Markets trade in fine fettle in noon deals; Sensex regains 26,200 mark

Indian equity benchmarks are trading in fine fettle in noon deals with frontline gauges recapturing their crucial 26,200 (Sensex) and 7,950 (Nifty) levels, as Reserve Bank of India (RBI), in-line with street’s expectation, has kept its key repo lending rate unchanged at 6.75 per cent after consumer inflation picked up to a four-month high and as emerging markets brace for a US rate hike. Sentiment got a boost after India’s economy grew by 7.4% in the second quarter (July-September), outpacing China to become the fastest growing major economy. However, gains remained capped on report that India’s manufacturing sector grew at its weakest pace in over two years in November as demand and output continued to soften. Nikkei’s Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to a 25-month low of 50.3 in November from October’s 50.7.

On the global front, Asian markets were trading mostly in green at this point of time as investors awaited Chinese factory data and financial shares climbed. Improved manufacturing in Japan too aided the sentiments. Back home, on the sectoral front, metal, material and healthcare witnessed the maximum gain in trade, while telecom, auto and Consumer Discretionary Goods & Services 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 1,503 shares on the gaining side against 989 shares on the losing side while 114 shares remain unchanged.

The BSE Sensex is currently trading at 26206.92, up by 61.25 points or 0.23% after trading in a range of 26121.52 and 26246.02. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65%, while Small cap index up by 0.48%.

The top gaining sectoral indices on the BSE were Metal up by 1.95%, Materials up by 1.32%, Healthcare up by 0.98%, Energy up by 0.97% and Fast Moving Consumer Goods up by 0.56%, while Telecom down by 0.97%, Auto down by 0.30% and Consumer Discretionary Goods & Services down by 0.30% were the few losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 3.35%, Vedanta up by 2.78%, Tata Steel up by 2.65%, Hindalco up by 2.53% and Hindustan Unilever up by 2.53%. On the flip side, Bharti Airtel down by 3.20%, GAIL India down by 2.05%, Axis Bank down by 0.94%, Tata Motors down by 0.53% and Infosys down by 0.44% were the top losers.

Meanwhile, in order to align domestic rates with global petroleum product prices, Oil Marketing Companies (OMCs) have slashed price of petrol and diesel by 58 paise per litre and 25 paise per litre respectively. The new rates announced by OMCs will be effective from December 1, 2015. Following the cut, the price of petrol in the National Capital will be Rs 60.48 per litre as against Rs 60.70 a litre currently, whereas price of diesel will be Rs 46.55 per litre compared with the Rs 46.80 now.

At the last revision on November 16, State run fuel retailers had hiked diesel price by 95 paise per litre. However, price of petrol has been kept unchanged. Rates of diesel were last cut by 50 paise on September 1. For the same period petrol price was reduced by Rs 2 per litre after that the price was kept unchanged for four occasions.

With both international prices of petrol and diesel continuing their downtrend and the rupee-dollar rates appreciating, Oil Marketing companies went ahead and further reduced fuel prices. PSU oil marketing companies Indian Oil Corporation, Bharat Petroleum Corp and Hindustan Petroleum Corp revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rates in the previous fortnight. The oil companies have said that the movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.

The CNX Nifty is currently trading at 7962.20, up by 26.95 points or 0.34% after trading in a range of 7934.15 and 7972.15. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 3.45%, Vedanta up by 3.00%, Tata Steel up by 2.85%, Hindustan Unilever up by 2.71% and Hindalco up by 2.66%. On the flip side, Bharti Airtel down by 3.28%, GAIL India down by 1.97%, Adani Ports &Special down by 1.51%, Axis Bank down by 1.01% and Maruti Suzuki down by 0.84% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 4.82 points or 0.29% to 1,676.98, KOSPI Index surged 31.96 points or 1.6% to 2,023.93, Jakarta Composite soared 81.55 points or 1.83% to 4,528.00, Taiwan Weighted gained 142.69 points or 1.71% to 8,463.30, Nikkei 225 added 264.93 points or 1.34% to 20,012.40 and Hang Seng was up by 415.53 points or 1.89% to 22,411.95. On the flip side, Shanghai Composite was down by 6.84 points or 0.2% to 3,438.56.