Sensex, Nifty trim losses; Realty index up

The local benchmarks trimmed most of their losses in late afternoon session, taking firm cues from European markets. The indices managed to pare losses with taking support from Finance Minister Arun Jaitley’s statement that there is scope for further rationalisation of GST rates and revenue buoyancy will decide the course of rationalization. Some support also came with Prime Minister Narendra Modi’s statement that the demonetisation of high value currency notes along with a series of other reform measures have resulted in formalising a large part of the Indian economy. However, the markets remained lower, influenced by higher inflation data reports. India’s retail inflation accelerated to seven-month high of 3.58% in the month of October 2017, as compared to 3.28% in September 2017, while the wholesale price inflation (WPI) climbed to 3.59% in October 2017 from 2.60% in September 2017 and 1.27% during the corresponding month of the previous year. Traders took note of a private report stating that India would be a clear-cut loser if crude oil continues to rise. Meanwhile, services export of India remained flat at $13.73 billion in September year-on-year, while import slightly picked up to $8.45 billion.

On the global front, European markets were trading in green, with fresh earnings reports. Market participants were also looking ahead to speeches by European Central Bank President Mario Draghi, Bank of England Governor Mark Carney, Bank of Japan Governor Haruhiko Kuroda and Federal Reserve Chair Janet Yellen. Stronger-than-expected economic data from Germany, also boosted the sentiment. However, Asian markets were trading in red. Back home, in scrip specific development, Nucleus Software Exports jumped higher after the company extended the digital capabilities of its award winning lending mobility solution.

The BSE Sensex is currently trading at 33021.37, down by 12.19 points or 0.04% after trading in a range of 32914.42 and 33126.55. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.01%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were Realty up by 0.77%, Consumer Durables up by 0.69%, Auto up by 0.48%, Energy up by 0.42% and Consumer Disc up by 0.30%, while Capital Goods down by 1.28%, Telecom down by 1.18%, PSU down by 0.81%, Oil & Gas down by 0.73% and TECK down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.93%, Hero MotoCorp up by 1.86%, Bajaj Auto up by 1.76%, Axis Bank up by 1.71% and Mahindra & Mahindra up by 1.68%. On the flip side, Larsen & Toubro down by 2.26%, Asian Paints down by 1.80%, TCS down by 1.77%, Power Grid Corporation down by 1.63% and ONGC down by 1.30% were the top losers.

Meanwhile, India’s retail inflation accelerated to seven-month high of 3.58% in the month of October 2017, as compared to 3.28% in September 2017, but lower than 4.20% in October 2016. Consumer inflation rise was mainly due to an increase in prices of consumer food items. However, the rate still remains below the Reserve Bank of India’s medium-term target of 4%, with a tolerance band of 2%-6%. The inflation data showed that the Consumer Food Price Index (CFPI) - an indicator for food prices - also rose to 1.90% in October from 1.25% in September.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 for October 2017, stood at 3.36%, 3.81% and 3.58% respectively, compared to at 4.78%, 3.54% and 4.20% respectively in October 2016. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for October 2017 stood at 1.75% and 2.13%, respectively, compared to 3.86% and 2.33%, respectively in October 2016. The index value of CFPI for combined stood at 139.4 for the month of October.

Within the food segment, vegetable inflation quickened rapidly to 7.47% in October, from 3.92% in September. Inflation in the milk and products category quickened to 4.30% in October from 3.87% in the previous month. The food and beverages saw a growth of 2.26% in October, the fastest pace since March, and up from 1.76% in September. Besides, Pulses and products inflation witnessed a negative growth of (-) 23.13%, as compared with (-) 22.51% in September. Furthermore, the rate of growth of prices in the clothing and footwear category speeded up a tad to 4.76% in October, from 4.63% in September. Inflation in the housing sector accelerated to 6.68%, from 6.10% in the preceding month. Inflation in the fuel and light segment came in at 6.36%, up from 5.56% in September.

The CNX Nifty is currently trading at 10219.80, down by 5.15 points or 0.05% after trading in a range of 10180.70 and 10248.00. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.33%, Hero MotoCorp up by 2.03%, Reliance Industries up by 2.02%, Bajaj Auto up by 1.86% and Axis Bank up by 1.77%. On the flip side, Bharti Infratel down by 3.72%, Larsen & Toubro down by 2.33%, Indian Oil Corporation down by 2.24%, HPCL down by 2.05% and TCS down by 1.81% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 30.06 points or 0.1% to 29,152.12, Jakarta Composite decreased 18.51 points or 0.31% to 6,002.95, Shanghai Composite decreased 18.29 points or 0.53% to 3,429.55, KOSPI Index decreased 3.71 points or 0.15% to 2,526.64, Nikkei 225 decreased 0.98 points or 0% to 22,380.01 and FTSE Bursa Malaysia KLCI decreased 0.65 points or 0.04% to 1,736.84. On the flip side, Taiwan Weighted increased 3.26 points or 0.03% to 10,687.18.

All European markets were trading in green; UK’s FTSE 100 increased 10.07 points or 0.14% to 7,425.25, France’s CAC rose 13.3 points or 0.25% to 5,354.93 and Germany’s DAX was up by 31.34 points or 0.24% to 13,105.76.