Key benchmark indices trade flat with negative bias

Key benchmark indices were now trading flat with a negative bias in early afternoon session, on account of selling in frontline blue chip counters. Some concerns came among the traders with the S&P Global Ratings’ report that the Indian economy is shaking off its post-GST implementation woes but risks from higher oil prices have reappeared. International oil prices have been rising which has also led to increased prices of petrol and diesel and a majority of India’s import bill stem from crude oil purchases. Moreover, investors maintained cautious approach ahead of Futures and Options (F&O) derivative expiry for January series due tomorrow. However, losses were limited with Niti Aayog’s former vice chairman Arvind Panagariya’s statement that India is headed to become the world’s fifth largest economy and it has the potential to achieve 10% growth rate. In scrip specific development, Eveready Industries was up by over half a percent on entering into a JV with Universal Wellbeing to engage in the business of manufacturing/importing and marketing of FMCG in India.

On the global front, Asian markets were trading mixed, as Japan's benchmark took a rest from a spate of recent jumps. Besides, worries over a resurgence of trade tensions overshadowed regional markets. Back home, the BSE Sensex is currently trading at 36135.53, down by 4.45 points or 0.01% after trading in a range of 36036.51 and 36268.19. There were 13 stocks advancing against 17 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in red; the BSE Mid cap index was down by 0.42%, while Small cap index was down by 0.65%.

The top gaining sectoral indices on the BSE were IT up by 1.95%, TECK up by 0.89%, Healthcare up by 0.76% and FMCG up by 0.17%, while Telecom down by 2.86%, Consumer Durables down by 1.61%, Metal down by 1.21%, Basic Materials down by 1.05% and Energy down by 1.01% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.01%, Dr. Reddy’s Lab up by 2.68%, Sun Pharma up by 2.51%, Yes Bank up by 1.42% and ITC up by 1.34%. On the flip side, Bharti Airtel down by 4.73%, Tata Motors down by 2.44%, ICICI Bank down by 2.13%, Tata Steel down by 1.69% and Reliance Industries down by 1.68% were the top losers.

Meanwhile, expressing confidence about growth potential in Indian economy, Finance Minister Arun Jaitley has said that the country may be among the top three largest economies in the world over the period of next 25 years as it had already shown its capacity to grow even in adverse conditions. He also said that India stood as an exception in a world where most countries had started to increasingly look inwards.

The minister has stated that the growth story of Asean countries was quite similar to the Indian story as growth eluded both these regions when the Western world was growing at a fast pace. He also pointed out that when the Western world was growing faster, when the industrial revolution was paying dividends to that part of the world, these were the countries which were still struggling. He noted that Indian economic growth and development was somewhat a latter prospect. Adding further, he said that Indian story was also somewhat similar as from a very modest growth rate in the previous 25 years, the country had picked up and had now reached a point where it had become one of the fastest growing economies.

Jaitley further said that trade with Asian countries was of great importance to India as Look East Policy was one of the essential pillars of Indian foreign policy. He also noted that India and the Asean nations represent an aspirational world and this aspirational world is what houses two billion people and trade has the capacity to give that necessary impetus to the economy. He also believed that expanding the trade relations between Asean countries and India would lead to mutual benefits for both regions.

The CNX Nifty is currently trading at 11076.45, down by 7.25 points or 0.07% after trading in a range of 11046.15 and 11110.10. There were 23 stocks advancing against 26 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were TCS up by 3.13%, Dr. Reddy’s Lab up by 2.76%, GAIL India up by 2.62%, Sun Pharma up by 2.36% and Tech Mahindra up by 2.21%. On the flip side, Bharti Airtel down by 5.00%, Tata Motors down by 2.66%, Hindalco down by 2.32%, ICICI Bank down by 2.21% and HPCL down by 1.83% were the top losers.

Asian markets were trading mixed; Nikkei 225 decreased 183.37 points or 0.76% to 23,940.78, Taiwan Weighted was down by 100.95 points or 0.9% to 11,152.16, Jakarta Composite shed 20.58 points or 0.31% to 6,614.76 and FTSE Bursa Malaysia KLCI dropped 0.71 points or 0.04% to 1,837.33. On the flip side, KOSPI Index increased 1.4 points or 0.06% to 2,538.00, Shanghai Composite was up by 5.34 points or 0.15% to 3,551.84 and Hang Seng rose 6.76 points or 0.02% to 32,937.46.