Sensex, Nifty trade flat with negative bias

Mirroring weak European markets, Indian key indices traded flat with a negative bias in late afternoon session. Some anxiety spread among the investors with the private report that the country’s current account deficit is likely to widen to 3 percent in the second quarter of 2017 due to sharp deterioration in trade deficit. Selling witnessed at Realty, PSU and Power counters, too weighted on the sentiments. Traders shrugged off the report stating that Equity markets are in the middle of strong capital inflows and the dream run may just be starting as India makes the most of domestic liquidity supercycle. However, the downside remained capped with a joint report by FICCI and Deloitte that Indian retail sector is expected to grow almost double to Rs 85 trillion by 2021 from the current estimated size of more than Rs 45 trillion, with a CAGR of over 10 percent in 2016-21. Meanwhile, the government has set up an online service facility that can be used by importers and exporters to resolve all foreign trade-related issues.

On the global front, European markets were trading in red as investors were cautious following a massive storm nearing the US and as the dollar skid against the euro after comments from European Central Bank (ECB) President Mario Draghi. Asian markets were also trading in red. Back home, in scrip specific development, Vista Pharmaceuticals touched the roof after the company received EIR for formulation facility at APIIC Industrial Estate, Nalgonda District in state of Telangana, which was inspected by US Food & Drug Administration (USFDA) during September 2016.

The BSE Sensex is currently trading at 31653.26, down by 9.48 points or 0.03% after trading in a range of 31619.00 and 31763.70. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.60%, while Small cap index was down by 0.15%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.67%, Industrials up by 0.55%, FMCG up by 0.38% and Telecom up by 0.14%, while Realty down by 1.68%, PSU down by 1.08%, Power down by 0.88%, Healthcare down by 0.85% and Oil & Gas down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.76%, Bharti Airtel up by 1.16%, Kotak Mahindra Bank up by 1.00%, ITC up by 0.70% and HDFC Bank up by 0.69%. On the flip side, Mahindra & Mahindra down by 3.34%, Dr. Reddy’s Lab down by 3.15%, Sun Pharma down by 1.79%, Tata Motors - DVR down by 1.44% and Bajaj Auto down by 1.43% were the top losers.

Meanwhile, a joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Deloitte has expressed hopes for Indian retail sector growth in future, saying that the sector is expected to grow almost double to Rs 85 trillion by 2021 from the current estimated size of more than Rs 45 trillion, with a CAGR of over 10 percent in 2016-21.

The report said that the consumer data along with disruptions in technology will lead to growth in retail and FMCG sectors, noting that consumer experience will be the focal concern for all retailers and brands. For consumer business sectors, it said that internet will be a key growth driver and consumer data and insights will be at the forefront of defining the trends.

As per report, the data generated by shoppers and consumer behaviour would be leveraged to overhaul the consumer retail journey, using means such as Internet of Things (IoT) and predictive analysis. FICCI- Deloitte report further noted that growing number of smartphones, apps, web, social media users will also drive the growth of omni-channel retail, predicting that advertisers’ spending on digital marketing would double in the next 4 years to 24 percent of total expenses.

The CNX Nifty is currently trading at 9924.75, down by 5.15 points or 0.05% after trading in a range of 9915.30 and 9963.60. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.40%, Bharti Airtel up by 1.21%, Kotak Mahindra Bank up by 1.18%, Tech Mahindra up by 1.02% and HDFC Bank up by 0.98%. On the flip side, Mahindra & Mahindra down by 3.37%, Dr. Reddy’s Lab down by 3.21%, Sun Pharma down by 1.94%, BPCL down by 1.81% and Bank of Baroda down by 1.76% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 121.7 points or 0.63% to 19,274.82, FTSE Bursa Malaysia KLCI decreased 4.64 points or 0.26% to 1,778.34, KOSPI Index decreased 2.47 points or 0.11% to 2,343.72 and Shanghai Composite decreased 0.25 points or 0.01% to 3,365.24. On the flip side, Jakarta Composite increased 29.16 points or 0.5% to 5,861.47, Taiwan Weighted increased 71.44 points or 0.68% to 10,609.95 and Hang Seng increased 145.55 points or 0.53% to 27,668.47.

All European markets were trading in red; France’s CAC decreased 19.76 points or 0.39% to 5,094.86, UK’s FTSE 100 decreased 19.05 points or 0.26% to 7,377.93 and Germany’s DAX decreased 15.98 points or 0.13% to 12,280.65.