Benchmarks reverse gears; slip into negative territory in absence of positive triggers

Reversing gears, Indian equity markets have now slipped into negative territory in absence of positive triggers which could take the markets higher and profit booking in frontline line blue-chip stocks. Sentiments remained subdued on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 1,745.73 crore on December 04, 2015. The circumspect mood could also be attributed to caution as the better-than-expected US employment data for November, paving the way for a rise in the interest rate mid-December. However, investors got some support with the prospects for goods and services tax (GST) reform brightened as a panel headed by chief economic adviser Arvind Subramanian backed a lower rate and simpler structure that the opposition Congress party had demanded. The government-appointed panel suggested a standard GST rate of 17-18 percent. Shares of logistics companies were trading with traction as they would be direct beneficiary of the implementation of GST.

On the global front, Asian markets trading mostly in green on Monday after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected first increase in interest rates in almost a decade. Further, Oil stayed below $40 a barrel in Asia today after the OPEC cartel decided against slashing high output levels and traders turned their focus to a US central bank meeting next week. Back on street, stocks from Consumer Durables, Banking and Realty counters were supporting the markets’ uptrend, while those from FMCG, PSU and Metal counters were adding to the underlying cautious undertone. In scrip specific development, shares of Sun Pharmaceutical Industries have surged after the company’s subsidiary has received final approval from the US Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) for generic version of Gleevec, Imatinib Mesylate tablets 100mg and 400mg. Furthermore, Ashoka Buildcon has surged after the company’s subsidiary - Viva Highways has entered into a Share Purchase Agreement with PNC Infratech for purchase of 24,423,700 constituting 8.51% of share capital of JTCL equity shares of Rs 10 each fully paid for an aggregate consideration of Rs 34.19 crore held in Jaora-Nayagaon Toll Road Company (JTCL).

The market breadth on BSE was negative, out of 2445 stocks traded, 1426 stocks advanced, while 890 stocks declined on the BSE. 

The BSE Sensex is currently trading at 25611.03, down by 27.08 points or 0.11% after trading in a range of 25596.43 and 25785.53. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index up by 0.40%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.52%, Bankex up by 0.24%, Realty up by 0.21%, Capital Goods up by 0.14% and IT up by 0.10%, while FMCG down by 1.30%, PSU down by 0.61%, Metal down by 0.59%, Power down by 0.19% and Auto down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 2.63%, Tata Steel up by 1.21%, HDFC Bank up by 0.85%, Hindustan Unilever up by 0.82% and Hindalco up by 0.76%. On the flip side, ITC down by 3.52%, Coal India down by 1.85%, NTPC down by 1.80%, ONGC down by 1.45% and Dr. Reddys Lab down by 0.96% were the top losers.

Meanwhile, Minister of State for Finance Jayant Sinha has said that government is working on universal health insurance scheme, similar to other social security scheme. Emphasising that the low cost of transaction is key to success of digital financial inclusion goal he said “One of the apps that the government is thinking about right now is health insurance then they have got national crop insurance and the government is working on that as well.” Sinha said that the government is working towards completely cashless digital economy.

Sinha further asserted that the government is solving access problem with social security open architecture and it can now load whole host of other applications on the top of the platform that they are building. Besides, he said that other applications can be put on that platform and it can also allow state government to put their schemes on that platform.

Currently, General insurance product Pradhan Mantri Jeevan Suraksha Bima Yojna while life insurance product Pradhan Mantri Jeevan Jyoti Bima Yojana is being provided through banks at a very low cost premium to all bank account holders including Jan Dhan account holders.

The CNX Nifty is currently trading at 7779.75, down by 2.15 points or 0.03% after trading in a range of 7778.30 and 7825.40. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.79%, Asian Paints up by 2.14%, Ambuja Cement up by 1.72%, Grasim Industries up by 1.60% and BPCL up by 1.50%. On the flip side, ITC down by 3.57%, Cairn India down by 2.58%, Coal India down by 2.07%, NTPC down by 1.65% and ONGC down by 1.39% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI up by 0.39%, Shanghai Composite up by 0.34%, Jakarta Composite up by 0.84%, Hang Seng up by 0.26%, Taiwan Weighted up by 0.86% and Nikkei 225 up by 1.23%. On the other hand, KOSPI Index was down by 0.06%.