Markets trade in fine fettle in noon deals; Sensex regains 25,100 mark

Indian equity benchmarks, recovering from intraday low level, are trading in fine fettle in noon deals with frontline gauges recapturing their crucial 25,100 (Sensex) and 7,600 (Nifty) levels, as investors opted to buy beaten down but fundamentally strong stocks. Sentiments remained up-beat after India's industrial output grew at five-year high rate of 9.8 percent in October, a significant rebound from 3.84 percent growth recorded in September 2015 and a contraction of 2.7 percent in October last year. Some support also came with report that foreign portfolio investors (FPIs) bought shares worth a net Rs 253.73 crore on Friday.

On the global front, Asian markets were trading mostly in red amid growing anxiety over this week’s Federal Reserve interest-rate decision. Back home, WPI inflation for November came in at negative 1.99 percent against negative 3.81 percent in preceding month. September WPI inflation has been revised to negative 4.59 percent from negative 4.54 percent earlier. Meanwhile, the rupee breached the 67-mark by depreciating 18 paise to 67.06 against the dollar in noon deals at the Interbank Foreign Exchange, mainly on strong demand for the American unit from importers and some banks amid a lower opening of the domestic equity market. 

Shares of sugar companies remained on buyers’ radar after the government plans to increase the cess on sugar by almost Rs 100 per quintal to fund its ambitious programme of paying Rs 4.50 per quintal directly into the bank accounts of growers. On the flip side, shares related to auto counter remained under pressure after the National Green Tribunal (NGT) on Friday ordered immediate ban on registration of diesel-run cars in the national capital. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,358 shares on the gaining side against 958 shares on the losing side while 183 shares remain unchanged.

The BSE Sensex is currently trading at 25101.70, up by 57.27 points or 0.23% after trading in a range of 24867.73 and 25131.77. 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 0.58%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were Metal up by 1.43%, Basic Material up by 1.13%, Healthcare up by 0.72%, IT up by 0.50% and TECK up by 0.46%, while Auto down by 0.48%, Oil & Gas down by 0.20%, Telecom down by 0.13% Industrial down by 0.12% and Realty down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.35%, Hindustan Unilever up by 2.29%, BHEL up by 1.54%, Sun Pharma Inds. up by 1.43% and Infosys up by 1.20%. On the flip side, Tata Motors down by 2.32%, ONGC down by 1.62%, TCS down by 0.94%, Axis Bank down by 0.81% and Mahindra & Mahindra down by 0.80% were the top losers.

Meanwhile, Pesident Pranab Mukherjee has said that Political stability and several new initiatives taken by the government including Make in India, Digital India and Swachh Bharat, will help the country emerge as an attractive investment destination. He further stated that the country could achieve 8 per cent growth rate if it makes united efforts in this direction.

For better economic performance, he said that a re-energised manufacturing sector is crucial. Mukherjee while emphasizing on finding technological solutions said that there are various challenges and the country should think out of the box to handle country's problems. Besides, He added that India will have to bring 'technology, scientific applications and innovative approach' to solve the problems of the country.

Additionally, Mukherje said that a prolonged global economic slowdown had affected the growth performance of all major economies. Talking about the country’s export, President said that during the heydays of country's growth, exports grew over 20 percent and contributed substantially to the GDP. Though the exports have stagnated in the last three years, the import bill has also decreased, helping India to keep the current account deficit to manageable levels. He further highlighted that foreign exchange reserves at $353 billion as of October-end are also at comfortable levels, giving a cushion to meet any crisis.

The CNX Nifty is currently trading at 7628.85, up by 18.40 points or 0.24% after trading in a range of 7551.05 and 7643.60. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 3.46%, Tata Steel up by 2.22%, Hindustan Unilever up by 2.19%, BHEL up by 1.78% and Ambuja Cement up by 1.59%. On the flip side, Tata Motors down by 2.34%, Cairn India down by 2.19%, Bharti Airtel down by 1.57%, ONGC down by 1.51% and Axis Bank down by 1.01% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 declined 347.06 points or 1.8% to 18,883.42, Hang Seng decreased 172.86 points or 0.81% to 21,291.19, Taiwan Weighted dropped 75.73 points or 0.93% to 8,040.16, Jakarta Composite shed 50.59 points or 1.15% to 4,342.93, KOSPI Index fell 20.8 points or 1.07% to 1,927.82 and FTSE Bursa Malaysia KLCI was down by 13.26 points or 0.81% to 1,626.88. On the flip side, Shanghai Composite was up by 67.29 points or 1.96% to 3,501.87.