Strong trade continues in markets; Nifty regains 8,150 mark

Indian equity benchmarks continued to trade firm in noon session on fresh buying by funds and retail investors amid strong economic data. India's headline inflation rate based on the Consumer Price Index (combined) eased to 14 month low of 4.2% in October compared with 4.39% in September and 5% a year ago, raising hopes that the RBI (Reserve Bank of India) may cut monetary rate in its forthcoming monetary policy review next month. The country's wholesale inflation too softened to 3.39% in October from 3.57% in September.  Besides, firm global cues coupled with the appreciation in rupee value against the dollar added to the optimistic sentiments. Reversing its two-day fall, the Rupee recovered by 19 paise to 67.55 against the US Dollar on Wednesday on fresh selling of the American currency by banks and exporters. Meanwhile, exports continued to grow for the second month in a row, expanding by 9.59 percent to $ 23.51 billion in October on healthy growth in shipments of jewellery and engineering products. Though, imports too increased by 8.11 percent to $ 33.67 billion, leaving a trade deficit of $ 10.16 billion in the month under review.

On the global front, most of the Asian markets edged higher on Wednesday, with financial stocks tracking gains in the US, as investors added to their bets that President-elect Donald Trump’s policies would be good for global banks. A pause in both the sell-off in global bonds and sharp rise in the dollar, too supported markets sentiment.  Further, Japanese shares rose to a 9-1/2-month high as a weaker yen underpinned exporters and higher Japanese yields stoked bank shares. Meanwhile, crude oil prices shot up overnight, as members of the Organization of the Petroleum Exporting Countries hammered out the details of a proposed output cut, which helped shares of producers across Asia.

Back home, stocks from IT, Auto and Power counters were supporting the markets’ uptrend, while those from Consumer Durables, Metal and Capital Goods counters were adding to the underlying cautious undertone. In scrip specific development, Container Corporation of India has slipped after the company reported 31.87% fall in its net profit at Rs 157.84 crore for the quarter ended September 30, 2016 as compared to Rs 231.69 crore for the same quarter in the previous year. On the flip side, Tata Global Beverages rallied after the company reported 60% year on year growth in consolidated net profit at Rs 140 crore for the second quarter ended September 30, 2016.

The market breadth remained optimistic as there were 1237 shares on the gaining side against 1067 shares on the losing side, while 136 shares remained unchanged.

The BSE Sensex is currently trading at 26492.10, up by 187.47 points or 0.71% after trading in a range of 26326.89 and 26621.40. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.12%, while Small cap index up by 0.79%.

The top gaining sectoral indices on the BSE were IT up by 2.77%, TECK up by 2.42%, Auto up by 2.18%, Power up by 1% and Realty up by 0.32%, while Consumer Durables down by 1.84%, Metal down by 1.23%, Capital Goods down by 0.33% and Bankex down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.44%, TCS up by 3.93%, Infosys up by 3.38%, Power Grid up by 2.79% and Tata Motors up by 2.57%. On the flip side, Lupin down by 2.01%, Dr. Reddys Lab down by 1.94%, Coal India down by 1.67%, Tata Steel down by 1.36% and Cipla down by 1.13% were the top losers.

Meanwhile, snapping the rising trend and giving some respite, the PSU Oil Marketing Companies (OMCs) have cut the price of petrol and diesel by Rs 1.46 a litre and Rs 1.53 a litre respectively. The reduction in prices comes after a string of hikes that is six times since September and will be effective from midnight of November 15 and November 16.

Following the cut, the price of petrol in the National Capital will be Rs 65.93 per litre as against Rs. 67.62 a litre currently, whereas price of diesel will be Rs. 54.71 per litre compared with the Rs. 56.41 now. At the last revision on November 5, OMCs had hiked price of petrol and diesel by 89 paise per litre and 86 paise per litre respectively. Altogether, in the last six hikes, petrol price had gone up by Rs 7.53 per litre, while the three price increases totalled Rs 3.90 a litre for diesel.

According to IOC the country's largest fuel retailer, the reduce in prices is due to 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. It further added that the current level of international product prices of petrol and diesel and INR-USD exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision.

The CNX Nifty is currently trading at 8153.40, up by 44.95 points or 0.55% after trading in a range of 8100.50 and 8210.05. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 4.67%, TCS up by 3.98%, Eicher Motors up by 3.69%, Infosys up by 3.35% and Zee Entertainment up by 2.97%. On the flip side, Hindalco down by 2.86%, Kotak Mahindra Bank down by 2.47%, Lupin down by 2.14%, Dr. Reddys Lab down by 2.06% and Ambuja Cement down by 1.75% were the top losers.

Asian markets were trading mostly in green; KOSPI Index gained 0.82%, Taiwan Weighted increased 0.35%, Jakarta Composite surged 2.01%, Hang Seng rose 0.55% and Nikkei 225 was up by 1.15%. On the flip side, Shanghai Composite decreased 0.15% and FTSE Bursa Malaysia KLCI was down by 0.12%.