Benchmarks trade slightly in green in late morning session

Indian equity benchmarks continued to trade slightly in green in late morning session on account of buying in frontline blue chip counters amid strong data on domestic front. The Indian economy maintaining its growth momentum remained the world’s fastest growing major economy in the July-September quarter. Data released by the Central Statistics Office (CSO) showed the economy grew an annual 7.3 percent in the July-September quarter, marginally faster than previous quarter’s expansion of 7.1 percent, while it grew 7.6 percent in the July-September 2015-16. Some support was also witnessed with the growth in eight core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, which comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP), accelerated to 6.6% in October 2016 compared to 3.2% in the corresponding month last year on the back of robust refinery and steel output. Investors however maintained cautious approach in reaction to news of OPEC’s agreement to cut production. OPEC ministers revealed the cartel has agreed to reduce production by about 1.2 million barrels to 32.5 million barrels a day. Following the announcements, the price for Brent crude futures, the international benchmark for oil prices, shot up over 10 percent. Traders were seen piling up positions in FMCG, Consumer Durables and Capital Goods stocks, while selling was witnessed in Metal, IT and TECK sector stocks. In scrip specific development, shares of Oil Marketing Companies (OMCs) like Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) were trading under pressure after crude oil prices surged in overseas markets following a deal among the OPEC members to cut output.

On the global front, Asian shares were trading in green as regional manufacturing surveys beat expectations. A Monetary Policy Committee member of the People’s Bank of China (PBOC) stated that China’s economy faces risks to growth next year from an expected slowdown in the property market. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,200 and 26,700 levels respectively. The market breadth on BSE was negative in the ratio of 1046:1059, while 106 scrips remained unchanged.

The BSE Sensex is currently trading at 26706.57, up by 53.76 points or 0.20% after trading in a range of 26608.96 and 26769.32. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.24%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were FMCG up by 0.45%, Consumer Durables up by 0.29% and Capital Goods up by 0.09%, while Metal down by 0.49%, IT down by 0.46%, TECK down by 0.44%, Power down by 0.41% and Bankex down by 0.39% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 3.06%, ONGC up by 2.97%, Cipla up by 2.35%, Reliance Industries up by 1.55% and Lupin up by 1.39%.

On the flip side, Asian Paints down by 2.74%, Power Grid down by 1.49%, Tata Motors down by 1.30%, Adani Ports & Special Economic Zone down by 0.90% and ICICI Bank down by 0.89% were the top losers.

Meanwhile, the Indian economy maintaining its growth momentum remained the world's fastest growing major economy in the July-September quarter. Data released by the Central Statistics Office (CSO) showed the economy grew an annual 7.3 percent in the July-September quarter, marginally faster than previous quarter's expansion of 7.1 percent, while it grew 7.6 percent in the July-September 2015-16. The rise was on the back of healthy growth in agriculture, which grew an annual 3.3 percent during Q2 compared to 1.8 percent expansion in the previous quarter. Manufacturing sector growth slowed to 7.1% in July-September compared to 9.1% expansion in April-June quarter.

As per CSO data, the GDP at constant (2011-12) prices in Q2 of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in Q2 of 2015-16, showing a growth rate of 7.3 percent.  Quarterly GVA at Basic Price at constant (2011-12) prices for Q2 of 2016-17 is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore in Q2 of 2015-16, showing a growth rate of 7.1 per cent over the corresponding quarter of previous year.

Quarterly GVA at basic prices for Q2 of 2016-17 from ‘agriculture, forestry and fishing’ sector grew by 3.3 percent as compared to growth of 2.0 percent in Q2 2015-16. Quarterly GVA at basic prices for Q2 of 2016-17 from ‘mining and quarrying’ sector declined by (-) 1.5 percent as compared to growth of 5.0 percent in Q2 of 2015-16. Also, the Quarterly GVA at basic prices for Q2 of 2016-17 from ‘manufacturing’ sector grew by 7.1 percent as compared to growth of 9.2 percent in Q2 of 2015-16. Quarterly GVA at basic prices for  Q2 of 2016-17 from  ‘Electricity, Gas, water supply and other utility services’  sector  grew by 3.5 percent as compared to growth of 7.5 percent in Q2 of 2015-16.  While, Quarterly GVA at basic prices for Q2 of 2016-17 from ‘Construction’ sector grew by 3.5 percent as compared to growth of 0.8 percent in Q2 of 2015-16.

GDP at current prices in Q2 of 2016-17 is estimated at Rs 36.43 lakh crore, as against Rs 32.49 lakh crore in Q2 of 2015-16, showing a growth rate of 12.1 percent. GVA at basic price at current prices in Q2 of 2016-17, is estimated at Rs 33.42 lakh crore, as against Rs 30.02 lakh crore in Q2 of 2015-16, showing an increase of 11.3 percent.

Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 21.78 lakh crore in Q2 of 2016-17 as against Rs 19.37 lakh crore in Q2 of 2015-16.  At constant (2011-12) prices, the PFCE is estimated at Rs 16.26 lakh crore in Q2 of 2016-17 as against Rs 15.11 lakh crore in Q2 of 2015-16. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore in Q2 of 2016-17 as against Rs 4.27 lakh crore in Q2 of 2015-16. At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore in Q2 of 2016-17 as against Rs 3.33 lakh crore in Q2 of 2015-16. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 9.86 lakh crore in Q2 of 2016-17 as against Rs 10.19 lakh crore in Q2 of 2015-16. At constant (2011-2012) prices, the GFCF is estimated at Rs 8.58 lakh crore in Q2 of 2016-17 as against Rs 9.09 lakh crore in Q2 of 2015-16.

The CNX Nifty is currently trading at 8229.40, up by 4.90 points or 0.06% after trading in a range of 8202.10 and 8250.80. There were 20 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 3.44%, GAIL India up by 3.18%, ONGC up by 2.39%, Cipla up by 2.26% and Reliance Industries up by 1.78%.

On the flip side, BPCL down by 3.75%, Asian Paints down by 2.83%, Power Grid down by 1.82%, Tech Mahindra down by 1.69% and Tata Motors down by 1.32% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 3.28 points or 0.17% to 1,986.76, FTSE Bursa Malaysia KLCI increased 8.08 points or 0.5% to 1,627.20, Shanghai Composite increased 15.64 points or 0.48% to 3,265.67, Taiwan Weighted increased 21.89 points or 0.24% to 9,262.60, Jakarta Composite increased 43.56 points or 0.85% to 5,192.47, Hang Seng increased 113.59 points or 0.5% to 22,903.36 and Nikkei 225 increased 223.38 points or 1.22% to 18,531.86.