Markets trade flat with negative bias; Nifty holds 8200 mark

In the extremely range-bound session of trade, Indian equity indices altering between green and red territory, were now trading flat with bit of negative bias as investors and foreign funds were adopting a cautious approach, after country’s economy grew lower than expected in the September quarter at 7.3%, as compared to 7.6% registered during the same period last fiscal year.  The data indicate that the economy may witness the heavy impact of demonetisation in the third quarter and even some part of the fourth quarter. Adding anxiety among investors, the private report indicated that Indian factory activity decelerated sharply last month after Prime Minister Narendra Modi's currency crackdown led to a rationing of cash and cooled domestic consumption, new orders and production. The Nikkei/Markit Manufacturing Purchasing Managers' Index fell to 52.3 in November from October's 54.4, its biggest month-on-month decline since March 2013. However, losses remained capped with the report that the combined index of eight core industries surged to its six months high at 6.6 percent compared to October 2015, led by steel, cement and petroleum refinery. In other economic development India's fiscal deficit in October stood at 79.3 per cent of budget estimates, against 83.9 per cent in September.

On the global front, Asian markets were trading higher on Thursday, with investor sentiment boosted by news that the Organization of Petroleum Exporting Countries (OPEC) reached a deal to cut output. OPEC agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted 'a big hit' and dropped a demand that arch-rival Iran also slashed output. The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years. Investors’ also cheered data that showed China's manufacturing sector continued to expand at faster rate in November. The National Bureau of Statistics said that China's manufacturing PMI score was 51.7 in November. That beat forecasts for 51.0 and was up from 51.2 in October.

Back home, stocks from FMCG and Consumer Durables counters were supporting the markets, while those from Banking, Power and Realty counters were adding to the underlying cautious undertone. In scrip specific development, Balkrishna Industries rallied after the company more than doubled its net profit at Rs 243 crore in the September quarter. Moreover, Wipro gained after the company signed an agreement for divestment of its EcoEnergy division viz. Wipro EcoEnergy, on slump sale basis, for a sale consideration of $70 million.

The market breadth remained pessimistic as there were 1038 shares on the gaining side against 1261 shares on the losing side, while 113 shares remained unchanged.

The BSE Sensex is currently trading at 26630.75, down by 22.06 points or 0.08% after trading in a range of 26608.96 and 26769.32. 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 0.67%, while Small cap index down by 0.18%.

The only gaining sectoral indices on the BSE were FMCG up by 0.46% and Consumer Durables up by 0.01%, while Bankex down by 0.89%, Power down by 0.88%, Metal down by 0.77%, Realty down by 0.71% and PSU down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 3.12%, ONGC up by 2.80%, Lupin up by 1.72%, Dr. Reddys Lab up by 1.37% and Cipla up by 1.14%. On the flip side, Asian Paints down by 2.81%, Power Grid down by 2.27%, ICICI Bank down by 2.08%, Tata Motors down by 1.75% and Adani Ports &Special down by 1.75% were the top losers.

Meanwhile, 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. However, Coal, crude oil and natural gas output declined during the month, while fertilisers and electricity production grew at a relatively low rate.

As per the data of Ministry of Commerce & Industry, the combined Index of Eight Core Industries stood at 188.1 in October, 2016, 6.6% higher compared to the index of October, 2015. Its cumulative growth during April to October, 2016-17 was 4.9%. Among eight core sectors, the Refinery Products having 5.94% weight showed an uptick move by increasing production 15.1% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 8.9% over the corresponding period of previous year. Steel having 6.68% weight surged 16.9% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 8.5% over the corresponding period of previous year.

Cement having 2.41% weight jumped 6.2% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 4.8% over the corresponding period of previous year. Electricity having 10.32% weight rose 2.8% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 4.7% over the corresponding period of previous year. Fertilizer having 1.25% weight increased 0.8% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 4.8% over the corresponding period of previous year.

On other hand, Crude Oil having 5.22% weight dropped 3.2% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 declined by 3.3% over the corresponding period of previous year. Natural Gas having 1.71% weight slipped 1.4% in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 declined by 4.0% over the corresponding period of previous year. Coal having 4.38% weight declined by 1.6% in October, 2016 over October, 2015, while its cumulative index during April to October, 2016-17 increased by 0.7% over corresponding period of previous year.

The CNX Nifty is currently trading at 8215.45, down by 9.05 points or 0.11% after trading in a range of 8202.10 and 8250.80. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 3.14%, Eicher Motors up by 2.77%, ONGC up by 2.23%, Bharti Infratel up by 1.77% and Reliance Industries up by 1.55%. On the flip side, BPCL down by 3.37%, Asian Paints down by 2.73%, Power Grid down by 2.55%, Tata Motors - DVR down by 2.20% and ICICI Bank down by 2.07% were the top losers.

All the Asian markets were trading in green, KOSPI Index increased by 0.01%, FTSE Bursa Malaysia KLCI was up by 0.5%, Shanghai Composite was higher by 0.4%, Taiwan Weighted gained 0.25%, Jakarta Composite gained 0.85%, Hang Seng increased 0.39% and Nikkei 225 surged by 1.12%.