Markets continue to trade volatile

Indian benchmark indices continued their volatile trade in late afternoon session amid weak global cues. The sensex and Nifty were down with marginal losses as investors booked profits in metal and FMCG stocks. Investors also digested the outcome of Federal Reserve meeting and focussed more of corporate earnings. Former Economic Affairs Secretary Shaktikanta Das’ statement that improvement in ease of doing business is extremely relevant and will promote private investment, growth and job creation, failed to provide support to the markets. However, the broader markets were trading better than larger peers with gains of more than 0.30% each. On the sectoral front, telecom shares were trading higher despite report from Moody's Investors Service that among the Asian countries, India will be the only country where telecom sector's revenue will continue to decline for sometime amid unprecedented price competition spurred by a new entrant.

On the global front, European markets were trading mixed as investors reacted to a slew of earnings news and waited for the latest rate decision from the Bank of England (BOE). Asian markets were trading in red. Back home, in scrip specific development, Rajesh Exports gained after the company secured an order for its products for a value of Rs 634 crore. The order has been procured beating global competition from a well established and prestigious global white label importer from UAE. The said order is to be completed by February 2018.

The BSE Sensex is currently trading at 33592.20, down by 8.07 points or 0.02% after trading in a range of 33527.00 and 33657.57. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.51%, Utilities up by 0.50%, Consumer Durables up by 0.49%, IT up by 0.36% and Power up by 0.21%, while FMCG down by 0.89%, Metal down by 0.76%, Realty down by 0.41%, Energy down by 0.38% and Oil & Gas down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Lupin up by 2.88%, Sun Pharma up by 2.73%, Power Grid Corporation up by 2.40%, Cipla up by 2.26% and Coal India up by 2.05%. On the flip side, ITC down by 1.54%, SBI down by 1.38%, Hindustan Unilever down by 1.30%, Hero MotoCorp down by 1.13% and Mahindra & Mahindra down by 1.04% were the top losers.

Meanwhile, flagging concerns over the financial health of Indian telecom sector, global credit rating agency, Moody's Investors Service in its latest report has said that among the Asian countries, India will be the only country where telecom sector's revenue will continue to decline for sometime amid unprecedented price competition spurred by a new entrant.

As per Moody's recent report on ‘Asia Pacific's telecoms industry’, Indian operators’ profitability will remain under pressure over the next 12-18 months, as pricing competition remains fierce.  However, it said that revenue growth in developed markets will remain in line with expected GDP growth of around 1.5%. It maintained a stable outlook for Asia Pacific's telecoms industry, with the expectations of year-on-year average revenue growth of about 2.0%-2.5% over the next 12-18 months. The report also raised expectations that EBITDA growth will be 0-2% but noted that average margins will contract slightly next year.

The rating agency estimates headwinds from technological changes to Asia Pacific's telecoms industry despite stable outlook.  The report is also hoping that Asia Pacific's telecoms companies will continue to expand into digital media, advertising, and mobile payments to future-proof their revenue streams.

The CNX Nifty is currently trading at 10425.20, down by 15.30 points or 0.15% after trading in a range of 10412.55 and 10453.00. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 3.48%, Sun Pharma up by 2.81%, Lupin up by 2.80%, Power Grid Corporation up by 2.54% and Dr. Reddy’s Lab up by 2.50%. On the flip side, Tech Mahindra down by 3.46%, Hindalco down by 2.96%, Bharti Infratel down by 1.84%, ITC down by 1.61% and SBI down by 1.47% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 75.42 points or 0.26% to 28,518.64, Taiwan Weighted decreased 17.85 points or 0.17% to 10,788.51, Shanghai Composite decreased 12.6 points or 0.37% to 3,383.31, KOSPI Index decreased 10.11 points or 0.4% to 2,546.36, Jakarta Composite decreased 2.56 points or 0.04% to 6,035.59 and FTSE Bursa Malaysia KLCI decreased 1.04 points or 0.06% to 1,742.89. On the flip side, Nikkei 225 increased 119.04 points or 0.53% to 22,539.12.

European Markets were trading mixed; UK’s FTSE 100 increased 1.54 points or 0.02% to 7,489.50 and France’s CAC increased 3.77 points or 0.07% to 5,518.06. On the flip side, Germany’s DAX decreased 17.88 points or 0.13% to 13,447.63.