Benchmarks trade in green; Auto, FMCG lead

Reversing their losses, the equity benchmark indices have started trading in green in the late afternoon session on account of buying in front line blue chip counters taking cues from European counter parts. Investors paid no attention towards weaker-than-expected macroeconomic data which weighed on sentiments. Traders were seen piling position in Auto and FMCG stocks while selling was witnessed in Capital Goods, Power and Realty sector stocks. In scrip specific development, Tata Consultancy Services shares were trading in red after touching over 18-month low after India’s biggest outsourcer missed consensus revenue growth estimates for the sixth straight quarter. On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,500 and 24,600 levels respectively. The market breadth on BSE was negative in the ratio of 424:2314 while 143 scrips remained unchanged.

The BSE Sensex is currently trading at 24699.54, up by 17.51 points or 0.07% after trading in a range of 24387.69 and 24909.22. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.98%, while Small cap index down by 2.55%.

The gaining sectoral indices on the BSE were Auto up by 0.43% and FMCG up by 0.08%, while Capital Goods down by 2.49%, Power down by 1.64%, Realty down by 1.43%, PSU down by 1.36% and Metal down by 0.95% were the losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.63%, Infosys up by 1.90%, Mahindra & Mahindra up by 1.82%, Tata Motors up by 1.53% and Bajaj Auto up by 0.73%.

On the flip side, Adani Ports & Special down by 3.34%, Larsen & Toubro down by 3.14%, BHEL down by 2.69%, Bharti Airtel down by 2.27% and Lupin down by 2.25% were the top losers.

Meanwhile, rising for straight five months in a row, the retail or the Consumer Price Index (CPI) inflation for the month of December stood at 5.61 percent compared to 5.41 percent in November and 4.28 per cent in December 2014, on the back of costlier vegetables and cereals. This has limited the headroom for the Reserve Bank to lower rate next month.

As per the data released by the Ministry of Statistics and Programme Implementation, Consumer Price Index numbers on Base 2012=100 for Rural, Urban and Combined for the Month of December 2015 stood at 6.32%, 4.73% and 5.61% as against 5.95%, 4.71% and 5.41% in the month of November 2015. Meanwhile, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for the month of December 2015 stood at 6.41%, 6.31% and 6.40% respectively. The General Indices (Provisional) for the month of December 2015 for Rural, Urban and Combined are 127.9, 124.0 and 126.1 respectively. The CFPI for Rural, Urban and Combined for the same month are 131.2, 131.4 and 131.3 respectively.

Food inflation stood at nine month high of 6.4 per cent. Retail prices of cereals and products moved up by 2.12 per cent in December, from 1.7 per cent in November. The growth in prices in meat and fish stood out at 6.57 per cent as against 5.34 per cent in November while that of eggs was at 0.97 per cent, from 0.5 per cent in the previous month. Pulses continue to pose a big challenge for policymakers as the rate of price growth stood at 45.92 per cent, only marginally down from 46.08 per cent in November.

Retail inflation in the oil and fats category moved up to 7.06 per cent while that of fuel and light, it was 5.45 per cent. However, seasonal fruits turned cheaper in December, with inflation print at 0.64 per cent although vegetables prices grew 4.63 per cent.

The Reserve Bank of India (RBI) predicts inflation will accelerate to 5.8% by January 2016.The RBI takes into account retail inflation while formulating monetary policy. In its bi-monthly monetary policy review in the beginning of December, RBI Governor Raghuram Rajan had maintained status quo in its key repo rate as retail inflation has been on a rising trend for past few months.

The CNX Nifty is currently trading at 7533.90, up by 23.60 points or 0.31% after trading in a range of 7425.80 and 7585.95. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.53%, IndusInd Bank up by 2.34%, Tata Motors up by 2.14%, Mahindra & Mahindra up by 2.04% and Infosys up by 1.97%.

On the flip side, Vedanta down by 3.32%, Adani Ports & Special down by 3.13%, Larsen & Toubro down by 2.90%, Bank of Baroda down by 2.60% and BHEL down by 2.42% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.47 points or 0.09% to 1,642.84, KOSPI Index increased 25.42 points or 1.34% to 1,916.28, Jakarta Composite increased 27.7 points or 0.61% to 4,540.22, Taiwan Weighted increased 56.16 points or 0.72% to 7,824.61, Hang Seng increased 223.12 points or 1.13% to 19,934.88 and Nikkei 225 increased 496.67 points or 2.88% to 17,715.63.

On the other hand, Shanghai Composite decreased 73.26 points or 2.42% to 2,949.60.

The European markets were trading in green; UK’s FTSE 100 increased 47.5 points or 0.8% to 5,976.74, France’s CAC increased 58.84 points or 1.34% to 4,437.59 and Germany’s DAX increased 126.69 points or 1.27% to 10,112.12.