Bourses slip in red on mixed economic data

Key Indian benchmarks slipped in red terrain in late morning session and were hovering near their intraday low on mixed economic data. India’s Gross Domestic Product (GDP) growth accelerated to 6.3% in the July-September quarter of fiscal year 2017-18, while showing lackluster growth, core sector output grew at a slower pace of 4.7% in the month October 2017, from 5.2% in September 2017, largely due to subdued performance of cement, steel and refinery segments. Some concerns also came with Chief Statistician TCA Anant’s statement that the Goods and Services Tax (GST) regime, which kicked in from July 1, has posed fresh a new challenge for calculating India’s Gross Domestic Product (GDP). Besides, sentiments got dampened with the reports that India’s fiscal deficit, the gap between expenditure and revenue, touched 96.1% of the budget estimate (BE) in the first seven months of financial year 2017-18, mainly because of lower revenue collections and increase in expenditure. The markets failed to take encouragement from November Nikkei Manufacturing PMI which has come in at a 13-month high of 52.6 versus 50.3 MoM.

On the global front, Asian markets were trading mixed, as investors booked profits ahead of the release of key economic data in China and the weekend. Back home, in scrip specific development, Ashok Leyland traded jubilantly after the company reported a jump of 51% in November sales to 14,460 units, as against 9,574 units sold in the same month of last year.

The BSE Sensex is currently trading at 33106.32, down by 43.03 points or 0.13% after trading in a range of 33078.00 and 33300.81. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.47%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.59%, Industrials up by 0.51%, Auto up by 0.49%, FMCG up by 0.44% and Consumer Disc up by 0.34%, while Telecom down by 0.58%, Metal down by 0.54%, Energy down by 0.48%, Oil & Gas down by 0.34% and TECK down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 1.12%, NTPC up by 1.02%, Larsen & Toubro up by 0.95%, Tata Motors up by 0.91% and ITC up by 0.68%. On the flip side, Bharti Airtel down by 1.52%, Tata Steel down by 1.39%, Coal India down by 0.98%, Infosys down by 0.85% and Hindustan Unilever down by 0.77% were the top losers.

Meanwhile, India’s core sector output grew at a slower pace of 4.7% in the month October 2017, from 5.2% in September 2017, largely due to subdued performance of cement, steel and refinery segments. According to the data released by the ministry of Commerce and Industry showed the combined Index of eight core industries stood at 128.2 in October, 2017, which was 4.7% higher compared to the index of October, 2016. Its cumulative growth during April to October, 2017-18 was 3.5%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).    

Among eight core sectors, Coal production having 10.33% weight rose 3.9% in October, 2017 over October, 2016 and its cumulative index increased by 1.8% during April to October, 2017-18 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight jumped 7.5% in October, 2017 over October, 2016 and its cumulative index increased by 2.9% during April to October, 2017-18 over the corresponding period of previous year. Electricity generation having 19.85% weight surged 2.1% in October, 2017 over October, 2016 and its cumulative index spurted by 5.2% during April to October, 2017-18 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight advanced 2.8% in October, 2017 over October, 2016 and its cumulative index was up by 4.7% during April to October, 2017-18 over the corresponding period of previous year. Steel production having 17.92% weight rose 8.4% in October, 2017 over October, 2016 and its cumulative index jumped by 6.0% during April to October, 2017-18 over the corresponding period of previous year.

Crude Oil production having 8.98% weight dipped by 0.4% in October, 2017 over October, 2016 and its cumulative index declined by 0.2% during April to October, 2017-18 over the corresponding period of previous year. Cement production having 5.37% weight was down by 2.7 % in October, 2017 over October, 2016 and its cumulative index dropped by 1.6% during April to October, 2017-18 over the corresponding period of previous year. On the other hand, Fertilizer production having 2.63% weight inched up 3.0% in October, 2017 over October, 2016, while its cumulative index slipped 1.3% during April to October, 2017-18 over the corresponding period of previous year.

The CNX Nifty is currently trading at 10206.60, down by 19.95 points or 0.20% after trading in a range of 10204.55 and 10272.70. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 1.10%, Tata Motors up by 0.90%, Larsen & Toubro up by 0.86%, Ambuja Cement up by 0.78% and Indusind Bank up by 0.67%. On the flip side, Tata Steel down by 1.55%, Bharti Airtel down by 1.31%, Vedanta down by 1.24%, HCL Tech down by 1.16% and Infosys down by 1.04% were the top losers.

Asian markets were trading mixed; KOSPI Index increased 2.42 points or 0.1% to 2,478.79, Taiwan Weighted increased 39.93 points or 0.38% to 10,600.37 and Nikkei 225 increased 140.85 points or 0.62% to 22,865.81.

On the flip side, Hang Seng decreased 69.98 points or 0.24% to 29,107.37 and Shanghai Composite decreased 6.26 points or 0.19% to 3,310.92.