Markets off Day’s high; Nifty holds 10,100 mark

Indian key bourses trimmed some of their gains in late afternoon session to come off day’s highs, as traders opted to book profit at higher levels amid weak opening in European markets. Anxiety spread among the investors with the report that the Consumer Price Index (CPI) or retail inflation jumped to five month high of 3.36% in the month of August 2017, mainly due to an increase in foods prices and higher services costs, indicating Goods and Services Tax’s (GST’s) inflationary impact. Some concerns also came with report that India Inc’s foreign direct investment (FDI) dropped 14.82 per cent to $1339.26 million during August 2017 from $1572.23 million in the same month of last year. However, the indices remained in green taking support from India's industrial output data which expanded modestly by 1.2% in July, 2017, after contracting 0.17% in June, possibly on the back of some restocking by companies following the July 1 goods and services tax (GST) rollout and a marginal uptick in the core sector. Besides, the private report stating that India’s GDP growth is expected to be around 7.1 per cent this fiscal following a likely pick up in industrial production as firms resort to 'restocking' post-Goods and Services Tax (GST) especially ahead of festive season, too helped markets to remain in green.

On the global front, European markets have made a weak start and are trading in red terrain, as basic resources lead losses. Asian markets were also trading in red. Back home, in scrip specific development, Freshtrop Fruits traded jubilantly after the company received an approval for strengthening the fruits processing business at Nashik, with production of cold extracted, highly nutritious, extended shelf-life, ready to drink (RTD) beverages. Barring unforeseen circumstances, the company would launch the RTD into the domestic market before the end of November 2017.

The BSE Sensex is currently trading at 32259.29, up by 100.63 points or 0.31% after trading in a range of 32137.71 and 32348.30. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.21%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were Energy up by 1.26%, Healthcare up by 1.24%, Bankex up by 0.45%, Consumer Durables up by 0.18% and IT was up by 0.17%, while Metal down by 1.15%, Basic Materials down by 0.71%, FMCG down by 0.65%, Realty down by 0.42% and Capital Goods was down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.41%, Sun Pharma Inds. up by 3.23%, Dr. Reddy’s Lab up by 1.68%, Axis Bank up by 1.30% and Lupin up by 1.25%. On the flip side, ITC down by 1.82%, Tata Steel down by 0.86%, HDFC down by 0.77%, Coal India down by 0.64% and Power Grid Corpn. down by 0.63% were the top losers.

Meanwhile, signaling lower spending, India Inc’s foreign direct investment (FDI) dropped 14.82 per cent to $1339.26 million during August 2017 from $1572.23 million in the same month of last year. The outward foreign direct investment declined 24.25 per cent in August 2017 as compared to $1768.02 million in July 2017.

According to the data released by the Reserve Bank of India, of the total investments in foreign ventures by Indian companies overseas, $944.14 million was in the form of issuance of guarantees, $184.44 million as loan and $210.68 million was part of equity investment.

Of all leading investors, Wipro put in $500 million into a wholly owned unit in the US, while Sintex–BAPL invested $102.50 million in a joint venture in Netherlands. Besides, Tata Communications invested $78.75 million in a wholly owned subsidiary in Singapore and ONGC Videsh invested $55.54 million in various joint ventures in Myanmar, Russia and Vietnam.

The CNX Nifty is currently trading at 10104.20, up by 11.15 points or 0.11% after trading in a range of 10084.05 and 10131.95. There were 22 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Tata Power up by 4.57%, Reliance Industries up by 3.34%, Sun Pharma Inds. up by 3.09%, Dr. Reddy’s Lab up by 1.78% and Bank of Baroda up by 1.76%. On the flip side, BPCL down by 2.74%, ITC down by 1.76%, Hindalco down by 1.57%, Indiabulls Housing Finance down by 1.52% and Vedanta down by 1.33% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 78.16 points or 0.28% to 27,894.08, Taiwan Weighted decreased 77.47 points or 0.73% to 10,532.88, Jakarta Composite decreased 25.46 points or 0.43% to 5,846.91, KOSPI Index decreased 5.29 points or 0.22% to 2,360.18 and FTSE Bursa Malaysia KLCI decreased 4.36 points or 0.24% to 1,785.50. On the flip side, Shanghai Composite increased 4.66 points or 0.14% to 3,384.15 and Nikkei 225 increased 89.2 points or 0.45% to 19,865.82.

All European Markets were trading in red; UK’s FTSE 100 decreased 42.53 points or 0.57% to 7,358.16, Germany’s DAX decreased 8.13 points or 0.06% to 12,516.64 and France’s CAC decreased 4.69 points or 0.09% to 5,204.32.