Benchmarks trade in red in noon deals

Indian equity benchmarks are trading in red terrain in noon deals owing to lack of directional cues. Traders remained concerned with report that India’s external debt rose 1.7% to $483.2 billion at the end of September from the level in March due to long-term liabilities, especially commercial borrowings and non-resident Indian deposits. Depreciation in Indian rupee too dampened sentiments. The rupee depreciated by seven paise to trade at 66.22 against the US dollar on the first trading day of 2016 due to fresh buying of the American currency by banks and importers.

Meanwhile, shares related to aviation sector are flying higher on back of heavy volumes on reports that cut in Aviation Turbine Fuel (ATF) prices. Stocks related to Oil & gas and power counters remained in action after Qatar nearly halved the price of gas it sells under a 25-year contract and waived a payment liability of Rs 12,000 crore arising from India's refusal to import the committed number of shipments in 2015. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,807 shares on the gaining side against 674 shares on the losing side while 110 shares remain unchanged.

The BSE Sensex is currently trading at 26108.30, down by 9.24 points or 0.04% after trading in a range of 26008.20 and 26145.78. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.69%, while Small cap index up by 0.73%.

The top gaining sectoral indices on the BSE were Realty up by 1.52%, Capital Goods up by 0.92%, Consumer Durables up by 0.78%, Auto up by 0.77% and Energy up by 0.65%, while Bankex down by 0.25%, TECK down by 0.21%, Finance down by 0.19%, IT down by 0.14% and Telecom down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.98%, BHEL up by 1.48%, Coal India up by 1.32%, Adani Ports & Special up by 0.96% and Larsen & Toubro up by 0.89%. On the flip side, Tata Steel down by 1.04%, GAIL India down by 0.93%, Sun Pharma down by 0.82%, Hindustan Unilever down by 0.77% and ICICI Bank down by 0.69% were the top losers.

Meanwhile, extending the reduction for the third time in row, Oil Marketing Companies (OMCs), has cut the price of petrol by 63 paise a litre and diesel by Rs 1.06/ litre, on the back of softening in global oil rates. The new rates announced by OMCs will be effective midnight December 31/January 1. Following the cut, petrol in Delhi will be 59.35 a litre as against 59.98 per litre, while diesel will cost Rs 45.03 a litre as against Rs 46.09 per litre.

At the last revision, State run fuel retailers have slashed price of petrol and diesel by 50 paise per litre and 46 paise per litre respectively. 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 7941.30, down by 5.05 points or 0.06% after trading in a range of 7909.80 and 7951.85. There were 24 stocks advancing against 24 stocks declining on the index while 2 stocks remained unchanged.

The top gainers on Nifty were Tata Motors up by 2.06%, BHEL up by 1.36%, Cairn India up by 1.09%, ACC up by 1.06% and Coal India up by 1.00%. On the flip side, Tata Steel down by 1.23%, NTPC down by 1.03%, Zee Entertainment down by 0.96%, HCL Tech down by 0.95% and Sun Pharma down by 0.91% were the top losers.