Benchmarks manage to trade in green in late afternoon session

Indian equity benchmarks traded volatile in late afternoon session but managed to trade in green as industry body, Assocham stated that the steps announced by Prime Minister Narendra Modi in his address to the nation on New Year’s Eve are extremely positive for the Indian economy and the focus should now be on effective implementation of these schemes to drive economic growth. It also said that schemes like interest subsidy on loans for low cost housing together with impetus to affordable housing will provide much needed help to vulnerable sections of society and revive consumer confidence amid largest, but poorest socio-economic group.

On the global front, European markets were trading in green as oil prices climbed above $54 a barrel and a private survey showed China's factory activity rose more than expected in December, with output reaching a near six-year high. Investors were trading confidently after solid manufacturing activity data in Europe and China. The data showed that French inflation reaching its highest level since May 2014. French consumer prices increased 0.8 percent year-on-year, driven essentially by an increase in energy prices. Asian markets were trading in green as most markets resumed trading after a long holiday weekend.

Back home, in scrip specific development, Tata Motors was trading in green on reporting 2 percent increase in total sales at 40,944 units in December 2016, as against 39,973 units sold in the year ago period.

The BSE Sensex is currently trading at 26660.11, up by 64.66 points or 0.24% after trading in a range of 26488.37 and 26693.57. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.81%, Oil & Gas up by 1.95%, PSU up by 1.47%, Power up by 0.90% and Capital Goods up by 0.76%, while TECK down by 0.06% and IT down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.26%, Axis Bank up by 1.48%, Coal India up by 1.28%, GAIL India up by 1.26% and ITC up by 1.08%. On the flip side, Hero MotoCorp down by 0.95%, Bharti Airtel down by 0.80%, Tata Steel down by 0.78%, Infosys down by 0.68% and Tata Motors down by 0.36% were the top losers.

Meanwhile, in the wake of a number of complaints from consumers who are being forced to pay service charge in the range of 5-20 per cent, in lieu of tips, irrespective of the kind of service provided to them, the Department of Consumer Affairs (DCA) has said that service charges billed by restaurants are optional and could be paid only if the customer is satisfied with the service.

The DCA said that the Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and a consumer can make a complaint to the appropriate consumer forum against such unfair trade practices.

In this regard, the department has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also asked to advise the hotels and restaurants to clearly display information at the appropriate place in the hotels and restaurants that the service charges are discretionary and that a customer dissatisfied with the services can have it waived off.

The CNX Nifty is currently trading at 8200.60, up by 21.10 points or 0.26% after trading in a range of 8148.60 and 8214.75. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were BHEL up by 2.37%, Power Grid up by 2.18%, BPCL up by 2.03%, Indusind Bank up by 1.97% and Yes Bank up by 1.91%. On the flip side, Idea Cellular down by 1.47%, Bharti Infratel down by 1.15%, Hero MotoCorp down by 0.98%, Tata Steel down by 0.98% and ACC down by 0.75% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 17.81 points or 0.88% to 2,043.97, Taiwan Weighted increased 19.38 points or 0.21% to 9,272.88, Shanghai Composite increased 32.28 points or 1.04% to 3,135.92 and Hang Seng increased 149.84 points or 0.68% to 22,150.40. On the flip side, Jakarta Composite decreased 27 points or 0.51% to 5,269.71 and FTSE Bursa Malaysia KLCI decreased 8.88 points or 0.54% to 1,632.85.

All the European markets were trading in green; UK’s FTSE 100 increased 22.66 points or 0.33% to 6,954.21, Germany’s DAX increased 28.39 points or 0.24% to 11,626.72 and France’s CAC increased 28.59 points or 0.6% to 4,764.07.