Sensex, Nifty trade volatile

Altering between green and red terrain, key equity bourses traded volatile in late afternoon session, despite firm cues from European markets. Domestic sentiments were cautious, as the Controller General of Accounts (CGA) in its latest data report showed that India’s fiscal deficit, the gap between expenditure and revenue, in the first seven months of current financial year (FY19) came in at Rs 6.24 lakh crore or 103.9% of the FY19 Budget target, on the back of lower revenue collections. Anxiety also spread among the traders with rating agency, ICRA’s latest report stating that India's current account deficit is likely to rise to 3% of GDP in the July-September quarter of current fiscal, from 2.4% in the preceding quarter, driven mainly by high crude oil prices.

However, downside remained capped, with the Indian manufacturing sector accelerating further in the month of November, buoyed by healthier inflows of new orders. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - improved to 54 in November from 53.1 in October. Some support also came with Economic Affairs Secretary Subhash Chandra Garg’s statement that foreign investors have put in Rs 10,925 crore in equity and debt instruments in November. On the sectoral front, metals stocks were trading higher, even though India's finished steel exports fell by 23.4% to 0.596 million tonnes (MT) in October 2018. According to the Joint Plant Committee (JPC), the only institution that collects and maintains data on the Indian steel and iron sector, the country had exported 0.778 MT of finished steel during the same month a year ago.

On the global front, European markets were trading in green, as Eurozone's consumer price growth slowed to its lowest level in three months in November and the core inflation unexpectedly eased. The preliminary figures from the Eurostat showed that the consumer price index rose 2% year-on-year following a 2.2% increase in October. Separately, France's consumer price inflation slowed more-than-expected in November to its lowest level in seven months. The preliminary data from the statistical office INSEE showed that the consumer price index rose 1.9% year-on-year following a 2.2% increase in October.  Asian markets were trading in green, after the US and Chinese presidents agreed to a temporary truce in the clash between the world's two largest economies. US President Donald Trump promised to suspend new tariffs on Chinese products, meaning that no additional tariffs will be imposed after January 1. As part of the deal, China will increase its purchase of American farm produce, energy and some industrial goods so as to reduce the trade deficit between the two countries. Adding some relief, the manufacturing sector in China accelerated in November but slightly. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) for November, ticked up to 50.2 from 50.1 in October.

The BSE Sensex is currently trading at 36193.39, down by 0.91 points after trading in a range of 36099.68 and 36446.16. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Utilities up by 2.78%, Power up by 2.77%, Metal up by 2.31%, Realty up by 2.01% and PSU up by 1.53%, while Healthcare down by 1.08%, Energy down by 0.55%, Auto down by 0.23% and FMCG down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 4.19%, Power Grid Corporation up by 3.61%, NTPC up by 3.11%, Yes Bank up by 3.07% and Adani Ports & SEZ up by 2.02%. On the flip side, Sun Pharma down by 7.51%, Mahindra & Mahindra down by 3.82%, Hero MotoCorp down by 1.42%, Reliance Industries down by 1.03% and Asian Paints down by 0.74% were the top losers.

Meanwhile, hitting to an eleven-month high, the Indian manufacturing sector accelerated further in the month of November, buoyed by healthier inflows of new orders. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - improved to 54 in November from 53.1 in October. This is the 16th consecutive month that the manufacturing PMI reading stood above the watershed 50 mark, which differentiates growth from contraction.

During the reported month, production at the factories witnessed growth at the second-quickest pace since October 2016, amid stronger demand conditions and greater sales. The rise was led by intermediate goods firms, although robust growth was also seen in the consumer and capital goods categories. Besides, new orders expanded at the second fastest rate in over two years, slower only than that seen in December 2017.

On the price front, cost inflation eased to a seven-month low in November month, but the revival in demand translated into improved pricing power among producers who raised their charges at a quicker rate. Meanwhile, business sentiment improved from October’s 20-month low, with Indian manufacturers forecasting better market conditions in the coming 12 months. Improved advertising campaigns was also a factor leading to predictions that production will expand in the year ahead.

The CNX Nifty is currently trading at 10882.20, up by 5.45 points or 0.05% after trading in a range of 10845.35 and 10941.20. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 7.80%, Vedanta up by 4.03%, Power Grid Corporation up by 3.52%, Hindalco up by 3.05% and GAIL India up by 3.05%. On the flip side, Sun Pharma down by 7.99%, Mahindra & Mahindra down by 3.62%, HPCL down by 3.51%, UPL down by 3.20% and Zee Entertainment down by 2.05% were the top losers.

All Asian markets were trading in green; Straits Times increased 73.20 points or 2.29% to 3,190.81, Nikkei 225 zoomed 223.70 points or 0.99% to 22,574.76, Taiwan Weighted jumped 249.84 points or 2.46% to 10,137.87, Hang Seng soared 675.29 points or 2.48% to 27,182.04, Shanghai Composite gained 66.61 points or 2.51% to 2,654.80, KOSPI rose 35.07 points or 1.64% to 2,131.93 and Jakarta Composite was up by 94.04 points or 1.53% to 6,150.16.

All European markets were trading in green; UK’s FTSE 100 added 159.14 points or 2.23% to 7,139.38, France’s CAC surged 107.08 points or 2.1% to 5,111.00 and Germany’s DAX was up by 285.07 points or 2.47% to 11,542.31.