Benchmarks trade lower ahead of IIP, CPI data

Indian equity benchmarks made a dismal start and are trading with a cut of over one third of a percent in early deals, breaching their crucial 33,400 (Sensex) and 10,300 (Nifty) levels, as traders opted to book some profit after three days of continuous rally. Traders also remained on sidelines ahead of Index of Industrial Production (IIP) data for October and inflation data based on consumer price index (CPI) for November to be released later in the day. Traders failed to get any sense of relief with the UN DESA's World Economic Situation and Prospects 2018 report, which has said that despite a slowdown observed in early 2017, the outlook for India remains positive, underpinned by strong private consumption, robust public investments and structural reforms.

On the global front, Asian markets are trading mostly in red despite making a positive start, as traders are a bit cautious awaiting U.S. and European central bank meetings this week for further clues on the 2018 policy outlook. The US markets continued their upmove and the Dow and the S&P 500 reached new record closing highs in the last session.

Back home, economists as part of pre-budget consultations have suggested a range of measures, including increasing social security pension, to Finance Minister Arun Jaitley. Shares of paper manufacturers remained on buyers’ radar on expectation of robust growth demand. As per the reports, experts estimate 12 per cent and four to five per cent growth in demand for packaging and writing & printing paper, respectively, next year. Writing & printing paper continues to face margin pressure in cheaper shipments from Southeast Asia.

The BSE Sensex is currently trading at 33338.40, down by 117.39 points or 0.35% after trading in a range of 33336.02 and 33458.41. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.17%, while Small cap index was down by 0.01%.

The few gaining sectoral indices on the BSE were Metal up by 0.92%, Healthcare up by 0.41%, Energy up by 0.26% and Basic Materials was up by 0.25%, while Bankex down by 0.93%, Telecom down by 0.75%, Power down by 0.65%, FMCG down by 0.54% and Capital Goods was down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 4.07%, ONGC up by 1.65%, Lupin up by 1.22%, Reliance Industries up by 0.98% and Adani Ports &Special up by 0.77%. On the flip side, Asian Paints down by 1.82%, TCS down by 1.24%, Bharti Airtel down by 1.19%, ICICI Bank down by 1.09% and SBI down by 0.96% were the top losers.

Meanwhile, Indian companies has raised around to Rs 51,000 crore in the month of November 2017, by way of private placement of corporate bonds. According to the latest data by the markets regulator Securities and Exchange Board of India (SEBI), companies garnered Rs 50,855.00 crore from debt on a private placement basis in  the month of November, 31.60 percent higher than Rs 38644.64 crore raised in November 2016.

However, in volume terms just 145 issues were made in November as compared with 221 in the year-ago period. The markets regulator’s data showed that the funds have been raised mainly for business expansion, to support working capital requirements and retire their existing debt.

As per the SEBI data, with the latest mobilisation, the total fund-raising through a private placement of debt securities reached Rs 4.2 lakh crore in the April-November period of the fiscal year 2017-18. In the entire 2016-17 financial year, the capital raked in through the route stood at Rs 6.4 lakh crore. In private placement of bonds, firms issue securities or bonds to institutional investors to raise capital.

The CNX Nifty is currently trading at 10285.00, down by 37.25 points or 0.36% after trading in a range of 10278.45 and 10326.10. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 4.02%, Vedanta up by 2.39%, GAIL India up by 2.30%, ONGC up by 1.57% and Hindalco up by 1.45%. On the flip side, HPCL down by 2.76%, Indian Oil Corporation down by 2.23%, BPCL down by 2.03%, Eicher Motors down by 1.76% and Asian Paints down by 1.29% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 132.63 points or 0.46% to 28,832.66, Nikkei 225 decreased 44.89 points or 0.2% to 22,893.84, Taiwan Weighted shed 29.58 points or 0.28% to 10,443.51, Shanghai Composite dropped 19.07 points or 0.57% to 3,303.13, KOSPI Index fell 14.18 points or 0.57% to 2,457.31 and Jakarta Composite was down by 1.89 points or 0.03% to 6,024.74.

On the flip side, FTSE Bursa Malaysia KLCI was up by 0.84 points or 0.05% to 1,720.31.