Markets remain in tight range with a negative bias

Indian markets are witnessing mild correction in the late noon trade on Monday; traders are remaining on sidelines ahead of the discussion and vote on FDI in parliament on December 4 and December 5 respectively. Though, the data from the macro front has been good from the Indian perspective as well as from the global one, but traders are taking cautious approach. Also, there was weakness in rupee which was weighing down the sentiments. The domestic currency has lost traction due to dollar demand from importers including gold and oil firms. The global cues too are not supportive as most of the Asian peers ended in red despite good economic data from the China and Japan, however some of the European markets have made a positive start. Back home, on sectoral front high beta realty sector has taken the lead, followed by metal, power and oil & gas. The improving manufacturing output has slightly disappointed the rate sensitives’ and banking and consumer durables were trading lower. Though, the broader indices continue to remain firm, trading up by about a percent.

The BSE Sensex is currently trading at 19,301.63, down by 38.27 or 0.20% and has touched a high and a low of 19,416.45 and 19,257.57 respectively. There were 12 stocks advancing against 18 declines on the index.  The market breadth on the BSE was positive; there were 1,614 shares on the gaining side against 1,185 shares on the losing side while 131 shares remain unchanged.

The broader indices were trading firm; the BSE Mid cap and Small cap indices rose 1.14% and 0.79% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.47%, Metal up by 1.07%, Oil & Gas up by 0.69%, Power up by 0.59% and Capital Goods was up by 0.33%, while FMCG down by 0.47%, Bankex down by 0.45%, CD down by 0.20%, TECk down by 0.10% were the losers on the BSE.

The top gainers on the Sensex were BHEL up by 1.74%, Tata Steel up by 1.66%, M&M up by 1.52%, Maruti Suzuki up by 1.27% and SBI up by 1.24%.

On the other hand, HDFC Bank down by 2.41%, Bharti Airtel down by 1.31%, HDFC down by 1.09%, NTPC down by 1.08% and ITC down by 0.92% were the major losers on the Sensex.

Meanwhile, indicating further improvement in the health of the Indian manufacturing sector, the seasonally adjusted HSBC Purchasing Managers’ Index, a composite indicator of operating conditions in the manufacturing economy posted a good advancement in November, surging to their five-month high to 53.7 from 52.9 in October.

With this numbers, Indian goods-producing sector has shown output growth advancement for the forty-fourth consecutive month, backed by increase in order book volumes combined with a depletion of post-production inventories.

As per the report, new orders and export sales both increased at manufacturing companies in India during November. While, order book volumes showed fastest expansion since June, the new export orders reported sharpest growth in last five months. Demand was reportedly stronger in both domestic and international markets. In line with higher input costs, prices charged by manufacturers too increased during November.

Indian manufacturing companies increased their input buying during November for the straight 44-month and the pre-production inventories at manufacturing firms increased in November continuing since May. Despite a slow pace, job creation in the Indian manufacturing sector was recorded for the ninth successive month in November.

The S&P CNX Nifty is currently trading at 5,868.90, down by 10.95 points or 0.19% and has touched a high and a low of 5,899.15 and 5,855.30 respectively. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were UltraTech Cement up by 3.01%, ACC up by 2.82%, JP Associate up by 1.72%, Tata Steel up by 1.63% and BHEL up by 1.49%.

On the flip side, HDFC Bank down by 2.54%, IDFC down by 2.17%, HDFC down by 1.36%, Bharti Airtel down by 1.20% and NTPC down by 1.20% were the top losers on the Nifty.

The Asian markets have made a mixed close; Shanghai Composite was down by 1.03%, Hang Seng lost 1.19%, KLSE Composite ended lower by 0.22% and Straits Times was down by 0.08%. On the other hand, Nikkei 225 gained 0.13%, Jakarta Composite was up by 0.62%, Seoul Composite was up by 0.37% and Taiwan Weighted was up by 0.26%.

The European markets are trading mixed, France’s CAC 40 declined by 0.95%, Germany’s DAX was up by 0.38% and the United Kingdom’s FTSE 100 has gained 0.31%.