Benchmarks continue weak trade in early noon session

Indian benchmarks were trading lower in early noon session on account of selling in front line counters in absence of any upside triggers. Sentiments remained bearish with policy advocacy body US-India Strategic Partnership Forum (USISPF) saying that India’s recent changes in e-commerce foreign direct investment (FDI) rules show a lack of predictability in the regulatory environment and could add to the long list of trade issues that the country is trying to resolve with the United States.  However, down-side remain capped  with a private report penning that the government is confident of wrapping up at least three strategic disinvestments in the current fiscal year, that it will help send a signal about the Centre’s willingness to move ahead with such share sales in state-run firms.

On the sectoral front, realty, consumer durables and telecom have taken the lead, while metal, FMCG, auto and power were witnessing some profit taking. Aviation stocks are trading in green after the government cut jet fuel price by an average of 14.4 percent across India. This is the largest cut in jet fuel prices since November 2008. Meanwhile, the monthly sales numbers for the auto companies have started trickling in, as Maruti Suzuki India has reported total sales of 128,338 units in December 2018, as compared 130,066 units in December 2017, registering fall of 1.3%. In scrip specific development, shares of Lupin have surged after the company received approval for its Clobazam Oral Suspension, 2.5 mg/mL from the United States Food and Drug Administration (USFDA) to market a generic version of Lundbeck Pharmaceuticals LLC's Onfi Oral Suspension. Furthermore, CMI gained on securing L1 position for supply of cadmium catenary wire to Indian Railways.

The BSE Sensex is currently trading at 35983.98, down by 84.35 points or 0.23% after trading in a range of 35912.59 and 36224.00. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.01%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Realty up by 2.15%, Consumer Durables up by 0.45%, Telecom up by 0.34%, Healthcare up by 0.32% and Industrials was up by 0.08%, while Metal down by 0.67%, FMCG down by 0.33%, Auto down by 0.22%, Basic Materials down by 0.20% and Power was down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.39%, Yes Bank up by 1.38%, Axis Bank up by 1.25%, Bajaj Auto up by 0.62% and Bharti Airtel was up by 0.50%. On the flip side, Indusind Bank down by 1.21%, Mahindra & Mahindra down by 0.86%, Tata Steel down by 0.78%, Power Grid Corporation down by 0.75% and Asian Paints was down by 0.63% were the top losers.

Meanwhile, the growth of eight core infrastructure industries slowed to sixteenth-month low of 3.5% in November 2018, as compared to 4.8% in October 2018, due to fall in output of crude oil and fertilisers. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 128.5 in November, 2018, which was 3.5% higher compared to the index of November, 2017. Its cumulative growth during April to November, 2018-19 was 5.1%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Among eight core sectors, Coal production having 10.33% weight rose 3.7% in November, 2018 over November, 2017, and its cumulative index increased by 9.0% during April to November, 2018-19 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight increased 2.3% in November, 2018 over November, 2017 and its cumulative index surged by 5.3% during April to November, 2018-19 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight increased by 0.5% in November, 2018 over November, 2017, while its cumulative index was down by 0.7% during April to November, 2018-19 over the corresponding period of previous year. Besides, Steel production having 17.92% weight jumped by 6.0% in November, 2018 over November, 2017 and its cumulative index increased by 3.7% during April to November, 2018-19 over the corresponding period of previous year. Electricity generation having 19.85% weight increased by 5.4% in November, 2018 over November, 2017 and its cumulative index increased by 6.7% during April to November, 2018-19 over the corresponding period of previous year.

Cement production having 5.37% weight jumped 8.8% in November, 2018 over November, 2017 and its cumulative index increased by 14.2% during April to November, 2018-19 over the corresponding period of previous year. On the flip side, Fertilizer production having 2.63% weight declined by 8.1% in November, 2018 over November, 2017, and its cumulative index was down by 1.3% during April to November, 2018-19 over the corresponding period of previous year. Crude Oil production having 8.98% weight decreased by 3.5% in November, 2018 over November, 2017 and its cumulative index fell by 3.6% during April to November, 2018-19 over the corresponding period of previous year.   

The CNX Nifty is currently trading at 10830.50, down by 32.05 points or 0.30% after trading in a range of 10813.65 and 10885.30. There were 13 stocks advancing against 36 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Sun Pharma up by 1.43%, Yes Bank up by 1.32%, Axis Bank up by 1.22%, Bajaj Auto up by 0.55% and GAIL India was up by 0.50%. On the flip side, Hindalco down by 1.35%, Indusind Bank down by 1.33%, Indiabulls Housing down by 1.04%, JSW Steel down by 1.03% and Mahindra & Mahindra was down by 0.95% were the top losers.