Indian markets trade flat with positive bias

Indian equity benchmarks were trading flat with a positive bias in early afternoon session, on account of buying in frontline blue chip counters. Investors took support with a survey by economic think tank NCAER which has enlightened that the Business Confidence Index rose 9.1% in December quarter 2017 over the previous three months as overall sentiment remained buoyant. Moreover, better-than-expected key macro-economic data too provided some support to the major indices. India’s factory output grew at a robust 7.1% in December, while retail inflation slowed to 5.07% in January as food inflation softened. However, gains were too small as anxiety spread among the traders with Care Ratings’ latest report stating that revenue growth of India Inc nearly halved to 9.3 per cent in the third quarter from 17.7 per cent a year-ago, due to a combination of factors, including the ongoing restocking process and adjustment to GST at the SME level. Similarly, net profit too clipped lower at 24.6 per cent for the three months to December 2017 from 25.3 per cent a year-ago. In scrip specific development, KPIT Technologies was up by over two percent on expanding its mobility solution portfolio.

On the global front, Asian markets were trading mostly in green, following positive lead from Wall Street. However, investor nerves were strained ahead of a US inflation report that could soothe, or inflame, fears of faster rate hikes globally. Back home, the BSE Sensex is currently trading at 34300.65, up by 0.18 points after trading in a range of 34264.83 and 34473.43. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.73%, while Small cap index was up by 0.81%.

The top gaining sectoral indices on the BSE were Realty up by 1.41%, Telecom up by 0.91%, Metal up by 0.85%, Consumer Durables up by 0.78% and Capital Goods up by 0.74%, while PSU down by 0.97%, Bankex down by 0.83%, Power down by 0.40%, Utilities down by 0.30% and Healthcare down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 2.54%, Bharti Airtel up by 2.48%, Wipro up by 2.47%, Coal India up by 1.87% and Reliance Industries up by 1.13%. On the flip side, Axis Bank down by 2.68%, SBI down by 1.98%, Yes Bank down by 1.76%, Power Grid down by 1.72% and ONGC down by 1.62% were the top losers.

Meanwhile, India’s oldest and largest independent think tank, National Council of Applied Economic Research’s (NCAER’s) Business Confidence Index (BCI) registered a substantial increase of 9.1 percent in October-December of 2017, over July-September quarter, as overall sentiment regarding production, domestic sales, exports, imports of raw materials, and pre-tax profits remained buoyant.

NCAER has pointed out that these improved sentiment were broad-based with all the sectors showing rising trends for all these components between the two periods. Besides, it observed that there was a considerable improvement in the situation pertaining to labour employment and wages over the last three months, and expectations about future labour employment and wages were optimistic.

The survey stated that Business Confidence Index fell 12.9 percent in the July-September, as the economy was still adjusting to the implementation of goods and services tax (GST), affecting business sentiment. NCAER is one of the India's oldest economic think tanks, set up in 1956 at the behest of Prime Minister Jawaharlal Nehru, to inform policy choices for both public and private sectors.

The CNX Nifty is currently trading at 10543.85, up by 4.10 points or 0.04% after trading in a range of 10527.95 and 10590.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 3.59%, Bajaj Finance up by 2.73%, Adani Ports & SEZ up by 2.55%, Bharti Airtel up by 2.49% and Tech Mahindra up by 2.49%. On the flip side, Bharti Infratel down by 3.39%, Axis Bank down by 3.16%, SBI down by 2.16%, Yes Bank down by 2.07% and Power Grid down by 1.89% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.82 points or 0.04% to 1,833.84, Shanghai Composite rose 13.75 points or 0.43% to 3,198.70, KOSPI Index added 26.64 points or 1.11% to 2,421.83 and Hang Seng was up by 535.51 points or 1.79% to 30,375.04.

On the flip side, Nikkei 225 decreased 90.51 points or 0.43% to 21,154.17 and Jakarta Composite was down by 0.06 points or 0% to 6,578.11.