Bourses pare gains; Sensex trades below 36,100 mark

Key Indian benchmarks pared most of their gains in late afternoon session, despite firm opening in European markets. Weak broader indices along with heavy sell off at Oil & Gas, Metal and PSU counters, dragged the markets off day’s high points. Trading sentiments got hit with a private reports stating that the battered Indian rupee will take another bruising this year, despite a recent revival, weighed down by uncertainty around national elections in May and an expected economic slowdown. However, positive growth forecast helped the markets to keep their heads above water in late noon deals. The World Bank forecasted that Indian economy is expected to grow at 7.3% in the current fiscal year 2018-19 (FY19) and will grow further at average 7.5% in the following two years.

On the sectoral front, Jewellery stocks were under pressure, amid Gem and Jewellery Domestic Council (GJC) report stating that the gold jewellery industry in the country has not witnessed any significant growth in the last two years, particularly after demonetisation and GST, while airline stocks remained in focus with civil aviation secretary R N Choubey’s statement that India will issue new safety protocols for airlines operating Airbus A320neo aircraft fitted with Pratt & Whitney engines.

On the global front, European markets were trading in green, even though Eurozone's economic sentiment index decreased more-than-expected in December to its lowest level since the start of 2017. The survey data from the European Commission showed that the economic sentiment index dropped to 107.3 from 109.5 in November. The street had predicted a score of 108.2. Asian markets were also trading in green.

The BSE Sensex is currently trading at 36030.85, up by 49.92 points or 0.14% after trading in a range of 35863.29 and 36250.54. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.25%, while Small cap index was down by 0.30%.

The top gaining sectoral indices on the BSE were FMCG up by 0.67%, Healthcare up by 0.23%, Auto up by 0.22%, Consumer Durables up by 0.19% and Bankex up by 0.03%, while Oil & Gas down by 1.85%, Metal down by 1.53%, PSU down by 1.31%, Utilities down by 1.13% and Basic Materials down by 1.08% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.81%, ITC up by 1.55%, Tata Motors up by 1.48%, Bharti Airtel up by 1.23% and HDFC up by 1.06%. On the flip side, Yes Bank down by 2.89%, Tata Steel down by 2.74%, Hero MotoCorp down by 1.95%, ONGC down by 1.42% and Vedanta down by 1.20% were the top losers.

Meanwhile, with expectations of growth in Indian consumer spending, an international organization, World Economic Forum (WEF) has said that India is poised to become the third-largest consumer market behind only the US and China. It noted that domestic private consumption is expected to grow to nearly $6 trillion by 2030 from $1.5 trillion at present.

As per the report titled 'Future of Consumption in Fast-Growth Consumer Markets', by 2030, India will move from being an economy led by the bottom of the pyramid, to one led by the middle class. Nearly 80% of households in 2030 will be middle-income, up from about 50% currently. The middle class will drive 75% of consumer spending in 2030.

World Economic Forum further highlighted that over the next decade, consumption in fast-growth consumer markets such as China, India and Southeast Asia will be reshaped by the Fourth Industrial Revolution and more than one billion first-time consumers.

The CNX Nifty is currently trading at 10815.85, up by 13.70 points or 0.13% after trading in a range of 10749.40 and 10870.40. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.14%, ITC up by 1.60%, Bharti Airtel up by 1.41%, Tata Motors up by 1.28% and HDFC up by 1.25%. On the flip side, GAIL India down by 3.68%, BPCL down by 3.45%, HPCL down by 3.23%, Yes Bank down by 2.76% and Tata Steel down by 2.66% were the top losers.

All Asian markets were trading in green; Nikkei 225 surged 223.02 points or 1.1% to 20,427.06, Hang Seng increased 586.87 points or 2.27% to 26,462.32, KOSPI rose 39.44 points or 1.95% to 2,064.71, Jakarta Composite soared 9.39 points or 0.15% to 6,272.24, Taiwan Weighted strengthened 174.71 points or 1.83% to 9,738.31, Shanghai Composite gained 17.88 points or 0.71% to 2,544.34 and Straits Times advanced 31.16 points or 1% to 3,154.10.

All European markets were trading in green; UK’s FTSE 100 rose 62.00 points or 0.90% to 6,923.60, Germany’s DAX gained 113.39 or 1.05% points to 10,917.37 and France’s CAC was up by 53.88 points or 1.13% to 4,827.15.