Markets continue lackluster trade; Realty, metal in green

Key Indian equity indices continued their volatile trade, were trading in negative territory in late afternoon session, on the back of mixed global cues.  Sentiments remained subdued as the RBI cut the economic growth forecast for the current fiscal to 6.7% from its August forecast of 7.3% in view of issues with GST implementation and lower Kharif output estimates. Some concerns also came with Union minister P P Chaudhary’s statement that as many as 4.5 lakh directors may face disqualification for their association with shell companies, as the government steps up its fight against the black money menace.  However, downside remained capped with taking support from the report that the services sector bounced back to growth in the month of September, as the businesses recovered from the Goods and Services Tax (GST) related contractions, driven by renewed increases in new business and output. The seasonally adjusted Nikkei Services Business Activity Index rose back above the 50.0 no-change mark in September, posting reading at 50.7 from 47.5 in August. Besides, CII President Shobana Kamineni’s statement that festive season sales boosting white goods and fast moving consumer goods (FMCG) sector, too added some support.

On the global front, European markets were trading mixed as investors monitored political events and took a cautious approach ahead of key data releases. Asian markets were also trading mixed. Back home, in scrip specific development, Maruti Suzuki India was trading in green after the company reported 3.28% rise in its production to 1,51,239 units in September 2017, as compared to 1,46,434 units in September 2016. Of total, the company manufactured 37,078 vehicles under mini segment (including Alto, Wagon R) in September 2017, as against 46,499 units manufactured in corresponding month previous year.

The BSE Sensex is currently trading at 31656.52, down by 15.19 points or 0.05% after trading in a range of 31610.65 and 31772.41. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.91%.

The top gaining sectoral indices on the BSE were Realty up by 1.40%, Basic Materials up by 0.93%, Healthcare up by 0.63%, Metal up by 0.39% and Consumer Disc up by 0.34%, while Telecom down by 0.42%, Oil & Gas down by 0.38%, Consumer Durables down by 0.34%, PSU down by 0.18% and Bankex down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.46%, Mahindra & Mahindra up by 1.16%, Coal India up by 0.94%, Cipla up by 0.93% and Dr. Reddy’s Lab up by 0.75%. On the flip side, Power Grid Corporation down by 1.79%, ICICI Bank down by 1.39%, Axis Bank down by 0.85%, Bajaj Auto down by 0.83% and SBI down by 0.79% were the top losers.

Meanwhile, after contracting for two months in a row, the services sector bounced back to growth in the month of September, as the businesses recovered from the Goods and Services Tax (GST) related contractions, driven by renewed increases in new business and output. The seasonally adjusted Nikkei Services Business Activity Index rose back above the 50.0 no-change mark in September, posting reading at 50.7 from 47.5 in August. The Nikkei India Composite PMI Output Index which measures both manufacturing and services too climbed to 51.1 in September from 49.0 in August.

As per the survey report, the rate of employment growth was the strongest since June 2011 on the back of greater workloads coupled with improving economic environment. Going further, manufacturers added payroll numbers in September on account of increased new orders. The report also said that growth in new business witnessed due to marketing campaigns done by companies and strengthening demand conditions, leading rise in outstanding business volumes at service providers.

On the inflation front, input cost inflation accelerated in September month, by quickening at fastest rate since March, while output charge inflation slowed to the weakest since June and was modest despite increase in output prices by service providers for the eighth month running. Besides, in the manufacturing sector, the rate of input price inflation intensified during September but was modest, and amid competitive environment, firms could increase the output prices only at a marginal pace.

The CNX Nifty is currently trading at 9910.70, down by 4.20 points or 0.04% after trading in a range of 9892.95 and 9945.95. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 2.88%, Ambuja Cement up by 1.52%, NTPC up by 1.43%, Yes Bank up by 1.34% and Mahindra & Mahindra up by 1.25%. On the flip side, Bharti Infratel down by 2.30%, Tech Mahindra down by 2.25%, Power Grid Corporation down by 1.91%, ICICI Bank down by 1.43% and HPCL down by 1.42% were the top losers.

Asian markets were trading mixed; Nikkei 225 increased 1.9 points or 0.01% to 20,628.56 and Taiwan Weighted increased 48.92 points or 0.47% to 10,518.27. On the flip side, Jakarta Composite decreased 42.23 points or 0.71% to 5,909.24 and FTSE Bursa Malaysia KLCI decreased 2.75 points or 0.16% to 1,759.09.

European markets were trading mixed; France’s CAC increased 0.39 points or 0.01% to 5,363.62 and UK’s FTSE 100 increased 11.91 points or 0.16% to 7,479.49. On the flip side, Germany’s DAX decreased 24.13 points or 0.19% to 12,946.39.