Markets trade flat in late afternoon session

Indian equity benchmarks recovered their losses to trade flat in late afternoon session as investors took encouragement with Finance Minister Arun Jaitley’s statement that the rhetoric of protectionism in developed economies and unpredictable global slowdown have not affected India and it is determined to grow with focus on investments. Sentiments got some support 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. Further gains remained restricted 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. On sectoral front, stocks from TECK and IT were attracting buyers, whereas those from Metal, PSU and Consumer Durables sections were trading weak.

On the global front, European markets were trading in red ahead of Federal Reserve Chairwoman Janet Yellen's testimony before Congress today and tomorrow. Asian markets were trading in red. Back home, in scrip specific development, Siemens traded higher after company bagged an order worth approximately Rs 101 crore from Delhi Transco (DTL) and Idea Cellular gained after company decided to raise Rs 500 crore through issuance of unsecured redeemable non-convertible debentures (NCDs) on private placement basis.

The BSE Sensex is currently trading at 28369.84, up by 18.22 points or 0.06% after trading in a range of 28263.45 and 28386.68. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.57%, while Small cap index was lower by 0.49%.

The only gaining sectoral indices on the BSE were TECK up by 0.35% and IT up by 0.15%, while Metal down by 1.18%, PSU down by 0.91%, Consumer Durables down by 0.62%, Oil & Gas down by 0.60% and FMCG down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.44%, Reliance Industries up by 2.02%, GAIL India up by 1.84%, Adani Ports & Special economic zone up by 1.73% and ONGC up by 1.25%. On the flip side, Hero MotoCorp down by 1.78%, Hindustan Unilever down by 1.66%, Bajaj Auto down by 0.97%, Maruti Suzuki down by 0.96% and Axis Bank down by 0.93% were the top losers.

Meanwhile, amid increased global protectionism incidence, Finance Minister Arun Jaitley has said that India remained unaffected amid the global slowdown and protectionism talk in the developed countries. He added that such talk is heard only in the developed economies and not in India which indicates that the country is determined to grow with focus on investments.

Finance Minister said that “not a single sound or even 'a whisper' of protectionism is being heard in India and that this itself is a tribute to the fact that the country is willing to accept investments and tune its policies.” 

FM pointed out that 'We are not satisfied with the tag of being the fastest economy in the world. We think we have a potential to do better'. He added that the policy-makers were under pressure because of peoples’ impatience to see India grow at a faster rate and eradicate poverty. Further, Jaitley suggested that the state governments should work together with the central government to continue path of growth, adding that in spite of India's growth being pegged at 7 to 7.5 per cent growth rate, there is scope for greater growth.

The CNX Nifty is currently trading at 8804.95, down by 0.10 points or 0.00% after trading in a range of 8772.50 and 8820.45. There were 20 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.98%, Bharti Airtel up by 2.37%, Eicher Motors up by 2.18%, Reliance Industries up by 1.95% and GAIL India up by 1.80%. On the flip side, BPCL down by 3.38%, Hero MotoCorp down by 1.99%, Ultratech Cement down by 1.84%, Zee Entertainment down by 1.63% and Hindustan Unilever down by 1.62% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 220.17 points or 1.13% to 19,238.98, Jakarta Composite decreased 28.79 points or 0.53% to 5,380.77, Hang Seng decreased 7.97 points or 0.03% to 23,703.01, KOSPI Index decreased 4.08 points or 0.2% to 2,074.57 and FTSE Bursa Malaysia KLCI decreased 3.04 points or 0.18% to 1,707.20. On the flip side, Shanghai Composite increased 1.09 points or 0.03% to 3,217.93 and Taiwan Weighted increased 8.46 points or 0.09% to 9,718.78.

All European markets were trading in red; UK’s FTSE 100 decreased 23.28 points or 0.32% to 7,255.64, Germany’s DAX decreased 9.27 points or 0.08% to 11,765.16 and France’s CAC decreased 4.23 points or 0.09% to 4,883.96.