Benchmarks continue to trade modestly in red

Indian equity benchmarks continued to trade modestly in red in noon session, on account of selling in frontline blue chip counters despite positive global cues. Sentiments remained down-beat after the 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. Meanwhile, 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 demonetization in the third quarter and even some part of the fourth quarter. Besides, the losses in banking, Power, Realty and Metal stocks also aided to pessimistic milieu. The downside was however capped after data showed that 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 in green as a deal by OPEC to reduce output for the first time in eight years boosted global energy shares, while US economy showed signs of strength. Back home, in scrip specific development, TCS slid half around a percent after two shareholder advisory firms favored the removal of ousted chairman Cyrus Mistry from the board of the country's largest software services company.

The BSE Sensex is currently trading at 26624.75, down by 28.06 points or 0.11% after trading in a range of 26608.96 and 26769.32. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.69%, while Small cap index was down by 0.20%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.91% and FMCG up by 0.50%, while Bankex down by 1.00%, Power down by 0.94%, Realty down by 0.86%, Metal down by 0.84% and PSU down by 0.58% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 2.75%, ONGC up by 2.73%, Dr. Reddys Lab up by 1.16%, Cipla up by 1.15% and Lupin up by 1.05%. On the flip side, Power Grid Corpn. down by 2.74%, Asian Paints down by 2.54%, ICICI Bank down by 2.08%, Adani Ports &Special down by 1.71% and Tata Motors down by 1.62% 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 8207.30, down by 17.20 points or 0.21% after trading in a range of 8202.10 and 8250.80. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.41%, Eicher Motors up by 2.34%, ONGC up by 2.27%, Bharti Infratel up by 1.85% and Reliance Industries up by 1.31%. On the flip side, Power Grid Corpn. down by 3.02%, BPCL down by 2.79%, Asian Paints down by 2.64%, ICICI Bank down by 2.37% and Tech Mahindra down by 2.26% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 0.27 points or 0.01% to 1,983.75, FTSE Bursa Malaysia KLCI increased 7.59 points or 0.47% to 1,626.71, Shanghai Composite increased 14.5 points or 0.45% to 3,264.53, Taiwan Weighted increased 22.82 points or 0.25% to 9,263.53, Jakarta Composite increased 51.88 points or 1.01% to 5,200.79, Hang Seng increased 93.85 points or 0.41% to 22,883.62 and Nikkei 225 increased 204.64 points or 1.12% to 18,513.12.