Benchmarks trade jubilantly in early deals

Indian equity benchmarks made a gap-up opening and are trading jubilantly in early deals on Tuesday, tracking positive cues from regional counterparts. Sentiments remained up-beat with report that retail inflation declined to an 18-month low of 2.19 per cent in December 2018 mainly on account of sliding prices of fruits, vegetables and fuel. The inflation based on the Consumer Price Index (CPI) was 2.33 per cent in November and 5.21 per cent in December 2017. The previous low inflation was 1.46 per cent in June 2017. CPI is the main price gauge that the Reserve Bank of India (RBI) tracks. Some support also came with apex industry body ASSOCHAM’s statement that Wholesale Price Index (WPI) has recorded 3.80 per cent for December 2018 as compared to 4.64 per cent for the previous month due to sharp decline in price of vegetables, onion and fruits. The continuing deceleration in the growth of WPI and softening of global fuel prices provide ample opportunity to MPC (monetary policy committee) to cut down policy rate at earliest which will kick start investment and revival in overall industrial growth.

On the global front, Asian markets are rallying at this point of time as markets recovered from the impact of weak economic data in Europe and China Monday that sparked concerns about slowing global growth. The US markets fell on Monday, extending their losses for second straight session, after downbeat Chinese economic data added to signs of slowing growth around the world.

Back home, banking sector stocks remained in focus with report that in a bid to align with the best corporate practices, the Finance Ministry has asked the public sector banks to gradually bring down the government's equity to 52 per cent. In scrip specific developments, M&M edged higher on unveiling new eight-seat variant of Marazzo and L&T surges as its arm won another EPCI Order from Saudi Aramco.

The BSE Sensex is currently trading at 36157.52, up by 303.96 points or 0.85% after trading in a range of 35950.08 and 36192.92. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.57%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were Energy up by 1.66%, IT up by 1.63%, TECK up by 1.47%, Oil & Gas up by 1.03% and Basic Materials was up by 0.76%, while Telecom down by 0.10% was the lone losing index on BSE.

The top gainers on the Sensex were Yes Bank up by 4.02%, Infosys up by 2.37%, Reliance Industries up by 2.00%, Asian Paints up by 1.71% and TCS up by 1.06%. On the flip side, Bharti Airtel down by 0.62%, Tata Motors - DVR down by 0.47%, Power Grid Corporation down by 0.23% and Tata Motors down by 0.03% were the top losers.

Meanwhile, India’s retail inflation based on Consumer Price Index (CPI) continued its easing trend for third straight month in December mainly on account of sliding prices of fruits, vegetables and fuel. CPI softened to an 18-month low of 2.19% in December 2018 as compared to 2.33% in November and 5.21% in December 2017. The inflation has remained below the RBI’s medium-term target of 4% for the fifth straight month and it fell to its lowest level since June 2017 of 1.46%. Besides, food inflation remained in the negative zone at 2.51% compared to (-) 2.61% in the November.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for December 2018, stood at 1.65%, 2.91% and 2.19% respectively, compared to 5.27%, 5.09% and 5.21%, respectively in December 2017. The index value of CPI for combined stood at 140.2. The data also showed that Consumer Food Price Index (CFPI) for all India Rural and Urban for December 2018 stood at (-) 2.84% and (-) 1.89%, respectively, compared to 5.08% and 4.71%, respectively in December 2017. The index value of CFPI for combined stood at 136.2 for the month of December.

The rate of price rise in vegetables, fruits and protein-rich eggs continued to decline. However, there was a marginal increase in prices of meat, fish, and pulses. Prices of vegetables declined the most, by 16.14%. Prices of sugar and confectionery fell 9.22%, and the cost of pulses and products were 7.13% lower. However, the prices of health-related goods rose 9.02%, while education-related goods were costlier by 8.38%. Fuel and light inflation was 4.54 per cent in December, down from 7.39 per cent in November on back of reduction in prices of petrol and diesel.

The CNX Nifty is currently trading at 10822.50, up by 84.90 points or 0.79% after trading in a range of 10777.55 and 10837.50. There were 43 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.74%, Zee Entertainment up by 2.80%, Wipro up by 2.74%, Infosys up by 2.19% and Reliance Industries up by 2.04%. On the flip side, Bharti Airtel down by 0.47%, Power Grid Corporation down by 0.44%, JSW Steel down by 0.16%, NTPC down by 0.03% and GAIL India down by 0.03% were the top losers.

All the Asian markets are trading in green; Nikkei 225 jumped 170.92 points or 0.84% to 20,530.62, Straits Times surged 40.82 points or 1.29% to 3,214.28, Hang Seng soared 448.24 points or 1.70% to 26,746.57, Taiwan Weighted gained 50.54 points or 0.52% to 9,758.76, KOSPI added 30.88 points or 1.50% to 2,095.40, Jakarta Composite rose 22.63 points or 0.36% to 6,358.75 and Shanghai Composite was up by 24.40 points or 0.96% to 2,560.17.