Benchmarks continue to trade higher in noon deals

Jubilation continues on Dalal Street in noon deals led by buying across the counters amid stabilization of crude oil prices. Some support to the markets with foreign direct investment (FDI) in the country more than doubling to about $ 4.5 billion in December 2015. In December 2014, India had received $2.16 billion. Meanwhile, participants are closely monitoring the key US economic data due to be released today. On the global front, Asian markets were exhibiting mixed trend at this point of time as participants closely watch US jobs report, which is likely to provide further cues on the Federal Reserve's monetary policy outlook. Back home, buying in metal counters too supported the sentiments on a report of MIP notification. The broader indices too were going neck-to-neck with benchmarks, while the market breadth on the BSE was positive; there were 1,402 shares on the gaining side against 921 shares on the losing side while 126 shares remain unchanged.

The BSE Sensex is currently trading at 24544.56, up by 206.13 points or 0.85% after trading in a range of 24345.79 and 24606.00. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.35%, while Small cap index up by 0.85%.

The top gaining sectoral indices on the BSE were Metal up by 2.08%, Bankex up by 1.68%, Materials up by 1.60%, Finance up by 1.49% and Healthcare up by 1.47%, while Oil & Gas down by 0.11% and Energy down by 0.06% were the only losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.22%, Tata Motors up by 2.73%, Cipla up by 2.50%, SBI up by 2.33% and Hero MotoCorp up by 2.29%. On the flip side, GAIL India down by 2.45%, Maruti Suzuki down by 1.70%, Adani Ports &Special down by 1.47%, Reliance Industries down by 0.26% and ONGC down by 0.14% were the top losers.

Meanwhile, something which can disturb the government and Reserve Bank of India’s (RBI) assumptions and calculations, the Consumer Confidence and Inflation Expectation Survey of Households for December 2015 conducted by RBI has said that Indian households expect inflation at over 10 percent in the year ahead, twice as much as RBI's retail inflation target of 5 percent by March 2017.

The survey providing an assessment of respondents’ perceptions on general economic conditions and own financial situation during the current period and a year ahead stated that Indian households expect inflation at 10.5 percent in the next one year and 10.3 percent each for current and next three months. In terms of qualitative response, the proportion of respondents expecting price rise by ‘more than current rate’ for prices in general as well as prices in all product groups (except cost of services) decreased marginally, while in terms of quantitative responses, common respondents’ expect similar level of inflation as their current inflation perceptions, for three-month ahead period based on their own consumption and buying experiences.

The survey shows that self-employed, retired persons and daily workers have comparatively higher inflation expectations for three month ahead period based on median inflation rates. The survey covered inflation expectations of 4,828 urban households' individual consumption basket across 16 cities and among them a majority of the respondents -- 90 percent -- expect prices to increase over the next three months and a year ahead.

The separate latest Consumer Confidence Survey said that current Situation Index (CSI) remained unchanged at its level as in the last quarter (September 2015). Future Expectations Index (FEI) increased fractionally on account of increase in positive perceptions on economic conditions, income and employment in the current round of survey as compared to September 2015 round. Though, the optimism regarding increase in future income (one-year ahead) is higher with net response improving by 2 percentage points as compared with September 2015 round of survey. However, the respondents reported increase in negative perceptions on spending during current period as compared to one-year ago and one-year ahead as compared to current situation. Employment outlook for one-year ahead as well as current scenario as compared to previous year, improved in this round, also the current sentiments on price levels as compared to one-year ago showed a marginal improvement.

The CNX Nifty is currently trading at 7468.85, up by 64.85 points or 0.88% after trading in a range of 7406.65 and 7485.00. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 8.41%, Hindalco up by 4.08%, PNB up by 3.14%, Axis Bank up by 3.00% and Tata Motors up by 2.93%. On the flip side, GAIL India down by 2.70%, Adani Ports &Special down by 1.62%, Maruti Suzuki down by 1.32%, Coal India down by 0.57% and Power Grid down by 0.41% were the top losers.

Asian markets were trading mostly in green; KOSPI Index rose 1.53 points or 0.08% to 1,917.79, FTSE Bursa Malaysia KLCI gained 5.86 points or 0.35% to 1,662.63, Jakarta Composite surged 108.86 points or 2.33% to 4,774.68 and Hang Seng was up by 121.8 points or 0.63% to 19,304.89.

On the flip side, Nikkei 225 declined 225.4 points or 1.32% to 16,819.59, Taiwan Weighted decreased 68.24 points or 0.84% to 8,063.00 and Shanghai Composite was down by 2.74 points or 0.1% to 2,778.28.