Benchmarks trade slightly in red on weak core sector data

Extending their previous session’s southward journey, Indian equity benchmarks have made a negative start and are trading slightly in red in early deals on Tuesday, as traders remain concerned with report that global private equity players pulled out a record $10.3 billion of their investments in 2016 from domestic markets. Weak core sector data too dampened sentiments with India’s core sector growth slowing to 4.9 percent in November from 6.6 percent in the previous month as crude oil and natural gas production declined. Market participants remained on sidelines ahead of the GST Council meet today, to arrive at a consensus on contentious issues, including dual administrative control and inter-state supply.

Asian markets were trading mostly in green at this point of time led by the Chinese market which gained around three fourth of a percent, as the country’s factories and services both closed out 2016 on relatively robust notes. Back home, broader market outperformed the headline indices with BSE Midcap and BSE Smallcap gaining around half a percent. Shares of logistics companies remained in focus ahead of the GST Council meet today. Sugar stocks remained in limelight on report from domestic rating agency ICRA that Sugar prices are expected to remain firm in the near term due to tight stock position following 9 per cent decline in production and steady growth in consumption.

The BSE Sensex is currently trading at 26547.66, down by 47.79 points or 0.18% after trading in a range of 26488.37 and 26638.91. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.22%, Oil & Gas up by 1.22%, PSU up by 0.94%, Power up by 0.63% and Realty was up by 0.63%, while IT down by 0.75%, TECK down by 0.70%, FMCG down by 0.16% and Auto was down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.47%, Reliance Industries up by 0.73%, Axis Bank up by 0.68%, Cipla up by 0.60% and ICICI Bank was up by 0.60%. On the flip side, Infosys down by 1.76%, Hero MotoCorp down by 1.33%, Bharti Airtel down by 1.06%, HDFC down by 1.03% and Wipro was down by 1.00% were the top losers.

Meanwhile, Union Finance Minister Arun Jaitley has expressed hope that Goods and Services Tax (GST) will be implemented in 2017 and a digitised economy will be future of India. He also said that the last year was a very successful year for India as the country continued to remain the fastest economy in the world. He also expressed optimism that Indian economy will continue to be one of the fastest growing economies in 2017 as well.

Jaitley in his New Year message to the nation also said that the long-awaited GST, once implemented, would turn Asia's third-largest economy into a single market for the first time, broaden the tax base and make life simpler for businesses that now pay a host of federal and state levies. Citing that the activity of demonetisation was completed in a peaceful manner and well supported by citizens, Jaitley said that a large amount of money, including black money, has come back into the banking system and it will increase banks' ability to lend more. He added that they are now keeping the inflation under control and consequently they have seen interest rates coming down.

The finance minister also asserted that the process of 'remonetisation' has progressed extremely well and it is certain that in the days to come it will be completed. Jaitley's statement came a day after Prime Minister Modi announced major tax rebates for farmers, small traders, senior citizens and women. He also urged the nation's banking system to work for the poor and the marginalised and complimented the people for joining and supporting the government's cleansing drive against corruption and black money.

The CNX Nifty is currently trading at 8168.70, down by 10.80 points or 0.13% after trading in a range of 8148.60 and 8196.70. There were 29 stocks advancing against 21 stocks declining on the index, while one stock remained unchanged.

The top gainers on Nifty were Yes Bank up by 1.69%, BHEL up by 1.39%, Power Grid up by 1.20%, Hindalco up by 0.88% and SBI up by 0.86%. On the flip side, Infosys down by 1.68%, Hero MotoCorp down by 1.38%, Bharti Airtel down by 1.17%, Bharti Infratel down by 1.13% and Idea Cellular down by 1.07% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted rose 9.23 points or 0.1% to 9,262.73, KOSPI Index increased 13.03 points or 0.64% to 2,039.19, Shanghai Composite jumped 21.93 points or 0.71% to 3,125.56 and Hang Seng was up by 108.28 points or 0.49% to 22,108.84.

On the flip side, Jakarta Composite decreased 11.28 points or 0.21% to 5,285.43 and FTSE Bursa Malaysia KLCI was down by 9.05 points or 0.55% to 1,632.68.