Benchmarks trade marginally lower on weak macro data

Indian equity benchmarks made a pessimistic start and are trading slightly in red on weak macro economic data. The industrial output growth slowed down to 2.2 percent in October while retail inflation soared to 15-month high of 4.88 percent in November. Traders will be more concerned with the spike in inflation, as the higher inflation rate is unlikely to push the Reserve Bank of India (RBI) to change its key rate any time soon. However, losses remained capped with traders getting some solace with a private survey report, stating that India is the third most optimistic nation in hiring intentions as 22 percent of employers are expected to add more staff in the next three months. It further said that workforce gains were expected across all seven industry sectors monitored and in all four regions.

On the global front, Asian markets exhibiting mixed trend and some of the indices are down by about half a percent, with investors awaiting central bank decisions in Europe and America for clues on the policy path for next year. The US markets made a mixed closing in the last session, with the S&P 500 and Dow ending at fresh at records for a fourth consecutive session.

Back home, tourism and hotel stocks remained in focus on a tourism ministry report that more than 10 lakh foreign tourists visited India in November 2017, a rise of 14.4 per cent over the same period last year. FTAs during the period between January and November this year were 90.01 lakh, with a growth of 15.6 per cent over the same period the previous year. In scrip specific development, JB Chemicals gained on receiving USFDA approval for Atenolol Tablets, while Punj Lloyd surged on bagging orders from GAIL and NHAI.

The BSE Sensex is currently trading at 33213.72, down by 14.27 points or 0.04% after trading in a range of 33123.44 and 33248.92. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.43%, Oil & Gas up by 1.21%, Telecom up by 0.95%, Energy up by 0.78% and TECK was up by 0.42%, while Metal down by 0.44%, Bankex down by 0.29%, FMCG down by 0.26%, Basic Materials down by 0.15% and Capital Goods was down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.02%, Bharti Airtel up by 1.05%, Dr. Reddys Lab up by 0.64%, Infosys up by 0.64% and Mahindra & Mahindra up by 0.55%. On the flip side, Adani Ports down by 1.18%, ITC down by 0.80%, SBI down by 0.68%, Power Grid Corporation down by 0.67% and Axis Bank down by 0.49% were the top losers.

Meanwhile, rising for the second straight month, the Consumer Price Index (CPI) or retail inflation jumped to 15-month high of 4.88% in the month of November 2017, as compared to 3.63% during the corresponding period last year and 3.58% in the month of October 2017. The sharp rise in inflation was primarily due rising prices of food products, particularly vegetables, and fuels. November's inflation numbers also breached the Reserve Bank of India’s (RBI's) mid-term target of 4%. The previous high was recorded at 5.05% in August last year. The annual retail food inflation climbed to 4.42% in November from 1.90% in the previous month and 2.03% in the same month last year.

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 November 2017, stood at 4.79%, 4.90% and 4.88% respectively, compared to at 4.13%, 3.13% and 3.63% respectively in November 2016. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for November 2017 stood at 4.11% and 4.90%, respectively, compared to 2.79% and 0.75%, respectively in November 2016. The index value of CFPI for combined stood at 141.6 for the month of November.

Within the food segment, Vegetable prices jumped 22.48% year-on-year, the steepest since the double-digit inflation episode in early 2013. Inflation in eggs shot to 7.95% in November on annual basis, compared to 0.69% in the previous month. However, in the pulses segment the print continued to show disinflationary trend as it contracted by 23.53% on annual basis. Besides, fuel inflation quickened to 7.92% from 6.36%, driven by rise in global prices of crude oil. Housing inflation nearly grew 7.36% in November from 6.68% in October.

The CNX Nifty is currently trading at 10231.35, down by 8.80 points or 0.09% after trading in a range of 10210.55 and 10247.40. There were 24 stocks advancing against 25 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were GAIL India up by 1.55%, HPCL up by 1.46%, ONGC up by 1.45%, BPCL up by 1.19% and Indian Oil Corporation up by 1.11%. On the flip side, Vedanta down by 1.72%, Adani Ports down by 1.49%, HCL Tech. down by 0.95%, ITC down by 0.92% and UPL down by 0.91% were the top losers.

Asian markets are trading mixed; FTSE Bursa Malaysia KLCI rose 1.59 points or 0.09% to 1,731.16, KOSPI Index increased 14.68 points or 0.6% to 2,475.68, Taiwan Weighted added 22.86 points or 0.22% to 10,466.14 and Hang Seng was up by 79.33 points or 0.28% to 28,873.21.

On the flip side, Nikkei 225 decreased 128.93 points or 0.56% to 22,737.24, Shanghai Composite shed 3.98 points or 0.12% to 3,276.83 and Jakarta Composite was down by 3.52 points or 0.06% to 6,028.85.