Post Session: Quick Review

Indian equity benchmarks traded in a narrow range and ended the session with moderate gains. The gains in Realty and Bankex stocks offset losses in IT and TECK stocks which were down on weak sentiments and after software services exporter Infosys cut its revenue outlook. Investors were caution ahead of Goods and Services Tax (GST) Council meeting scheduled today. Finance Minister Arun Jaitley will look to break the deadlock over distribution of powers between centre and states to administer GST, an issue that is holding up launch of the new national sales tax from April. The council has been deadlocked in the last four meetings, the last one being on January 4, with states seeking sole powers to control assessee with annual turnover of up to Rs 1.5 crore. The markets made a cautious start and traded near neutral lines in early deals taking support from Moody’s Investors Service and its Indian affiliate ICRA report that India will remain one of the fastest growing major economies globally in 2017, although GDP growth will moderate in the first half of the year, as the economy adjusts after demonetization. Moody's said that the government will likely remain committed to achieving its fiscal deficit target of 3.5% of GDP for the fiscal year ending March 31, 2017. Some support also came with buying interest in public sector banks on reports that the Finance Ministry is likely to finalize a capital infusion plan for public sector banks this week based on the request of various lenders affected by demonetization amid rising bad loans. Traders got encouragement with food articles inflation for the month remaining in negative, indicating a 0.7% fall in food prices in December as compared to 1.54% rise in the previous month. Also, the exports jumped for the fourth month to 5.7 per cent in December to $23.8 billion, the highest since March 2015. As many as 18 of the 30 exporting sectors registered growth.

On the global front, Asian markets closed in red, on worries that UK Prime Minister Theresa May might signal plans for a ‘hard Brexit’ in her speech on Tuesday. China’s main indices fell for the fifth straight session, led by tech stocks as investors grew gloomy about 2017 prospects following comments by the premier and official estimates suggesting slowing economic growth in big cities. In remarks reported by state media on Sunday, Premier Li Keqiang said China’s economy will face more pressure and problems in 2017, with changes in global politics and challenges to economic rules adding to uncertainty.

Back home, oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) closed in green followed by hike in petrol prices by 42 paise a litre on Sunday, the fourth increase in 6 weeks and diesel rate by Rs 1.03 a litre, the second hike in a fortnight. Select logistics companies like Snowman Logistics, Gateway Distripark, Gati, Sical Logistics and Patel Integrated closed in green ahead of a crucial meeting to break the deadlock over distribution of powers between the Centre and states to administer the GST.

The BSE Sensex ended at 27300.71, up by 62.65 points or 0.23% after trading in a range of 27172.68 and 27335.08. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.31%, while Small cap index was up by 0.59%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.65%, Bankex up by 1.15%, Consumer Durables up by 1.10%, Metal up by 0.94% and Auto up by 0.54%, while IT down by 0.97%, TECK down by 0.77% and Oil & Gas down by 0.46% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 2.54%, Tata Motors up by 2.25%, SBI up by 2.17%, Adani Ports & Special Economic Zone up by 2.16% and Hero MotoCorp up by 1.62%. (Provisional)

On the flip side, Infosys down by 1.86%, ONGC down by 1.24%, Reliance Industries down by 1.21%, Sun Pharma down by 1.13% and GAIL India down by 1.03% were the top losers. (Provisional)

Meanwhile, the global credit rating agency, Moody's Investors Service and its Indian affiliate, ICRA in its latest report said that India will remain one of the fastest growing major economies globally in 2017, although GDP growth will moderate in the first half of the year, as the economy adjusts after demonetisation. The rating agencies also said that after a temporary dampening effect on consumption and investment in the medium term, demonetisation will likely strengthen India's institutional framework by reducing tax avoidance, corruption and should support efficiency gains through a greater formalization of economic and financial activity.
The rating agency, Moody's said that the government will likely remain committed to achieving its fiscal deficit target of 3.5% of GDP for the fiscal year ending March 31, 2017. Further it also said that in an environment of lackluster global trade and with economies globally facing the increasing risk of protectionism, India's very large domestic markets provide a relative competitive advantage when compared to smaller and more trade-reliant economies.

On the issue of average CPI inflation, ICRA has said that the rate will decrease to 4.5% in 2017 from 4.9% in 2016. The rating agency anticipates India's growth of gross value added at basic prices to remain healthy in 2017. Further ICRA said that the focus on digital transactions and the introduction of a goods and services tax (GST) will likely reduce the competitiveness of the unorganised sector.

The CNX Nifty ended at 8418.70, up by 18.35 points or 0.22% after trading in a range of 8374.40 and 8426.70. There were 31 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 2.54%, Adani Ports & Special Economic Zone up by 2.33%, Tata Motors up by 2.23%, SBI up by 2.19% and Idea Cellular up by 1.67%. (Provisional)

On the flip side, HCL Tech down by 2.58%, Infosys down by 2.08%, Eicher Motors down by 2.07%, Tata Power down by 2.02% and Sun Pharma down by 1.45% were the top losers. (Provisional)
The European markets were trading in red; UK’s FTSE 100 decreased 3.81 points or 0.05% to 7,334.00, Germany’s DAX decreased 62.66 points or 0.54% to 11,566.52 and France’s CAC decreased 27.18 points or 0.55% to 4,895.31.

Asian equity markets ended in red on Monday, with Japanese shares slumping as the yen remained stronger against rivals on ‘hard Brexit’ fears and official data showing Japan's core machinery orders falling in November at their fastest pace in seven months. Private-sector machinery orders, excluding volatile ones for ships and those from electric power companies, fell a seasonally adjusted 5.1 percent in November from the previous month, reversing a 4.1 percent rise in the previous month. Chinese shares fell, led by tech stocks as investors grew gloomy about 2017 prospects following comments by the premier and official estimates suggesting slowing economic growth in big cities. Premier Li Keqiang said China's economy will face more pressure and problems in 2017, with changes in global politics and challenges to economic rules adding to uncertainty. Meanwhile, investors also looked forward to US President-elect Donald Trump's inauguration on Friday for any clarity on his economic plans, with the Obama administration urging Trump to ‘reach out’ to the growing faction of House Democrats who have pledged to boycott the ceremony after revelations of Russia's alleged meddling in the 2016 election.