Markets trades flat with positive bias

Indian equity benchmarks continued to trade flat with positive bias in early noon session, the passage of the long-pending GST bill, lower interest rates and a bounce-back in the foreign portfolio investments, as also a stable rupee and good monsoons, figure high on the New Year wishlist of Dalal Street to help it regain the 30,000-point milestone. Furthermore, the broader markets continue to outperform significantly- BSE Midcap and Smallcap indices are up almost 0.70% each. Market breadth is positive on the BSE with 1,744 shares advancing and 580 shares declining. Meanwhile, shares of aviation companies like Jet Airways (India), SpiceJet and Globalvectra and Interglobe Aviation continue to maintain their upward march currently trading at fresh 52-week highs on back of heavy volumes cut in Aviation Turbine Fuel (ATF) prices.

Back home, in scrip specific development, share of Corporation Bank gained around 4 percent after the bank announced issuance of 2.8 crore shares worth Rs 143 crore to the Life Insurance Corporation of India on a preferential basis. IDBI Bank was trading higher after the government gave its approval to the bank to raise Rs 3,771 crore during the year, by way of Qualified Institutional Placement (QIP), a move which will dilute its holding in the state-owned lender.

The BSE Sensex is currently trading at 26121.82, up by 4.28 points or 0.02% after trading in a range of 26008.20 and 26145.78. 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 0.68%, while Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were Realty up by 1.31%, Capital Goods up by 0.95%, Consumer Durables up by 0.79%, Auto up by 0.72% and Power up by 0.61%, while Bankex down by 0.16%, TECK down by 0.07% and IT down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.80%, BHEL up by 1.45%, Coal India up by 1.25%, Adani Ports &Special up by 1.25% and Cipla up by 0.92%. On the flip side, GAIL India down by 1.12%, Tata Steel down by 0.98%, Sun Pharma Inds. down by 0.85%, NTPC down by 0.69% and ICICI Bank down by 0.65% were the top losers.

Meanwhile, India’s core sector, after expanding for six consecutive months contracted 1.3% in November, dragged down by a sharp decline in steel production due to weak demand and imports. Registering the steepest fall in over a decade, the output in the eight key infrastructure industries, comprising nearly 38 % of the weight of items included in the Index of Industrial Production (IIP) plunged in November 2015 by 1.3 per cent compared to the same month a year ago, indicating a possible hiccup in the nascent economic recovery and a downturn in industrial production. Last time, the sectors were in negative zone was in April, when they shrank by 0.4%, while the rate of growth rate in October was 3.2%.

According to that data released by the ministry of Commerce and Industry showed the combined Index of eight core industries coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity stands at 166.8 in November, 2015, which was 1.3% lower compared to the index of November, 2014. Its cumulative growth during April to November, 2015-16 was 2.0%.

The decline in the core sector growth for the month of November was mainly on account of contraction in the output of steel, cement and crude oil production. Crude Oil production having weight of 5.22% declined by 3.3% in November, 2015 over -0.1% in November, 2014. Its cumulative index during April to November, 2015-16 decreased by 0.4% over the corresponding period of previous year. Natural gas production with the overall weight of 1.71% contracted by 3.9% in November, 2015, over -2.3% in November last year. Its cumulative index during April to November, 2015-16 declined by 2.3% over the corresponding period of previous year. Steel production having weight of 6.68% declined by 8.4% in November, 2015 over 9.9% in the same period last year. Its cumulative index during April to November, 2015-16 declined by 1.5% over the corresponding period of previous year. Cement production having weight of 2.41% decreased by 1.8 % in November, 2015 over 10.5% in November 2014. Its cumulative index during April to November, 2015-16 increased by 2.1% over the corresponding period of previous year.

On the flip side, Coal production having weight of 4.38% increased by 3.5% in November, 2015 over November, 2014. Its cumulative index during April to November, 2015-16 increased by 4.3% over corresponding period of previous year. Petroleum Refinery production having weight of 5.94%,increased by 2.5 % in November, 2015. Its cumulative index during April to November, 2015-16 increased by 2.5% over the corresponding period of previous year. Fertilizer production having weight of 1.25%, increased by 13.5 % in November, 2015 over - 2.8% in the same month last year. Its cumulative index during April to November, 2015-16 increased by 9.7 % over the corresponding period of previous year.

Meanwhile, Electricity generation having weight of 10.32% recorded no change in November, 2015 over November, 2014. Its cumulative index during April to November, 2015-16 increased by 4.2% over the corresponding period of previous year.

The fall in core sector output may curb industrial growth, which reached a five-year high of 9.8% in October. Part of the contraction in core sector output can be attributed to the fewer number of working days as compared with November 2014 and the shift in the festival was in October last year.

The CNX Nifty is currently trading at 7946.75, up by 0.40 points or 0.01% after trading in a range of 7909.80 and 7951.85. There were 27 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 1.87%, BHEL up by 1.51%, Ultratech Cement up by 1.41%, Ambuja Cement up by 1.16% and Cairn India up by 1.16%. On the flip side, Tata Steel down by 1.14%, NTPC down by 0.92%, GAIL India down by 0.88%, Sun Pharma down by 0.85% and Hindustan Unilever down by 0.78% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite increased 23.65 points or 0.52% to 4,593.01, Hang Seng increased 32.25 points or 0.15% to 21,914.40, Nikkei 225 increased 51.48 points or 0.27% to 19,033.71 and Taiwan Weighted increased 58.07 points or 0.7% to 8,338.06, while Shanghai Composite decreased 33.69 points or 0.94% to 3,539.18, KOSPI Index decreased 5 points or 0.25% to 1,961.31 and FTSE Bursa Malaysia KLCI decreased 0.63 points or 0.04% to 1,692.51.