Benchmarks trade in green in morning session

Indian equity benchmarks entered into green territory in morning session, were trading tad above neutral lines, on account of buying in frontline counters. The rupee hit fresh five-month high in early trade and was trading almost flat. Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 325.91 crore on January 01, 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 1300.31 crore, as per provisional data. Traders took support form the report that the Nikkei India Manufacturing Purchasing Managers’ Index, or PMI, rose to a 5 year high of 54.7 in December from 52.6 in November. The survey highlighted that strong business performance was underpinned by the fastest expansions in output and new orders since December 2012 and October 2016 respectively. Separately, a steep rise in output of cement and steel pushed up the growth of the core sector to a 13-month high of 6.8% in November from 5% in October. The official data released by commerce and industry ministry showed a 17.3% rise in cement output and 16.6% increase in steel production in November compared with a 1.3% fall and 8.4% growth, respectively in October. Additionally, the street took some solace with government’s decision to ease norms for rectification of GST returns. The Finance Ministry has permitted businesses to rectify mistakes in their monthly returns - GSTR-3B - and adjust tax liability, a move that will help them file correct returns without fear of penalty.

Meanwhile, the upside was capped as retail inflation for industrial workers rose to 3.97% in November, 2017 mainly due to surge in prices of food items, kerosene and cooking gas. The year-on-year inflation measured by monthly CPI-IW (Consumer Price Index-Industrial Workers) stood at 3.97% for November, 2017 as compared to 3.24% for the previous month (October, 2017) and 2.59% during the corresponding month (November 2016) of the previous year. Investors took note that diesel prices have flared up to a new record level in Delhi while petrol, kerosene and jet fuel prices continue to rise in the country in line with the surge in global crude oil prices. Prices of oil products have been rising for several months, fuelled by a relentless rise in crude oil prices which have soared 40% in six months to $67 a barrel amid healthy demand and an extended agreement to cut output by oil cartel OPEC, Russia and other producers.

Traders were seen selling in Basic Materials, Capital Goods and Realty sector stocks. In scrip specific development, select auto stocks were buzzing in today’s trade as car sales picked up in December. The improved consumer sentiment on the back of a broader economic revival, a surging stock market and year-end stock clearance offers pushed up sales of passenger vehicles in December. Oil and Natural Gas Corporation (ONGC) was trading in green on making a significant oil and gas discovery to the west of Mumbai High fields in the Arabian Sea. The discovery was made in the well WO-24-3 (WO-24-C) drilled west of Mumbai High fields.

On the global front, the Asian markets were trading mostly in green, after a survey of Chinese manufacturing proved surprisingly upbeat, while the euro lurked within striking distance of its 2017 top against an ailing US dollar. The China Caixin December manufacturing PMI rose to 51.5, beating an expected 50.6 level. Sentiment was also helped by news that North Korea had offered an olive branch to South Korea, with Kim Jong Un saying he was open to dialogue with Seoul. Back home, the BSE Sensex and NSE Nifty were trading above the psychological 33,800 and 10,400 levels respectively. The market breadth on BSE was negative in the ratio of 817:1618, while 95 scrips remained unchanged.

The BSE Sensex is currently trading at 33828.07, up by 15.32 points or 0.05% after trading in a range of 33723.26 and 33964.14. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.66%, while Small cap index was down by 0.70%.

The top losing sectoral indices on the BSE were Basic Materials down by 0.55%, Capital Goods down by 0.49%, Realty down by 0.49%, Oil & Gas down by 0.46% and Consumer Disc down by 0.42%, while there were no gainers on BSE sectoral front.

The top gainers on the Sensex were Tata Motors - DVR up by 1.88%, ONGC up by 1.82%, Tata Motors up by 1.07%, NTPC up by 1.05% and Mahindra & Mahindra up by 0.99%.

On the flip side, Yes Bank down by 0.94%, SBI down by 0.93%, Asian Paints down by 0.72%, ICICI Bank down by 0.71% and Larsen & Toubro down by 0.70% were the top losers.

Meanwhile, the growth of eight core infrastructure industries expanded at a faster pace to a thirteen-month high of 6.8% in November 2017, from 4.7% in October. The growth was mainly driven by a robust performance in segments like refinery, steel and cement. This has been the highest year-on-year growth registered in the financial year 2018. According to the data released by the ministry of Commerce and Industry showed the combined Index of eight core industries stood at 123.9 in November, 2017, which was 6.8% higher compared to the index of November, 2016. Its cumulative growth during April to November, 2017-18 was 3.9%. 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 fell 0.2% in November, 2017 over November, 2016, while its cumulative index increased by 1.5% during April to November, 2017-18 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight jumped 8.2% in November, 2017 over November, 2016 and its cumulative index increased by 3.6% during April to November, 2017-18 over the corresponding period of previous year. Electricity generation having 19.85% weight surged 1.9% in November, 2017 over November, 2016 and its cumulative index rose by 4.9% during April to November, 2017-18 over the corresponding period of previous year.  

The Natural Gas production having 6.88% weight advanced 2.4% in November, 2017 over November, 2016 and its cumulative index was up by 4.4% during April to November, 2017-18 over the corresponding period of previous year. Steel production having 17.92% weight increased by 16.6% in November, 2017 over November, 2016 and its cumulative index jumped by 7.2% during April to November, 2017-18 over the corresponding period of previous year.

Crude Oil production having 8.98% weight increased by 0.2% in November, 2017 over November, 2016, while its cumulative index declined by 0.2% during April to November, 2017-18 over the corresponding period of previous year. Fertilizer production having 2.63% weight increased by 0.3% in November, 2017 over November, 2016, while its cumulative index declined 1.1% during April to November, 2017-18 over the corresponding period of previous year. On the other hand, Cement production having 5.37% weight was up by 17.3% in November, 2017 over November, 2016 and its cumulative index increased by 0.6% during April to November, 2017-18 over the corresponding period of previous year.

The CNX Nifty is currently trading at 10444.50, up by 8.95 points or 0.09% after trading in a range of 10409.65 and 10495.20. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.32%, ONGC up by 1.85%, Tech Mahindra up by 1.38%, Tata Motors up by 1.35% and Mahindra & Mahindra up by 1.20%.

On the flip side, Eicher Motors down by 2.69%, Indiabulls Housing Finance down by 2.43%, HPCL down by 2.09%, BPCL down by 1.48% and SBI down by 0.98% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 8.27 points or 0.34% to 2,475.76, Shanghai Composite increased 35.81 points or 1.08% to 3,342.98, Taiwan Weighted increased 43.51 points or 0.41% to 10,686.37, Jakarta Composite increased 61.62 points or 0.97% to 6,417.27 and Hang Seng increased 502.11 points or 1.68% to 30,421.26.

On the other hand, FTSE Bursa Malaysia KLCI decreased 16.88 points or 0.94% to 1,779.93.

Tokyo Stock Exchange was closed on account of National holiday.