Indian markets settle with modest gain; Nifty ends above 8400 mark

Monday’s trading session was clearly of consolidation as the Indian frontline indices appeared a bit fatigued and remained in directionless trajectory throughout the day. However, the benchmarks managed to end the session in positive territory on pinning hopes that the deadlock over the GST bill will finally end. Market witnessed bargain-hunting as well as short covering throughout the session amid lack of direction, with caution gripped by the currency exchange, the upcoming Union Budget, General Anti-Avoidance Rule (GAAR), impending state elections, and flux in US policy. Sentiments got some support with report that 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. Further, Investors’ morale remained upbeat as Moody's Investors Service and its Indian affiliate ICRA said 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 agency also believes that the government will likely achieve its fiscal deficit target of 3.5% of GDP for the current fiscal year ending March 31, 2017. However, gains remained capped on the report that India's wholesale inflation firmed up in December led by higher inflation in non-food products. Data released by commerce and industry ministry showed WPI inflation at 3.39% in December compared with 3.15% in November. WPI inflation in manufactured products, which has a 64.97% weight in the index, rose to 3.6% from 3.2% in the previous month, while Food inflation turned negative as food prices fell 0.7% in December 2016 from a year ago against a 1.54% rise in the previous month. Meanwhile, Realty stocks gained traction after market regulator SEBI said Indian mutual funds will be allowed to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), while Oil marketing companies such as IOC and BPCL rose after they hiked 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. Also, public sector banks (PSBs) too came into limelight on report that the Finance Ministry is likely to finalize capital infusion plan for PSBs this week.

On the global front, Asian markets ended mostly in red on Monday as investors turned jittery over concerns Britain faces a 'hard' exit from the European Union, sending the pound to its lowest levels - bar a 'flash crash' in October - in 32 years.  Japanese stocks declined after 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. Further, Chinese markets ended lower, 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, European markets rose in early trade, led higher by banks stocks, with Britain's blue chip index finishing at an all-time high after extending a record winning streak to 14 days.

Back home, the benchmark got off to a soft start as the indices showed signs of consolidation in early trade, tracking weak trade in other regional markets. Thereafter, the key indices oscillated in an extremely tight range through the session as market participants remained on the sidelines lacking conviction amid the persistent worries over goods and services tax (GST). The all-powerful GST Council, headed by Jaitley, has meat for the ninth time. The last four meetings ended in a deadlock with states seeking sole powers to control assessee with annual turnover of up to Rs 1.5 crore. Eventually, the NSE’s 50-share broadly followed index Nifty, got buttressed by over one tens of a percent to settle above the crucial 8,400 support level, while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated over fifty points and closed above the psychological 27,250 mark. On the BSE sectoral space, Realty counter remained the top gainer in the space with over a percent gains followed by Consumer Durables index which ended with gain of around a percent. Good buying was also observed in Banking, Metal and Auto counters. On the flipside, IT counter languished at the bottom of the table with over a percent, while the Oil & Gas and FMCG sectors also settled with moderate cuts.

The market breadth remained optimistic as there were 1545 shares on the gaining side against 1215 shares on the losing side, while 194 shares remained unchanged.

Finally, the BSE Sensex surged 50.11 points or 0.18% to 27288.17, while the CNX Nifty rose 12.45 points or 0.15% to 8,412.80.

The BSE Sensex touched a high and a low of 27335.08 and 27172.68, respectively and there were 17 stocks on gainers side against 13 stocks on the losers side on the index.

The broader indices made a positive closing; the BSE Mid cap index ended higher 0.27%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Realty up by 1.61%, Consumer Durables up by 0.99%, Bankex up by 0.98%, Metal up by 0.97% and Auto up by 0.56%, while IT down by 1.02%, TECK down by 0.81%, Oil & Gas down by 0.37% and FMCG down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.69%, Tata Motors up by 2.31%, Adani Ports & SEZ up by 2.11%, SBI up by 1.93% and Hero MotoCorp up by 1.54%. On the flip side, Infosys down by 1.99%, ONGC down by 1.32%, Reliance Industries down by 1.21%, Sun Pharma down by 1.17% and GAIL India down by 0.92% were the top losers.

Meanwhile, India’s exports continued its uptrend for the fourth straight month in December 2016 and registered a growth of 5.72% to $23.88 billion as compared to $22.59 billion in December 2015. In rupee term the exports was higher by 7.79% to Rs 162179.89 crore as compared to Rs 150461.57 crore in December 2015. Cumulative value of exports for the period April-December 2016-17 was $198.80 billion as against $197.33 billion, registering a positive growth of 0.75% over the same period last year. In Rupee term it was up by 4.37% to Rs 1333913.57 crore from Rs 1278004.37 crore.

Imports during December 2016, increased marginally by 0.46% to $34.25 billion as compared to $34.09 billion in December 2015, while in rupee terms it was 2.43% higher to Rs 232588.18 crore from Rs 227067.28 crore in December 2015. However, cumulative value of imports for the period April-December 2016-17 was $275.35 billion as against $297.41 billion, registering a negative growth of 7.42% over the same period last year. In Rupee term the cumulative imports was of Rs 1848099.10 crore, down by 4.05% from Rs 1926024.55 crore in the same period last year.

The trade deficit for April-December, 2016-17 was estimated at $76.54 billion, which was 23.51% lower than the deficit of $100.07 billion during April-December, 2015-16. Overall trade deficit for April- December 2016-17 is estimated at $33.74 billion, which is 36.78% lower in Dollar terms than the level of $53.37 billion during April-December 2015-16.

Oil imports during December 2016, were valued at $7.64 billion which was 14.61% higher than oil imports valued at $6.67 billion in the corresponding period last year. Oil imports during April-December, 2016-17 were valued at $60.92 billion which was 10.76% lower than the oil imports of $68.26 billion in the corresponding period last year.

Non-oil imports during December, 2016 were estimated at $26.60 billion which was 2.98% lower than non-oil imports of $27.42 billion in December, 2015. Non-oil imports during April-December 2016-17 were valued at $214.43 billion which was 6.42% lower than the level of such imports valued at $229.14 billion in April-December, 2015-16.

The CNX Nifty traded in a range of 8,426.70 and 8,374.40. There were 33 stocks in green against 18 stocks in red on the index.

The top gainers on Nifty were Tata Steel up by 2.95%, Adani Ports & SEZ up by 2.45%, Tata Motors up by 2.26%, SBI up by 2.19% and Bosch up by 2.02%. On the flip side, HCL Tech down by 2.57%, Tata Power down by 2.02%, Eicher Motors down by 1.99%, Infosys down by 1.88% and Sun Pharma down by 1.45% were the top losers.

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.