Markets trade flat with negative bias

After getting a weak start, benchmarks were altering between positive and negative territory and are trading with the marginal loss in early noon session amid weak global cues. Sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds. However, Investors got some encouragement with report that the India's services sector rebounded from flat activity in November and showed an encouraging growth in December, with the Nikkei Services Purchasing Managers' Index (PMI) climbing to a ten-month high of 53.6, compared with 50.1 last month. Meanwhile, telecom stocks including Bharti Airtel, RCom and MTNL are trading higher as the Delhi High Court is likely to pronounce its order on compensation for call drops later today. The Telecom Regulatory Authority of India (Trai) has asked operators to pay a compensation of Re one for every call drop, maximum three calls per day per mobile user, starting January 1. On the flip side, the metal pack is witnessing selling pressure as the concerns in the World’s second largest economy resurfaces with China’s Services PMI at 17-month low.  

On the global front, Asian markets were trading mostly in red, as China allowed the yuan to weaken further, stoking fears about its slowing economy, while a North Korean nuclear test heightened geopolitical tensions. Back home, the broader markets continue to outperform the benchmark indices with BSE Mid-cap and Small-cap indices up between 0.37% and 0.62% each. In scrip specific development, share of Premier Explosives has surged 12% after the company has signed a Memorandum of Understanding (MOU) with Israel Aerospace Industries Limited for exploring potential business opportunities. 

The BSE Sensex is currently trading at 25566.74, down by 13.60 points or 0.05% after trading in a range of 25502.96 and 25632.57. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 0.57%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.32%, Realty up by 0.36%, PSU up by 0.31%, Power up by 0.16% and Bankex up by 0.08%, while FMCG down by 0.76%, Metal down by 0.53%, Auto down by 0.27% and IT down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.63%, Bharti Airtel up by 1.91%, GAIL India up by 1.30%, Cipla up by 1.26% and TCS up by 1.00%. On the flip side, ITC down by 1.76%, ICICI Bank down by 1.46%, NTPC down by 1.02%, Tata Steel down by 0.95% and Infosys down by 0.91% were the top losers.

Meanwhile, the commerce and industry ministry in its meeting with representatives of industry chambers on January 7 will take up the issues related to manufacturing sector and improving ease of doing business. The meeting assumes significance against the backdrop of declining exports and contraction in the core sector industries.

The meeting will be chaired by Commerce and Industry Minister Nirmala Sitharaman. Representatives from industry bodies including CII and Ficci will attend the meet. Further in the meeting, there will be presentations on Make in India, Start-Up India and Ease of Doing business. After the presentations, issues related to these areas will be discussed between the ministry and industry chambers.

Contracting for twelve months in a row, India’s exports plunged 24 percent in November to $20 million. The significant fall in exports is attributed to weak global demand, amid a tepid global economic recovery. Similarly, in its worst performance in seven months, output of the eight core sectors contracted by 1.3 per cent in November from the year-ago period on account of a sharp drop in steel, cement and crude oil production.

The CNX Nifty is currently trading at 7785.90, up by 1.25 points or 0.02% after trading in a range of 7759.20 and 7797.25. There were 24 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.67%, Bharti Airtel up by 2.12%, GAIL India up by 1.41%, BPCL up by 1.36% and Cipla up by 1.33%. On the flip side, ITC down by 1.82%, ICICI Bank down by 1.40%, Zee Entertainment down by 1.19%, Tata Steel down by 1.09% and Vedanta down by 1.08% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 227.58 points or 1.24% to 18,146.42, Hang Seng decreased 158.03 points or 0.75% to 21,030.69, Taiwan Weighted decreased 78.45 points or 0.97% to 7,996.66 and KOSPI Index decreased 5.39 points or 0.28% to 1,925.14, while FTSE Bursa Malaysia KLCI increased 4.64 points or 0.28% to 1,670.34, Shanghai Composite increased 33.39 points or 1.02% to 3,321.10 and Jakarta Composite increased 53.39 points or 1.17% to 4,611.21.