Markets show modest recovery, pares some early losses

Markets are showing modest signs of recovery and have pared some losses, though the benchmarks after plunging in early deals were still trading below their crucial psychological levels, Sensex and Nifty were trading around 25600 and 7750 levels respectively. Some buying was being seen in selective stocks, still there was no major support to the market and apart from bluechips, the broader markets too were suffering deeper cuts. Traders were worried about the weak global trends and disappointing macro data from the domestic front. India's factory output growth declined to 3.6 percent in September from 6.4 percent in the month before, while the annual retail inflation for October moved up significantly to 5 percent from 4.41 percent in the month before. Traders after the Muhurat session’s sparkle were back again to gloom, even the government’s announcement of opening up almost 15 sectors, were unable to make any impact, though the International Monetary Fund has said it broadly supports the series of economic reforms undertaken by India. Back on street, metals and consumer durables showing valiant effort are back in green, though all other sectoral indices were still reeling in red, with capital goods, IT and tech taking the lead.

The BSE Sensex is currently trading at 25623.55, down by 243.40 points or 0.94% after trading in a range of 25540.73 and 25724.09. There were just 4 stocks advancing against 26 stocks declining on the index.

The broader indices too were trading in red; the BSE Mid cap index was down by 1.54%, while Small cap index declined by 0.87%.

The two gaining sectoral indices on the BSE were Metal up by 0.66%, Consumer Durables up by 0.62%, while Capital Goods down by 1.67%, IT down by 1.52%, FMCG down by 1.51%, TECK down by 1.51%, Realty down by 1.30% were the losing indices on BSE.

The gainers on the Sensex were Coal India up by 2.37%, Tata Steel up by 0.86%, GAIL India up by 0.68% and Axis Bank up by 0.65%. On the flip side, Vedanta down by 3.57%, ONGC down by 3.21%, TCS down by 2.77%, Cipla down by 2.55% and Larsen & Toubro down by 1.94% were the top losers.

Meanwhile, surging for the third straight month, the retail or the Consumer Price Index (CPI) inflation for the month of October rose 5 percent, accelerating from a 4.41% in September and 4.62 percent in October last year, on the back of costlier pulses and other food items. Higher demand for consumer durables and food items during the festival season beginning in October also contributed to inflation.

As per the data released by the Ministry of Statistics and Programme Implementation, the Consumer Price Index (CPI) on Base 2012=100 for Rural, Urban and Combined for the Month of October 2015 stood at 5.54%, 4.28% and 5.00% respectively, as against 5.05%, 3.61% and 4.41% respectively in September 2015.  Meanwhile,  Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for the month of October 2015 stood at 5.18%, 5.47% and 5.25% respectively.

The General Indices (Provisional) for the month of October 2015 for Rural, Urban and Combined are 127.7, 124.2 and 126.1 respectively.  The CFPI for Rural, Urban and Combined for the same month are 132.0, 133.1 and 132.4 respectively.

Retail Inflation for the month under review declined mainly on account of food inflation. The overall consumer food inflation during the month rose to 5.25 percent in October, according to the government data. The vegetable and fruits price inflation stood at 2.42 percent and 1.98 percent respectively in October. Meanwhile, the inflation in pulses and products category rose to a staggering 42.20 percent in October, which pushed up the overall index for food and beverages to 5.34 percent. Inflation in cereals and products was also higher at 1.46 percent. Besides, the price rise in spices category was higher at 9.82 percent and for non-alcoholic beverages at 4.31 percent. Inflation in sugar and confectionery category remained in negative zone at (-) 10.47 percent.

However for protein rich items such as meat and fish, the rate of price rise has slowed to 5.01 percent. Likewise, rate of retail price rise in milk and its products was 4.79 percent. Further, eggs also turned cheaper at 0.59 percent during the month.

The CNX Nifty is currently trading at 7757.05, down by 67.95 points or 0.87% after trading in a range of 7730.90 and 7774.80. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.64%, Kotak Mahindra Bank up by 2.03%, Tata Steel up by 1.11%, BPCL up by 1.08% and Axis Bank up by 0.69%. On the flip side, Cairn India down by 3.91%, ONGC down by 3.44%, Vedanta down by 3.41%, Zee Entertainment down by 3.03% and Ambuja Cement down by 2.77% were the top losers.

All the Asian markets barring the Jakarta Composite, which was up by 13.33 points or 0.3% to 4,475.55, were trading in red.

Hang Seng slumped by 486.11 points or 2.12% to 22,402.81, Nikkei 225 lost 100.86 points or 0.51% to 19,596.91, Taiwan Weighted declined by 98.59 points or 1.17% to 8,329.50, KOSPI Index was lower by 20.07 points or 1.01% to 1,973.29, Shanghai Composite was down by 18.16 points or 0.5% to 3,614.74 and FTSE Bursa Malaysia KLCI was tad lower 1.99 points or 0.12% to 1,661.21.