Markets trade flat with positive bias in absence of positive triggers

In the extremely choppy session of trade, local equity markets were trading flat in absence of any positive trigger which could lift the markets higher from the doldrums. Rather disappointing economic data pressurized the sentiment, though positive global set-up kept the benchmarks neck in green. Both, Sensex and Nifty, with minute gain were holding above the crucial 28,250 and 8,550 levels respectively. Meanwhile, broader indices outperforming larger counterparts were trading with gains in the range of 0.55-0.85%.

On the global front, Asian shares were trading higher on Monday after a dismal U.S. jobs report led investors to pare bets the U.S. Federal Reserve would hike interest rates anytime soon. Meanwhile, major European markets were closed from Friday to Monday for the Easter holiday, reopening on Tuesday.

Closer home, most of the sectoral indices on BSE were trading into positive territory, nevertheless stocks from Consumer Durables, FMCG and Auto counters were the prominent gainers of the session. On the flip side, stocks from Metal, banking and Information Technology counters were the top losers of the session.  Banking stocks were trading lower ahead of RBI’s first bi-monthly Monetary Policy for 2015-16 scheduled on April 7, 2015, as Governor Raghuram Rajan waits to see how RBI's recent rate cuts percolate through the country's financial system. Meanwhile, pharma stocks gained on renewed buying, with Sun Pharmaceutical Industries stocks jumping higher by 5% after the company executed a settlement agreement with the Medicines Company USA regarding a generic version of Angiomax, Bivalirudin injection. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1473:895; while 106 shares remained unchanged.

The BSE Sensex is currently trading at 28263.21, up by 3.07 points or 0.01% after trading in a range of 28221.99 and 28367.58. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 0.84%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.52%, FMCG up by 1.37%, Auto up by 0.82%, Oil & Gas up by 0.52% and PSU up by 0.18% while, Metal down by 0.72%, Bankex down by 0.60%, IT down by 0.40%, TECK down by 0.26% and Power down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 5.09%, Mahindra & Mahindra up by 2.96%, ONGC up by 2.56%, Cipla up by 2.14% and Tata Motors up by 2.13%. On the flip side, Tata Steel down by 1.81%, Wipro down by 1.69%, HDFC down by 1.56%, Tata Power down by 1.55% and TCS down by 1.31% were the top losers.

Meanwhile, in not so encouraging sign for the economy, growth in India's pivotal services industry lost some momentum in March as input prices rose at the fastest pace in nearly a year with HSBC Services Purchasing Managers' Index (PMI) easing to 53.0 in March from February's eight-month high of 53.9. However, March was eleventh straight month of expansion for the index as reading above 50 indicates growth.

Nevertheless the survey, providing signs of much of the weakness seen in 2014 being left behind suggested that India’s service sector ended the first three months of 2015 with a strong performance. The survey although suggested of slightly weaker pace of expansion than in the prior month was indicative of sustained new business growth. Further, output rose in four of the six broad areas of the service economy, the exceptions being financial intermediation and hotels & restaurants.In yet another positive sign, the month witnessed an increase in the level of new business placed with Indian services companies. Although solid, the rate of expansion eased since the prior month.

Manufacturers, meanwhile, recorded a stronger increase in order book volumes. Also, the employment rose during March, which was an improvement from the broadly unchanged levels recorded in the prior month. In the manufacturing economy, staffing levels stabilized.

Worryingly, however, cost inflationary pressures in the private sector as a whole firmed up. The input prices faced by services firms rose further in March. The rate of cost inflation was solid and the strongest since June 2014 due to increased petrol and transport prices. Also, output charges were raised in response to higher costs. Notably, despite the slow pace of expansion, service providers remained upbeat towards the prospects for business activity in 12 months’ time, with over 25% of survey members anticipating output growth over the course of the next year, citing strengthening demand conditions.

The CNX Nifty is currently trading at 8587.70, up by 1.45 points or 0.02% after trading in a range of 8573.75 and 8619.15. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 4.93%, Mahindra & Mahindra up by 2.98%, ONGC up by 2.69%, Idea Cellular up by 2.21% and ACC up by 2.20%. On the flip side, Wipro down by 1.97%, HDFC down by 1.81%, Tata Steel down by 1.75%, HCL Tech. down by 1.59% and Tata Power down by 1.48% were the top losers

Asian markets were trading mostly higher; with Straits Times gained 0.49 points or 0.01% to 3,454.24; KOSPI Index advanced 1.01 points or 0.05% to 2,046.43; FTSE Bursa Malaysia KLCI rose 8.47 points or 0.46% to 1,842.99; Jakarta Composite added 26.42 points or 0.48% to 5,482.82; Shanghai Composite surged 38.15 points or 1% to 3,863.93; Taiwan Weighted soared 92.66 points or 0.97% to 9,600.32; Hang Seng firmed up nby 192.89 points or 0.77% to 25,275.64. On the flip side Nikkei 225 down by 37.1 points or 0.19% to 19,397 was the lone loser on the index.