Indian benchmarks continue weak trade in noon session

The Indian equity benchmarks continue to languish in the red in noon session amid weak global cues and selling in several front line stocks. Sentiments remained down-beat with the report indicating that India's economy lost momentum in the final three months of 2016 after Prime Minister Narendra Modi's ban on high-value notes hurt consumption and businesses. Having posted growth of above 7% for six consecutive quarters, India's gross domestic product is expected to have expanded just 6.5% in the October-December quarter - the weakest in nearly three years. Besides, discouraging earnings by some blue-chip companies too weighed on sentiments. However, losses remained capped with report that India is emerging as the sweet spot along with neighbour China to rev up the global economic growth at the World Economic Forum (WEF) Annual meet in Davos. Along with China, India was also applauded as a major driving force for world growth with leaders and economists emphasizing the need for increased regional cooperation.

On the global front, Asian markets were trading mostly lower on Friday as investors turned jittery ahead of US President-elect Donald Trump's swearing-in ceremony later in the day. The caution overshadowed better-than-expected China’s fourth quarter GDP growth and Fed chair Janet Yellen taking a less hawkish stance on the rate hike. The National Bureau of Statistics said that China's gross domestic product expanded 6.8 percent in the fourth quarter of 2016 from a year earlier. 

Back home, stocks from FMCG and Realty counters were supporting the markets, while those from Banking, Consumer Durables and PSU counters were adding to the underlying cautious undertone. In scrip specific development, MindTree declines after the company reported 26.72% fall in its consolidated net profit at Rs 103.10 crore for the quarter ended December 31, 2016 as compared to Rs 140.70 crore for the same quarter in the previous year. On the other hand, Yes Bank rose after the bank reported 30.62% rise in its net profit at Rs 882.63 crore for the quarter ended December 31, 2016 as compared to Rs 675.74 crore for the same quarter in the previous year.

The market breadth remained pessimistic, as there were 1091 shares on the gaining side against 1225 shares on the losing side, while 153 shares remained unchanged.

The BSE Sensex is currently trading at 27207.67, down by 100.93 points or 0.37% after trading in a range of 27176.32 and 27264.41. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mix; the BSE Mid cap index was down by 0.20%, while Small cap index up by 0.02%.

The only gaining sectoral indices on the BSE were FMCG up by 0.33% and Realty up by 0.03%, while Bankex down by 0.84%, Consumer Durables down by 0.81%, PSU down by 0.77%, Metal down by 0.64% and Oil & Gas down by 0.61% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.20%, Cipla up by 1.10%, Hindustan Unilever up by 0.94%, Asian Paints up by 0.83% and HDFC Bank up by 0.66%. On the flip side, Axis Bank down by 5.38%, ICICI Bank down by 1.74%, Power Grid down by 1.39%, ONGC down by 1.09% and Tata Motors down by 0.97% were the top losers.

Meanwhile, emerging as a sweet spot at the World Economic Forum (WEF) Annual meet in Davos, India along with neighbouring country China are set to accelerate world economic growth. India was also commended as a major driving force along with China for world growth with leaders and economists stressing the need for increased regional cooperation.

As questions raised about the future of globalisation at the WEF meet, leaders shifted their narration of Asia to boost the global growth amid darkening prospects for trade worldwide. Interestingly, Indian leaders listed out demonetisation as a measure owed to people in the fight against black money. Against the backdrop of rising uncertainties, business leaders and economists felt that India and China have a great role to play in taking forward the Asian growth story by engaging in regional cooperation and eventually boost the global trade.

Veteran banker and New Development Bank President K V Kamath has said that ‘new normal’ is emerging where many countries would prioritise an ‘inward look’ at their national policies even as India remains in a comfortable position. He also said that at present India and China contribute a big chunk to the global growth and added that India is in a ‘sweet spot’ as the country absorbs investments in infrastructure, manufacturing and areas driving the consumer sector. Reflecting the hopefulness over the two leading economies, Malaysia's Minister for International Trade and Industry Mustapa Mohamed has said that India and China are very important in taking forward the Asian growth story.

Meanwhile, a delegation of more than 100 individuals, including ministers, government officials and business leaders, are in attendance at the WEF annual meet which has gathered under the theme of Responsive and Responsible Leadership. During a panel discussion on the theme of India's turn to transform, discussions touched upon the fight against corruption and black money, including demonetisation. WEF, government think-tank NITI Aayog, the World Intellectual Property Organisation and the Cornell University have joined hands to develop an India Innovation Index to measure the performance of Indian states. 

The CNX Nifty is currently trading at 8410.45, down by 24.65 points or 0.29% after trading in a range of 8397.05 and 8423.65. There were 16 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.38%, Bharti Airtel up by 2.07%, Yes Bank up by 1.80%, Ultratech Cement up by 1.60% and Grasim Industries up by 1.51%. On the flip side, Axis Bank down by 5.38%, Tata Motors - DVR down by 2.13%, ICICI Bank down by 1.78%, Bharti Infratel down by 1.41% and Power Grid down by 1.34% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 0.57%, Jakarta Composite fell 0.59%, KOSPI Index shed 0.2% and FTSE Bursa Malaysia KLCI was down by 0.08%. On the flip side, Shanghai Composite increased 0.69%, Taiwan Weighted added 0.14% and Nikkei 225 was up by 0.5%.