Markets trade in extremely tight range in early noon session

Indian equity markets were trading in an extremely tight range with Nifty and Sensex adding losses in the early noon session. Selling in Telecom, Healthcare, Realty, Consumer Durables and Bankex stocks pulled markets lower. Banking stocks were trading in red with report that banks have lost an additional income of Rs 4,000 crore due to the delay in resolution of the initial 12 large insolvency cases referred by the RBI last June. BSE Mid cap and Small cap index was also trading in negative terrain. Besides, some concerns came with private report highlighting that though India has emerged as one of the biggest ‘improvers’ in the World Bank’s Ease of Doing Business index, in some areas, including enforcement of contracts, paying taxes, and registering property, where the country performs poorly, there is much that it does not capture. Sentiments also remained weak with SBI's report stating that the sharp decline in the headline inflation print to 3.31% for October a year-year-low will result in a prolonged pause in the rates, but raises a big question mark on the Reserve Bank’s inflation forecasting. However, fresh foreign fund inflows and a strong rupee capped the losses.

On the global front, Asian markets were trading mostly in red as worries about global economic growth and trade wars dampened sentiments. The Japanese market was trading lower following the overnight sell-off on Wall Street. Back on the domestic front, non-banking finance companies (NBFC) sector remain in focus with report highlighting that the Reserve Bank of India (RBI) is unlikely to provide any special support to the sector, amid growing demand for liquidity support for NBFCs.

The BSE Sensex is currently trading at 34767.59, down by 45.40 points or 0.13% after trading in a range of 34672.20 and 34861.26. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.86%, while Small cap index was down by 0.51%.

The few gaining sectoral indices on the BSE were Oil & Gas up by 1.51%, Energy up by 1.00% and PSU up by 0.18%, while Telecom down by 1.31%, Healthcare down by 1.31%, Realty down by 1.08%, Consumer Durables down by 0.82% and Bankex down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.08%, Coal India up by 0.89%, Axis Bank up by 0.85%, Asian Paints up by 0.67% and Adani Ports up by 0.65%. On the flip side, Tata Motors down by 3.85%, Sun Pharma down by 3.32%, Tata Motors - DVR down by 2.98%, Indusind Bank down by 1.85% and SBI down by 1.31% were the top losers.

Meanwhile, after rising in the month of September, India’s retail inflation based on Consumer Price Index (CPI) softened to a one-year low of 3.31% in the month of October 2018, the back of cheaper kitchen staples, fruits and protein-rich items. The retail inflation number is the lowest since September 2017 when it touched 3.28%. The CPI was 3.77% in September 2018 and 3.58% in October 2017. Besides, inflation remained below the Reserve Bank of India’s medium-term target of 4% for the third straight month. Besides, the annual rate of food price inflation contracted by 0.86% in October 2018, as against 1.90% in October 2017 and 0.51% in September 2018.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for October 2018, stood at 2.82%, 3.97% and 3.31% respectively, compared to 3.36%, 3.81% and 3.58%, respectively in October 2017. The index value of CPI for combined stood at 140.6. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for October 2018 stood at (-) 0.57% and (-) 1.15%, respectively, compared to 1.75% and 2.13%, respectively in October 2017. The index value of CFPI for combined stood at 138.2 for the month of October.

According to the data, vegetable prices declined by 8.06% in October against a 4.15% contraction in September. Pulses and products inflation also contacted to 10.28% in the reporting month. Inflation also slowed to 0.35% in the fruit basket as against 1.12% recorded a month ago. The retail inflation also cooled in protein-rich items like cereals, eggs, milk and related products. However, inflation quickened to 8.55% for the 'fuel and light' category against 8.47% in the previous month. In non-food items, fuel inflation rose to 8.55% in October against 8.47% in September.

The CNX Nifty is currently trading at 10476.50, down by 5.70 points or 0.05% after trading in a range of 10440.55 and 10503.65. There were 26 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Indian Oil up by 4.70%, HPCL up by 4.15%, BPCL up by 3.93%, Ultratech Cement up by 1.73% and Grasim Industries up by 1.48%. On the flip side, Tata Motors down by 3.82%, Sun Pharma down by 3.44%, UPL down by 1.85%, Indusind Bank down by 1.74% and Indiabulls Housing down by 1.74% were the top losers.

Asian markets were trading mostly in red; Straits Times decreased 18.22 points or 0.6% to 3,049.93, KOSPI declined 8.83 points or 0.43% to 2,071.61, Taiwan Weighted slipped 55.37 points or 0.57% to 9,775.84 and Nikkei 225 was down 459.36 points or 2.11% to 21,810.52.

On the flip side, Jakarta Composite increased 40.04 points or 0.69% to 5,817.09, Hang Seng added 92.030 points or 0.36% to 25,725.21 and Shanghai Composite was up 21.48 points or 0.81% to 2,652.00.