Benchmarks trade lackluster in the afternoon deals of penultimate F&O expiry session

In the afternoon deals of penultimate session of F&O expiry, benchmark equity indices are trading lackluster, cautiously awaiting the opening of European markets for further direction. Local equity markets, after slipping in red and consequently rebounding in green, albeit with slender gains, are oscillating in thin range from early deals on account of prevailing holiday mood. However, off day’s low, Sensex and Nifty, are trading past the crucial 21,100 and 6,250 levels respectively. Nevertheless, broader indices seem to be in cheerful mood and are up with gains of over half a percent.

On the global front, Asian markets continued to trade upbeat after Wallstreet rang up more records and upbeat U.S. spending data burnished the outlook for the global economy, with Japan's Nikkei hitting a 2013 high after Tokyo markets opened following a holiday.

Closer home, despite being the lackluster session of trade, most of the sectoral indices were trading in green. Only exceptions to this were stocks from Metal and banking counters, which were the only two laggards. However, stocks from Capital Goods, Healthcare and Consumer Durable pivotals were the prominent gainers of the session. The overall market breadth on BSE is in the favour of advances which thumped declines in the ratio of 1309:857; while 146 shares remained unchanged

The BSE Sensex is currently trading at 21105.78, up by 4.75 points or 0.02% after trading in a range of 21156.92 and 21073.09. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices continued to trade with fervor; with BSE Midcap and Smallcap indices were trading higher by 0.65% and 1.09% respectively.

The gaining sectoral indices on the BSE were Capital Goods up by 1.00%, Healthcare and Consumer Durables up by 0.59% each, Auto up by 0.29% and Realty, Oil & Gas were up by 0.21% each. While Metal down by 1.06% and Bankex down by 0.10% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 1.61%, BHEL up by 1.48%, L&T up by 1.28%, NTPC up by 0.88% and M&M up by 0.74%. On the flip side, SSLT down by 2.46%, Tata Power down by 2.13%, HDFC down by 1.11%, Tata Steel down by 0.83% and Hindalco Industries down by 0.73%.

Meanwhile, amid rising concerns over the increasing inflation in the country, Chairperson of Commission for Agricultural Costs and Prices (CACP), Ashok Gulati expects that retail inflation in the country is likely to ease on the back of projected drop in food prices in coming months. The WPI inflation accelerated to a 14-month high of 7.52 percent in November, while retail inflation quickened to a high of 11.24 percent during the reported month, mainly on account of high food prices.

Ashok Gulati further added that vegetable prices will definitely come down and the prices of wheat and rice would also come down, if the government releases stocks. The government should liquidate 20 million tonnes of wheat and rice to contain rising prices as India has huge stocks of cereals. Referring to poor storage facilities in the country, CACP chairperson expressed the need for setting up sophisticated cold storages in the country. The Inflation in food articles rose by 19.93% on y-o-y basis in the reported month as against 18.19% in October owing to supply side constraints such as inadequate transportation system and poor storage facilities.

Furthermore, Ashok Gulati has stressed that processed foods should be encouraged to help the farmers and consumers and also made a pitch for free trade in vegetables with no export controls.

The CNX Nifty is currently trading at 6,289.60, up by 5.10 points or 0.08% after trading in a range of 6,301.50 and 6,278.15. There were 29 stocks advancing against 21 declining on the index.

The top gainers of the Nifty were Ranbaxy up by 3.00%, Ambuja Cement up by 1.87%, BHEL up by 1.54%, Bajaj Auto up by 1.50% and Ultra Cement up by 1.46%. On the flip side, SSLT down by 2.53%, Tata Powers down by 2.19%, Jindal Steel down by 1.49%, HDFC down by 1.03% and IndusInd Bank down by 0.92% were the major losers on the index.

The Asian equity indices were trading mixed; Hang Seng up by 1.13%, Seoul Composite up by 0.24%, KLSE Composite up by 0.29%, Nikkei 225 up by 0.12% and  Straits Times up by 0.36%, while, Shanghai Composite down by 0.10%, Jakarta Composite down by 0.22%, and Taiwan Weighted edged lower by 0.07%, were the losers.