Benchmarks trade lower in early deals on Friday

Indian equity markets are trading in red in early deals on Friday, as investors opted to book some profit after last session’s rally. Moreover, weak cues from Asian markets too dampened the sentiments. Depreciation in Indian rupee against dollar was also weighed down the markets. The rupee weakened by 9 paise to 66.80 against the US dollar in early trade today at the Interbank Foreign Exchange. Investors remained on sidelines ahead of October factory output data due later in the day and November inflation print to be released on Monday and the US Federal Reserve's policy meet on December 15-16, when it is widely expected to raise interest rates for the first time in nearly a decade. However, down side remained capped with a UN report stating that India's economy is projected to grow by 7.3 percent next year and will continue to be the fastest growing economy in the world in 2016 and 2017, amid a volatile global financial condition. On the sectoral front, traders were seen piling up position in Consumer Durables, Metal, IT, Auto and TECK, while selling was witnessed in Realty, FMCG, Capital Goods, Power and Bankex.

In the scrip specific development, Vinati Organics was trading in green on the BSE after the company entered into long term tripartite agreement with USA & Japan based chemical companies for supply of a customized product.

On the global front, the US stocks ended higher on Thursday amid a rally in the energy sector even as crude prices dropped to fresh seven-year lows on the session. Asian markets were trading mostly in red, on track for a weekly loss as plunging crude prices heightened fears about receding global growth, while China's yuan hit its weakest level in more than four years.

Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,650 and 25,200 levels respectively. The market breadth on BSE was positive in the ratio of 1025: 617 while 89 scrips remained unchanged.

The BSE Sensex is currently trading at 25234.25, down by 18.07 points or 0.07% after trading in a range of 25189.74 and 25316.14. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.15%, while Small cap index gained 0.20%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.92%, Metal up by 0.92%, IT up by 0.20%, Auto up by 0.09% and TECK up by 0.02%, while Realty down by 0.63%, FMCG down by 0.45%, Capital Goods down by 0.37%, Power down by 0.27% and Bankex down by 0.22% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.66%, Lupin up by 1.83%, Hindalco up by 1.19%, Cipla up by 1.07% and Sun Pharma Inds. up by 0.99%. On the flip side, ITC down by 1.46%, NTPC down by 1.01%, Larsen & Toubro down by 1.00%, BHEL down by 0.75% and Axis Bank down by 0.68% were the top losers.

Meanwhile, United Nations (UN) in its latest report World Economic Situation and Prospects (WESP) 2016 has projected India to record a 7.3 percent economic growth in 2016 and 7.5 percent in 2017, and said that India will continue to be the fastest growing economy in the world in 2016 and 2017 amid a volatile global financial conditions that will see diminished trade flows and stagnant investment.

Though, the Indian economic growth is only a marginal improvement from the 7.2 percent it achieved in 2014-15, but still it remains the fastest growing economy in the world in 2016 and 2017. China will see a slowdown in growth in 2016 to 6.4 percent from 6.8 percent it had achieved in 2015. The report further said that the growth of the Chinese economy will not improve in 2017, when it will grow by just 6.5 percent, a percentage point slower than India.

Regarding the world economy, the report has said that it has fallen below forecasts of even six months ago and will grow only modestly over the next two years due to “cyclical and structural headwinds,” including low commodity prices and stagnant investment. Global growth is estimated at a mere 2.4 per cent in 2015, a downward 0.4 percentage-point revision from forecasts presented six months ago. The global economy is projected to grow by 2.9 per cent in 2016 and 3.2 per cent in 2017, supported by generally less restrictive fiscal and still accommodative monetary policy stances worldwide.

The report which is a joint product of the United Nations Department of Economic and Social Affairs (UN/DESA), the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions, had said that major weakness in the macroeconomic picture remains the employment situation. While, in the developed economies, unemployment figures remain elevated in several countries, especially in the euro area, in developing economies, despite slower employment growth, unemployment rates have remained relatively stable since 2013, partly owing to lower labour force growth. In its latest report it added that economic growth in developing and transition economies is expected to bottom out and gradually recover, but the external environment will continue to be challenging and growth will remain well below its potential.

The CNX Nifty is currently trading at 7672.85, down by 10.45 points or 0.14% after trading in a range of 7659.75 and 7703.05. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.81%, Lupin up by 1.68%, Hindalco up by 1.25%, Vedanta up by 0.90% and Sun Pharma Inds. up by 0.82%. On the flip side, ITC down by 1.28%, Larsen & Toubro down by 0.92%, Power Grid Corpn. down by 0.92%, ONGC down by 0.89% and NTPC down by 0.86% were the top losers.

Asian markets were trading mostly in red, Taiwan Weighted decreased 48.14 points or 0.59% to 8,168.03, Jakarta Composite decreased 38.19 points or 0.86% to 4,428.02, Shanghai Composite decreased 29.26 points or 0.85% to 3,426.23, KOSPI Index decreased 5.6 points or 0.29% to 1,946.47 and FTSE Bursa Malaysia KLCI decreased 3.39 points or 0.21% to 1,645.26.

On the flip side, Nikkei 225 increased 188.75 points or 0.99% to 19,235.30 and Hang Seng decreased 139.15 points or 0.64% to 21,565.46.