Markets remain firm on sustained buying

Indian equity markets were trading in fine fettle with Sensex and Nifty crossing 47,900 and 14,000 levels in the afternoon session on the back of buying in Capital Goods, PSU and IT stocks. Gains in frontline blue chip stocks such as Mahindra & Mahindra, TCS and SBI also helped to lift the markets. Firm trade persists on Dalal street as the retail inflation for industrial workers eased to 5.27 per cent in November compared to 5.91 per cent in October, mainly due to lower prices of certain food items. Adding optimism, Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data indicating that foreign direct investment (FDI) equity inflows into India increased by 21 percent to $35.33 billion during April-October period of FY21. Traders seem to have overlooked report stating that contracting for the ninth consecutive month, the growth of eight core infrastructure industries dropped by 2.6 per cent in November 2020 as compared to same period of last year, mainly due to decline in production of natural gas, refinery products, steel and cement. In scrip specific developments, NCC jumped on winning Rs 8,980 crore orders in December and Tips Industries surged on film biz demerger plan.

The BSE Sensex is currently trading at 47902.74, up by 151.41 points or 0.32% after trading in a range of 47771.15 and 47954.54. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.93%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.05%, PSU up by 0.93%, IT up by 0.87%, Industrials up by 0.85% and Auto was up by 0.84%, while Bankex down by 0.08% was lone losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.49%, TCS up by 1.60%, SBI up by 1.29%, Maruti Suzuki up by 1.02% and ITC was up by 0.77%. On the flip side, ICICI Bank down by 0.95%, Sun Pharma down by 0.40%, Hindustan Unilever down by 0.32%, Power Grid Corporation down by 0.26% and Titan Company was down by 0.26% were the top losers.

Meanwhile, contracting for the ninth consecutive month, the growth of eight core infrastructure industries dropped by 2.6 per cent in November 2020 as compared to same period of last year, mainly due to decline in production of natural gas, refinery products, steel and cement. The production of eight core sectors had recorded a growth of 0.7 percent in November 2019. 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, Crude Oil production having 8.98 percent weight dropped by 4.9 percent in November, 2020 over November, 2019 and its cumulative index declined by 6.0 percent during April to November, 2020-21 over the corresponding period of previous year. Natural Gas production having 6.88 percent weight declined by 9.3 percent in November, 2020 over November, 2019 and its cumulative index declined by 12.1 percent during April to November, 2020-21 over the corresponding period of previous year.

Petroleum Refinery production having 28.04 percent weight declined by 4.8 percent in November, 2020 over November,2019 and its cumulative index declined by 14.9 percent during April to November, 2020-21 over the corresponding period of previous year. Steel production having 17.92 percent weight declined by 4.4 percent in November, 2020 over November, 2019 and its cumulative index declined by 19.4 percent during April to November, 2020-21 over the corresponding period of previous year. Cement production having 5.37 percent weight declined by 7.1 percent in November, 2020 over November, 2019 and its cumulative index declined by 19.5 percent during April to November, 2020-21 over the corresponding period of previous year.

On the other hand, Coal production having 10.33 percent weight increased by 2.9 percent in November, 2020 over November, 2019 and its cumulative index fell by 2.6 percent during April to November, 2020-21 over corresponding period of the previous year. fertilizers production having 2.63 percent weight increased by 1.6 percent in November, 2020 over November, 2019 and its cumulative index increased by 3.8 percent during April to November, 2020-21 over the corresponding period of previous year. Electricity generation having 19.85 percent weight increased by 2.2 percent in November, 2020 over November, 2019, while its cumulative index declined by 4.7percent during April to November, 2020-21 over the corresponding period of previous year.

The CNX Nifty is currently trading at 14023.05, up by 41.30 points or 0.30% after trading in a range of 13991.35 and 14037.25. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.50%, TCS up by 1.80%, UPL up by 1.24%, SBI up by 1.18% and Cipla was up by 1.04%. On the flip side, ICICI Bank down by 1.07%, SBI Life Insurance down by 0.98%, Hindalco down by 0.98%, Power Grid Corporation down by 0.40% and Grasim Industries was down by 0.39% were the top losers.