Benchmarks manage to trade marginally in green in noon deals

After trimming most of their gains, Indian equity benchmarks have managed to trade marginally in green in noon deals with a gain around quarter percent supported by firm global cues. European counters have made a firm start with CAC, DAX and FTSE trading with a gain of over one percentage point in early deals. Asian markets are rallying at this point of time after data showing that the slowdown in Chinese manufacturing activity is stabilizing boosted investor sentiment, though markets in China and Hong Kong are closed on Thursday for National Day.

Back home, gains remained capped after growth in eight core sectors - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, slowed to 2.6% in August compared with 5.9% in the corresponding month last year as steel production shrank and coal output flattened. Sentiment was also tempered by data that showed the country's manufacturing activity in September slowed more than expected to a seven-month low.

On the sectoral front, healthcare, capital goods and technology witnessed the maximum gain in trade, while realty, auto and metal remained the top losers on the BSE sectoral space. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,305 shares on the gaining side against 1,071 shares on the losing side while 121 shares remain unchanged.

The BSE Sensex is currently trading at 26247.53, up by 92.70 points or 0.35% after trading in a range of 26171.20 and 26431.80. There were 15 stocks advancing against 14 stocks declining on the index while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.43%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.39%, Capital Goods up by 0.64%, TECK up by 0.56%, Consumer Durables up by 0.56% and Power up by 0.45%, while Realty down by 0.52%, Auto down by 0.17% and Metal down by 0.03% were the few losing indices on BSE.

The top gainers on the Sensex were Lupin up by 2.48%, Wipro up by 2.40%, Sun Pharma Inds. up by 2.27%, TCS up by 2.16% and Dr. Reddys Lab up by 2.06%. On the flip side, Maruti Suzuki down by 1.93%, BHEL down by 1.78%, GAIL India down by 1.77%, Tata Motors down by 1.51% and HDFC down by 0.91% were the top losers.

Meanwhile, growth in eight core sectors - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, which comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP), slows to 2.6% in August compared with 5.9% in the corresponding month last year as steel production shrank and coal output flattened. The August output, however, was higher than the previous month when the core sectors had expanded by just 1.1 per cent. The combined Index of Eight Core Industries stands at 169.6 in August, 2015, which was 2.6% higher compared to the index of August, 2014. Its cumulative growth during April to August, 2015-16 expanded at a slower pace of 2.2 % as against 5.6 per cent in the first five months of 2014-15.

The decline in the core sector growth for the month of August was mainly on account of contraction in the steel. Crude Oil production having weight of 5.22% increased by 5.6% in August 2015 over August 2014. Its cumulative index during April to August, 2015-16 increased by 0.5 % over the corresponding period of previous year. The Natural Gas production having weight 1.71%, increased by 3.7 % in August, 2015. Its cumulative index during April to August, 2015-16 declined by 2.7 % over the corresponding period of previous year. Petroleum Refinery production having weight of 5.94% inched up by 5.8 % in August, 2015. Its cumulative index during April to August, 2015-16 increased by 4.3 % over 4.4% decline in the corresponding period of previous year. Fertilizer production having weight of 1.25% was the strongest performing sector increasing by 12.6 % in August, 2015. Its cumulative index during April to August, 2015-16 increased by 5.9 % over the corresponding period of previous year.

Further, Coal production having weight of 4.38% increased by 0.4 % in August, 2015 compared with year ago period. Its cumulative index during April to August, 2015-16 increased by 4.6 % over corresponding period of previous year. Cement production having weight of 2.41% increased by 5.4 % in August, 2015 against last fiscal period. Its cumulative index during April to August, 2015-16 increased by 1.8 % over the corresponding period of previous year. Electricity generation having weight of 10.32% increased by 5.6 % in August 2015 against same period last fiscal. Its cumulative index during April to August, 2015-16 increased by 2.8 % over the corresponding period of previous year.

Meanwhile the steel sector which showed a negative growth declined by 5.9 % in August, 2015 compared to same period last fiscal. Its cumulative index during April to August, 2015-16 declined by 0.03 % over the corresponding period of previous year.

The robust performance by the core sector is likely to get reflected in the IIP numbers due October 12.

The CNX Nifty is currently trading at 7961.35, up by 12.45 points or 0.16% after trading in a range of 7935.00 and 8008.25. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 3.57%, Lupin up by 2.50%, Wipro up by 2.30%, Sun Pharma up by 2.29% and TCS up by 2.11%. On the flip side, HCL Tech. down by 10.86%, GAIL India down by 2.08%, BHEL down by 1.90%, Maruti Suzuki down by 1.83% and Tata Motors down by 1.62% were the top losers.

All the Asian equity indices were trading in green; FTSE Bursa Malaysia KLCI increased 11.13 points or 0.69% to 1,632.17, KOSPI Index gained 16.51 points or 0.84% to 1,979.32, Straits Times strengthened 24.45 points or 0.88% to 2,815.34, Jakarta Composite surged 41.07 points or 0.97% to 4,264.98, Taiwan Weighted soared 114.7 points or 1.4% to 8,295.94 and Nikkei 225 was up by 334.27 points or 1.92% to 17,722.42.

European markets were trading in green; Germany’s DAX gained 1.04%, France’s CAC surged 1.26% and UK’s FTSE was up by 1.20%.