Markets continue choppy trade in late morning session

Key Indian benchmarks continued their choppy trade in late morning session, despite firm Asian markets and positive December manufacturing PMI data. 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. Sentiments remained downbeat as retail inflation for industrial workers rose to 3.97 per cent in November 2017 as compared to 3.24 per cent for the previous month, mainly due to surge in prices of food items, kerosene and cooking gas. The traders took note of report which has pointed oil, inflation as risk factors, stating that India's economic growth is likely to pick up in the New Year but rising oil prices and a firming inflation may spoil the party. Besides, higher selling in Oil & Gas, Realty and Telecom sectors along with weak broader indices, too kept the markets down. However, downside remained capped after 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.

On the global front, Asian markets were trading mostly in green, the first trading day of 2018, as investors took support from upbeat China manufacturing PMI data for the month of December. Sentiments were also boosted after North Korean leader Kim Jong Un said he is open to talks with South Korea. Back home, in scrip specific development, Coal India gained after the company reported provisional production of 54.63 million tonnes (MT) in December 2017, as against a target of 58.89 MT.

The BSE Sensex is currently trading at 33805.66, down by 7.09 points or 0.02% after trading in a range of 33723.26 and 33964.14. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.59%, while Small cap index was down by 0.55%.

The few gaining sectoral indices on the BSE were Power up by 0.10%, IT up by 0.02% and Metal up by 0.02%, while Oil & Gas down by 0.58%, Realty down by 0.58%, Consumer Disc down by 0.51%, Telecom down by 0.45% and PSU down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 2.02%, ONGC up by 1.69%, Tata Motors up by 1.39%, Mahindra & Mahindra up by 1.14% and Coal India up by 1.09%. On the flip side, SBI down by 1.01%, Adani Ports & SEZ down by 0.92%, Hindustan Unilever down by 0.84%, Maruti Suzuki down by 0.82% and Asian Paints down by 0.81% were the top losers.

Meanwhile, the Union Law Ministry has shot down a proposal of Securities and Exchange Board of India (Sebi) seeking additional powers for itself to impose fines besides issuing suspension and termination orders to stock brokers, as well as annulling the central government’s power to frame rules on holding inquiries and imposing penalties against bourse violators.

The Finance Ministry had, initially, supported Sebi’s August 2017 proposal that it be given powers to levy monetary penalty in addition to issuing punitive directions. Sebi argued that a dual authority was 'resulting in substantial delay and duplication of proceedings on the same cause of action'. In October 2017, Sebi sent a second proposal suggesting that a 'uniform procedure' be put in place for piloting all enforcement proceedings under the securities laws.

At present, Sebi is not empowered to impose monetary penalties - it merely issues disciplinary orders against errants while the monetary fine is adjudicated upon by a subordinate Sebi officer appointed by Sebi’s board. This board includes top officials from the Finance Ministry.

The CNX Nifty is currently trading at 10429.65, down by 5.90 points or 0.06% after trading in a range of 10409.65 and 10495.20. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.07%, Tech Mahindra up by 1.76%, ONGC up by 1.74%, Tata Motors up by 1.48% and Mahindra & Mahindra up by 1.27%. On the flip side, Eicher Motors down by 2.85%, HPCL down by 2.47%, Indiabulls Housing Finance down by 2.31%, BPCL down by 1.95% and Aurobindo Pharma down by 1.68% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 8.73 points or 0.35% to 2,476.22, Shanghai Composite increased 37.99 points or 1.15% to 3,345.16, Jakarta Composite increased 62.85 points or 0.99% to 6,418.50, Taiwan Weighted increased 67.87 points or 0.64% to 10,710.73 and Hang Seng increased 542.24 points or 1.81% to 30,461.39.

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