Markets trade flat with negative bias in range-bound session of trade

In the extremely range-bound session of trade, Indian equity benchmarks altering between positive and negative territory, were now trading flat with bit of negative bias, as investors and traders were adopting a cautious approach, amid weak global cues. The demonetisation effect continue to weigh on the bourses as it started affecting not just demand but also the supply chain with cash crunch hitting the farmers. Prices of few key commodities have fallen considerably since the move was announced amid drying up of demand. Also, fears have risen regarding production of the key commodities as farmers are not getting enough cash to buy seeds for winter crops. Besides, sharp plunge in the rupee against the dollar and exception of strong foreign capital outflows after hints of rate hike in December by US Federal Reserve chairwoman Janet Yellen also dampened the market sentiments. The rupee was trading at 68.11 a dollar, down 0.36% from its previous close of 67.83. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) have already sold equity shares worth over $1 billion in the past few trading days. However, investors got some comfort with NITI Aayog Vice-Chairman Arvind Panagariya’s statement that India can become a $10 trillion economy in the next 15 years, like China did in last one and a half decade. He said there is much scope for India to benefit from Chinese experience in the manufacturing sector and make the country into a robust & steady economy. Meanwhile, IT stocks continue to reel under pressure for third straight day after Nasscom revised IT sector’s growth forecast downwards to 8-10 per cent this year, as its biggest members such as TCS, Wipro, Cognizant and Infosys struggle to grow faster because of an uncertain environment. Shares of gems and jewellery companies extended losses for the seven straight trading session after the Government of India announced its decision to cancel the legal tender character of high denomination bank notes of Rs 500 and Rs 1,000 issued by the central bank.

On the global front, Asian markets were trading mostly lower on Friday, with the Japanese market leading gains on the back of a relatively weaker yen, helping shares of the country's big exporters. Sentiments took a hit after the US Federal Reserve chief indicated that the US may hike interest rates next month. Further, US markets closed modestly higher on Thursday, with major averages finishing the session near their best levels of the day, following the release of a batch of largely upbeat US economic data.

Back home, stocks from Power, Oil & Gas and PSU counters were supporting the markets, while those from Consumer Durables, Metal and FMCG counters were adding to the underlying cautious undertone. In scrip specific development, Deepak Fertilisers & Petrochemicals Corporation has slipped after the company reported 4.8% year on year fall in net profit at Rs 26.96 crore for the quarter ended September 2016, due to lower operational income. On the other hand, Petronet LNG rallied after the company reported robust 82% year on year jump in net profit at Rs 460 crore for the quarter ended September 30, 2016.

The market breadth remained optimistic as there were 1130 shares on the gaining side against 1115 shares on the losing side, while 124 shares remained unchanged.

The BSE Sensex is currently trading at 26194.16, down by 33.46 points or 0.13% after trading in a range of 26117.82 and 26283.36. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in mixed; the BSE Mid cap index was up by 0.42%, while Small cap index down by 0.11%.

The top gaining sectoral indices on the BSE were Power up by 1.18%, Oil & Gas up by 0.97%, PSU up by 0.82%, Auto up by 0.31% and Realty up by 0.11%, while Consumer Durables down by 1.93%, Metal down by 1.42%, FMCG down by 0.87%, Bankex down by 0.37% and TECK down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.96%, Sun Pharma up by 1.95%, Cipla up by 1.73%, Mahindra & Mahindra up by 1.39% and Bharti Airtel up by 1.32%. On the flip side, Tata Steel down by 2.25%, GAIL India down by 2.07%, ITC down by 1.59%, Tata Motors down by 1.22% and TCS down by 0.95% were the top losers.

Meanwhile, NITI Aayog Vice-Chairman Arvind Panagariya has expressed his confidence that the size of the Indian economy can grow to $10 trillion over the next 15 years, as China did in last one and a half decade.

Panagariya has said that India started off to a rapid growth a little later than China, but now has the potential to accomplish in the next 15 years. He pointed that what China has accomplished in last one and a half decade is very impressive as its economy has gone from $ 2 trillion 15 years ago to $10 trillion now.  Describing India and China as 'two rare bright spots' in the context of a global economic slowdown, Panagariya stated that there is much scope for India to benefit from the Chinese experience in manufacturing sector, towards transforming India into a modern urban economy.

On bilateral co-operation, he added that with China promoting out-bound investment and India seeking foreign capital and technology, which should enable us to take advantage of the synergies and put in place a dynamic framework to strengthen bilateral investment relationships. He also suggested that the Dr APJ Abdul Kalam Centre can have a specialized India-China  Policy Research Group to work closely with NITI Aayog for the next India-China  Strategic Economic Dialogue.

The CNX Nifty is currently trading at 8076.25, down by 3.70 points or 0.05% after trading in a range of 8048.30 and 8104.65. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were NTPC up by 4.25%, Sun Pharma up by 2.62%, Aurobindo Pharma up by 1.93%, HCL Tech up by 1.70% and Hero MotoCorp up by 1.56%. On the flip side, Hindalco down by 2.50%, GAIL India down by 2.24%, Tata Steel down by 1.65%, Bharti Infratel down by 1.63% and Grasim Industries down by 1.52% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite decreased 0.73%, Shanghai Composite slipped 0.21%, FTSE Bursa Malaysia KLCI shed 0.37% and KOSPI Index was down by 0.24%. On the flip side, Taiwan Weighted gained 0.15%, Hang Seng added 0.25% and Nikkei 225 was up by 0.82%.