Sensex, Nifty trade near neutral lines

Indian equity benchmarks were hovering near neutral lines, with both Sensex and Nifty trading marginally higher. Negative cues from other Asian markets impacted trade over the street. Traders were seen taking a note of reports that markets regulator SEBI extended till December 24 the deadline for submission of public comments on review of the minimum public offer requirement for large issuers. In November, SEBI had put up a consultation paper on review of requirement of minimum public offer for large issuers in terms of Securities Contracts (Regulation) Rules.

On the global front, Asian markets were trading mostly in red, even after Japan's gross domestic product surged an annualized 22.9 percent in the third quarter of 2020. The Cabinet Office said that beat expectations for an increase of 21.5 percent following the 28.8 percent plunge in the previous three months. On a quarterly basis, GDP was up 5.0 percent - matching forecasts following the 8.2 percent decline in the three months prior. Capital expenditure was down 2.4 percent on quarter, exceeding expectations for a decline of 3.2 percent following the 4.5 percent fall in the second quarter.

The BSE Sensex is currently trading at 45476.25, up by 49.28 points or 0.11% after trading in a range of 45335.17 and 45728.85. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.62%, while Small cap index was down by 0.96%.

The top gaining sectoral indices on the BSE were Energy up by 1.13%, IT up by 0.33%, Realty up by 0.17% and TECK up by 0.10%, while Metal down by 1.50%, Industrials down by 1.23%, Capital Goods down by 1.14%, Power down by 1.10% and Utilities down by 1.07% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.41%, Reliance Industries up by 1.86%, Maruti Suzuki up by 1.02%, TCS up by 0.66% and HCL Tech up by 0.60%. On the flip side, Indusind Bank down by 2.25%, Sun Pharma down by 2.20%, Tech Mahindra down by 1.56%, ONGC down by 1.20% and Bharti Airtel down by 1.19% were the top losers.

Meanwhile, ratings agency ICRA in its latest report has said that the domestic construction equipment (CE) industry may see moderate volume growth this fiscal (FY21) as dealers have reported a rebound in demand in the second quarter, despite zero sales volume in April-June period on account of the nationwide lockdown. ICRA's forecast, which is based on a survey of 13 construction equipment dealers from across the country, also stated that most dealers expect a 5-10 per cent hike in prices next fiscal on account of new emission norms, which are to come into effect from April 2021Â for the CE industry.

However, the key takeaway is that despite the strong pick up in volumes, which is supporting dealer optimism, uncertainties persist. While the industry experienced significant volume contraction during April-June, dealers in most states reported strong revival in volumes from July-September quarter. It added that demand ramp up has continued during the third quarter and this is expected to result in moderate volume growth in FY2021, despite Q1 FY2021 being a complete washout in terms of volumes and business activity. Post a sharp volume contraction in FY2020 due to the general elections, the pandemic-induced lockdown and economic slowdown, the CE industry was expected to pummel during FY2021.

To assess the on-ground sentiments amongst the CE dealership fraternity and to understand their outlook for FY2021, Icra conducted a survey of 13 CE dealers in November. These dealers are spread across Maharashtra, Andhra Pradesh, Bihar, Jammu and Kashmir, Delhi, Haryana, Uttar Pradesh, Uttarakhand, Tamil Nadu, Karnataka, Kerala, Madhya Pradesh and Rajasthan. The findings indicate that 85 per cent of dealers expect to register volume growth in FY2021 as opposed to about 50 per cent of dealers expecting more than 15 per cent volume de-growth during a similar survey undertaken in April.

According to the survey, regular fund flow from the central government has supported demand from the National Highways Authority of India (NHAI), Pradhan Mantri Gram Sadak Yojana (PMGSY), irrigation projects and rural infrastructure. Further, a steady pick up in activity under the mining segment has also supported volumes from Q2 FY2021 onwards. Even as some southern and western states continue to grapple with absence of ample activity under state projects, dealers in northern and central states have reported a pick up in activity under state projects. While new projects have not been announced, activity has picked up under old projects.

The CNX Nifty is currently trading at 13364.00, up by 8.25 points or 0.06% after trading in a range of 13311.05 and 13435.45. There were 14 stocks advancing against 35 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Ultratech Cement up by 2.24%, Reliance Industries up by 1.96%, Maruti Suzuki up by 0.89%, TCS up by 0.63% and Bajaj Auto up by 0.62%. On the flip side, Adani Ports & SEZ down by 2.44%, Indusind Bank down by 2.30%, Sun Pharma down by 2.20%, Coal India down by 2.01% and Grasim Industries down by 1.81% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 146.26 points or 0.55% to 26,360.59, Nikkei 225 slipped 61.86 points or 0.23% to 26,485.58, KOSPI fell 23.75 points or 0.87% to 2,721.69, Shanghai Composite declined 8.61 points or 0.25% to 3,407.99 and Straits Times trembled 0.03 points or 0% to 2,825.48. On the flip side, Jakarta Composite soared 9.11 points or 0.15% to 5,939.87 and Taiwan Weighted strengthened 85.38 points or 0.6% to 14,341.98.