Indices pare some gains in early noon session

Markets pared some initial gains but continued to trade in green in early noon session amid buying in blue chip stocks from across various sectors. Buying in FMCG, Realty, Bankex and Capital Goods stocks helped markets to trade higher. Some optimism came with the positive global markets along with value buying and hopes of an ease in the monitory policy with the appointment of Shaktikanta Das as the RBI chief pushed the key equity indices. Further, sentiments remained up-beat on hopes that RBI is likely to cut rate after CPI inflation eased to 2.33 percent in November 2018. Traders got some support as India's industrial output grew at an 11-month high of 8.1 per cent in October mainly on the back of mining, power and manufacturing sectors coupled with higher offtake of capital as well as consumer durable goods. Appreciation in rupee by 45 paise to 71.56 in morning after the new RBI governor Shaktikanta Das took charge too supported investors’ sentiment. The broader indices were also trading in green.

On the global front, Asian markets were trading in green, as investors breathed a sigh of relief after British Prime Minister Theresa May survived a no-confidence vote, and as China appeared to be taking more steps to meet US demands to open its markets. Back home, on scrip specific development, Bandhan Bank stocks are trading higher as the bank has opened five branches and planning to add 40 more before the end of December, taking the total number to 978, which came after receiving prior approval from the Reserve Bank of India (RBI) for opening the new branches.

The BSE Sensex is currently trading at 35936.82, up by 157.75 points or 0.44% after trading in a range of 35918.67 and 36047.99. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 0.85%.

The top gaining sectoral indices on the BSE were FMCG up by 1.09%, Realty up by 0.98%, Bankex up by 0.97%, Capital Goods up by 0.91%, Industrials up by 0.78%, while Metal down by 0.25%, IT down by 0.15%, TECK down by 0.10% and Consumer Durables was down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.82%, Tata Motors - DVR up by 1.67%, Tata Motors up by 1.56%, Indusind Bank up by 1.22% and Larsen & Toubro was up by 1.15%. On the flip side, Sun Pharma down by 1.44%, TCS down by 1.39%, Coal India down by 1.13%, Adani Ports &Special down by 0.75% and NTPC was down by 0.53% were the top losers.

Meanwhile, continuing easing trend for the second straight month, India’s retail inflation based on Consumer Price Index (CPI) cooled down to a 17-month low of 2.33% in the month of November 2018, as compared to 4.88% in the same month of previous year. The inflation softened mainly on account of decline in prices of kitchen essentials like vegetables, eggs and pulses. It was lower than this in June 2017 when it stood at 1.46%. Besides, CPI for October 2018 has been revised slightly up at 3.38% from 3.31% earlier. The overall food inflation showed a negative print of 2.61% in November against (-) 0.86% in October and 4.35% in the corresponding month of last year.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for November 2018, stood at 1.71%, 3.12% and 2.33% respectively, compared to 4.79%, 4.90% and 4.88%, respectively in November 2017. The index value of CPI for combined stood at 140.8. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for November 2018 stood at (-) 2.33% and (-) 3.04%, respectively, compared to 4.04% and 4.90%, respectively in November 2017. The index value of CFPI for combined stood at 137.8 for the month of November.

According to the data, vegetables prices showed a sharp decline with inflation standing at (-) 15.59% in November as against (-) 8.06% in the previous month. For pulses and its products, the rate of deflation slowed a tad at (-) 9.22% from (-) 10.28%. Protein rich eggs inflation came in at (-) 3.92% as against 2.21% in October. For fuel and light category, the rate of price rise eased to 7.39% during the month from 8.55%. However, meat and fish turned costlier at 4.99% from 3.02%. For fruits, the inflation moderated to 0.21% from 0.35%.

The CNX Nifty is currently trading at 10776.25, up by 38.65 points or 0.36% after trading in a range of 10773.25 and 10816.55. There were 26 stocks advancing against 23 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Indiabulls Housing up by 8.03%, HPCL up by 2.01%, SBI up by 1.61%, Tata Motors up by 1.46% and Grasim Industries was up by 1.38%. On the flip side, UPL down by 2.30%, Sun Pharma down by 1.61%, TCS down by 1.48%, Coal India down by 1.42% and Cipla was down by 1.08% were the top losers.

Asian markets were trading in green, Nikkei 225 surged 229.23 points or 1.06% to 21,831.98, Jakarta Composite soared 55.02 points or 0.9% to 6,170.60, Straits Times advanced 6.56 points or 0.21% to 3,106.55, KOSPI rose 14.67 points or 0.7% to 2,097.24, Shanghai Composite gained 35.05 points or 1.35% to 2,637.20, Hang Seng increased 242.47 points or 0.93% to 26,429.18 and Taiwan Weighted strengthened 25.87 points or 0.26% to 9,842.32.