29133.62. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were modestly trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index gained 0.30%.

The gaining sectoral indices on the BSE were Metal up by 1.69%, Realty up by 1.33%, Oil & Gas up by 0.80%, PSU up by 0.26%, Consumer Durables up by 0.14% while, Capital Goods down by 0.94%, Power down by 0.72%, Bankex down by 0.70%, Auto down by 0.67%, TECK down by 0.15% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 2.56%, ONGC up by 2.28%, Tata Steel up by 2.06%, Sun Pharma Inds. up by 1.98% and Hindalco up by 1.74%. On the flip side, Axis Bank down by 4.08%, BHEL down by 2.44%, TCS down by 1.77%, Tata Motors down by 1.54% and SBI down by 1.43% were the top losers.

Meanwhile, recovering from last month’s fall, the HSBC India Services PMI Business Activity Index-tracking changes in activity at Indian services companies on a month-by-month basis, came at 52.4 in January, up from 51.1 in December, signaling a solid expansion in business activity. It has been above 50 level since May 2014, which denotes growth.

The new business sub-index - which measures demand - climbed to 52.1 from 51.8. The survey also showed firms' confidence regarding future business grew at the fastest pace since June last year. Based on survey responses, the latest increase in activity reflected further growth of new business during the month. Among the monitored sub-sectors, activity rose quickest in ‘Other Services’, while the sharpest reduction occurred in Financial Intermediation. The composite output of the private sector, comprising both manufacturing and services, signaling further growth of private sector output in January, extended the current sequence of expansion to nine months to 53.3 from 52.9. Manufacturing output continued to rise faster than service sector activity at the start of 2015.

Volumes of work-in-hand at Indian service providers increased for the fourth month running in January, while input costs faced by Indian services firms rose for the second straight month in January, having fallen for the first time in more than five-and-a-half years in November. Similarly, private sector input costs increased at the quickest pace since August, contrasting with weaker cost pressures at goods producers. However, despite solid growth of activity and new business, payroll numbers in the Indian service sector rose only fractionally in January. Moreover, the rate of job creation was slower than the historical average. Staffing also increased marginally at goods producers and across the private sector overall.

The most important fact was that the Indian service providers were the most upbeat regarding the 12-month outlook for activity since mid-2014 in January. Private sector new business expanded for ninth straight month and Business sentiment led by anticipated improvements in demand and new commercial initiatives, rose to a seven- month high.

The CNX Nifty is currently trading at 8753.40, down by 3.15 points or 0.04% after trading in a range of 8716.40 and 8792.85. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 4.69%, Sesa Sterlite up by 2.52%, ONGC up by 2.24%, Sun Pharma Inds. up by 2.19% and Jindal Steel & Power up by 2.07%. On the flip side, Axis Bank down by 4.13%, BHEL down by 2.54%, Zee Entertainment down by 2.31%, TCS down by 1.89% and Tata Motors down by 1.70% were the top losers.

All the major Asian markets were trading in green, KOSPI Index was up by 10.83 points or 0.55% to 1,962.79, Straits Times gained13.66 points or 0.4% to 3,421.68, FTSE Bursa Malaysia KLCI was higher by 23.5 points or 1.32% to 1,804.76, Jakarta Composite gained 31.55 points or 0.6% to 5,323.27, Taiwan Weighted was up by 65.19 points or 0.69% to 9,513.92,  Hang Seng surged by 125.51 points or 0.51% to 24,680.29, Nikkei 225 was up by 342.89 points or 1.98% to 17,678.74, while Shanghai Composite was the lone loser down by 13.58 points or 0.42% to 3,191.33.