Benchmarks continue to trade in red in noon session

Indian Benchmark indices continued to trade in red in noon session on account of profit booking in frontline line blue-chip counters. Sentiments remained downbeat with a private report that India’s economic growth is likely to remain muted in the first quarter of this calendar year with the GDP likely to grow at 5.7% in the January-March period amid subdued activity. However, losses remained capped with the report that retail inflation based on Consumer Price Index (CPI) slumped to a series low of 3.17% in January, mainly due to fall in food prices, especially those of vegetables and pulses. Overall, Consumer Food Price Index was down at 0.53% in January as against 1.37% in December. However, core inflation–the inflation rate excluding food and fuel inflation–inched higher to 5.1% in January 2017 from 4.9% last month. Some support also came with Finance Minister Arun Jaitley’s statement that the Modi government's emphasis is on bold decision making and a clean economy with business friendly environment, the returns of which can be spent on the poor.

On the global front, most of the Asian markets were trading lower on Tuesday as investors look to the Federal Reserve chair's two-day congressional testimony starting Tuesday for her comments on banking regulations and potential hints of the Fed's rate hike trajectory. Further, Wall Street indices had hit historic peaks on Monday, with the benchmark S&P 500's market value topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.

Back home, all sectoral indices on the BSE were trading in the red with Metal index emerging as the top loser, down by around one and half percent followed by Consumer Durables, PSU and Power indices among others. In scrip specific development, Container Corporation of India declined after the company reported 9.56% drop in its net profit at Rs 185.99 crore for third quarter ended December 31, 2016 as compared to Rs 205.66 crore for the same quarter in the previous year. On the other hand, SJVN surged after the company has reported 23.20% rise in its net profit at Rs 261.06 crore for the quarter ended December 31, 2016, as compared to Rs 211.90 crore for the same quarter in the previous year.

The market breadth remained pessimistic, as there were 1005 shares on the gaining side against 1470 shares on the losing side, while 143 shares remained unchanged.

The BSE Sensex is currently trading at 28320.46, down by 31.16 points or 0.11% after trading in a range of 28263.45 and 28386.68. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.71%, while Small cap index down by 0.31%.

The top losing sectoral indices on the BSE were Metal down by 1.47%, Consumer Durables down by 0.72%, PSU down by 0.64%, Power down by 0.48% and FMCG down by 0.40%, while there were no gainers on BSE sectoral front.

The top gainers on the Sensex were Reliance Industries up by 2.01%, GAIL India up by 1.52%, ONGC up by 1.48%, Adani Ports & SEZ up by 1.28% and Sun Pharma up by 0.66%. On the flip side, Hero MotoCorp down by 1.89%, Hindustan Unilever down by 1.73%, Power Grid down by 1.26%, Coal India down by 1.22% and Bajaj Auto down by 1.19% were the top losers.

Meanwhile, easing for the second consecutive month, retail inflation or Consumer Price Index (CPI) stood at 3.17 percent in January, 2017, its lowest level in at least five years. The decline in retail inflation has been mainly due to fall in food prices, especially those of vegetables and pulses. As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 stood at 3.36 percent, 2.90 percent and 3.17 percent respectively compared to 3.83 percent, 2.90 percent and 4.41 percent respectively in December 2016 and 6.48 percent 4.81 percent 5.69 percent respectively in January 2016.

The data also showed that Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for January 2017 declined considerably to 1.07 percent (-) 0.31 percent and 0.33 percent respectively compared to 2.06 percent, 0.15 percent, 1.37 percent respectively in December 2016 and 6.93 percent 6.50 percent and 6.85 percent in January 2016.

As per the data, Vegetable inflation continued to be in the negative territory at (-) 15.62 percent as against (-) 14.59 percent a month ago. For pulses and products also, the inflation rate was in negative zone at (-) 6.62 percent. However, inflation rate of meat and fish increased to 2.98 percent in January, while that for fruits stood at 5.81 per cent. The fuel and light category’s inflation rate stood at 3.42 per cent in January. Clothing and footwear inflation in January stood at 4.17 percent, lower than 4.88 per cent a month ago. Inflation for household goods and services also declined to 4.19 percent in January as against 4.45 percent a month ago.

The CNX Nifty is currently trading at 8790.95, down by 14.10 points or 0.16% after trading in a range of 8772.50 and 8820.45. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.01%, Eicher Motors up by 1.69%, GAIL India up by 1.46%, ONGC up by 1.40% and Adani Ports & SEZ up by 1.24%. On the flip side, Ultratech Cement down by 2.06%, Hero MotoCorp down by 1.97%, BPCL down by 1.85%, Hindustan Unilever down by 1.70% and Ambuja Cement down by 1.67% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 declined 1.11%, Jakarta Composite decreased 0.26%, KOSPI Index shed 0.17%, Shanghai Composite slipped 0.22%, FTSE Bursa Malaysia KLCI dipped 0.18% and Hang Seng was down by 0.14%. On the flip side, Taiwan Weighted was tad up by 0.09%.