Benchmarks trim losses; trades in green

Indian equity markets trim losses and started trading in green in the late afternoon session on account of buying in frontline blue chip counters. The sentiments got some support after Minister of State for Finance Jayant Sinha stated that the country needs to grow at 7-8 percent a year to create more job opportunities for young people and double the size of the economy in 10 years. Traders were seen piling positions in Realty, Metal and Oil & Gas stocks while selling was witnessed in Capital Goods, Power and Auto sector stocks. In scrip specific development, shares of oil exploration and production companies like Cairn India, ONGC and Oil India were trading firm as after crude oil prices surged. On the global front, the Asian markets were trading mostly in green while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,750 and 29,000 levels respectively. The market breadth on BSE was negative in the ratio of 1338:1393 while 117 scrips remained unchanged.

The BSE Sensex is currently trading at 29045.12, up by 44.98 points or 0.16% 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 trading in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.39%.

The gaining sectoral indices on the BSE were Realty up by 2.55%, Metal up by 2.45%, Oil & Gas up by 0.68%, PSU up by 0.63% while, Capital Goods down by 0.91%, Power down by 0.64%, Auto down by 0.61%, Bankex down by 0.34%, Consumer Durables down by 0.19% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 3.78%, Hindalco up by 3.66%, Coal India up by 2.80%, ONGC up by 2.71% and Tata Steel up by 2.48%. On the flip side, Axis Bank down by 3.60%, BHEL down by 2.91%, TCS down by 1.67%, Tata Motors down by 1.54% and Bharti Airtel down by 1.05% 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 8765.60, up by 9.05 points or 0.10% after trading in a range of 8716.40 and 8792.85. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were DLF up by 3.88%, Hindalco up by 3.72%, Sesa Sterlite up by 3.65%, Cairn India up by 3.46% and Coal India up by 2.93%. On the flip side, Axis Bank down by 3.72%, BHEL down by 2.95%, Zee Entertainment down by 2.01%, Tata Motors down by 1.89% and TCS down by 1.83% were the top losers.

The Asian markets were trading mostly in green; Straits Times increased 9.02 points or 0.26% to 3,417.04, KOSPI Index increased 10.83 points or 0.55% to 1,962.79, Jakarta Composite increased 14.67 points or 0.28% to 5,306.38, FTSE Bursa Malaysia KLCI increased 20.76 points or 1.17% to 1,802.02, Taiwan Weighted increased 65.19 points or 0.69% to 9,513.92, Hang Seng increased 124.98 points or 0.51% to 24,679.76 and Nikkei 225 increased 342.89 points or 1.98% to 17,678.74.

On the other hand, Shanghai Composite decreased 30.78 points or 0.96% to 3,174.13.

The European markets were trading mostly in red; Germany’s DAX decreased 45.29 points or 0.42% to 10,845.66, France’s CAC decreased 7.2 points or 0.15% to 4,670.70 and UK’s FTSE 100 decreased 12.37 points or 0.18% to 6,859.43.