Published on 13/01/2021 12:57:04 PM | Source: LKP Securities Ltd

Benchmarks trade flat in afternoon session - LKP Securities

Posted in Market Outlook| #Market Outlook #LKP Securities Ltd

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Benchmarks trade flat in afternoon session

Indian benchmarks were trading flat in afternoon session. Traders were seen in selling position for consumer durables, healthcare and IT stocks, while buying was witnessed in telecom, realty and PSU stocks. Trade sentiment remained cautious as India’s factory output or Index of Industrial Production (IIP) contracted 1.9 percent for November 2020 mainly due to poor showing by manufacturing and mining sectors. Industrial production of the country had grown at 3.6 per cent in October 2020 and 2.1 per cent in November 2019. Meanwhile, Union Ministry of Commerce and Industry has said that India's new Foreign Trade Policy 2021-2026, under formulation, will come into effect from April 1, 2021, for five years and will strive to make the country a leader in international trade. On the global front, Asian markets were trading mostly higher tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes.

The BSE Sensex is currently trading at 49525.55, up by 8.44 points or 0.02% after trading in a range of 49351.34 and 49795.19. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.12%, while Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were Telecom up by 2.56%, Realty up by 1.84%, PSU up by 1.56%, Oil & Gas up by 1.42% and Auto was up by 1.08%, while Consumer Durables down by 0.95%, Healthcare down by 0.24%, IT down by 0.13%, Energy down by 0.06% and Basic Materials was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.96%, Bharti Airtel up by 3.53%, ONGC up by 2.80%, NTPC up by 2.54% and ITC was up by 2.28%. On the flip side, HDFC down by 2.12%, Asian Paints down by 1.43%, Titan Company down by 1.21%, TCS down by 1.17% and Bajaj Finserv was down by 1.16% were the top losers.

Meanwhile, with easing prices of some food items, retail inflation of India based on the Consumer Price Index (CPI) fell sharply to 4.59 per cent in December 2020 as compared to 6.93 per cent in November 2020 and 7.35 per cent in December 2019. The December CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 per cent. The government has mandated the central bank to keep retail inflation within the range of 4 per cent with a margin of 2 per cent on either side.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in December stood at 4.07 per cent as against 7.20 per cent in November. The Urban CPI (General) stood at 5.19 per cent in December as against 6.73 per cent in November. The index value for Rural, Urban and Combined CPI (General) stood at 158.5, 156.0 and 157.3, respectively, in December 2020.

The Consumer Food Price Index (CFPI) or the inflation in the food basket eased to 3.41 per cent in the month of December, down from 9.50 per cent in November. The data indicated that the Rural CFPI stood at 3.11 per cent in December as compared to 9.64 per cent in November. The Urban CFPI stood at 4.08 per cent in December as against 9.23 per cent in November. The index value for Rural, Urban and Combined CFPI stood at 159.1, 163.4 and 160.6, respectively, in December 2020.

The 3.41 per cent growth in the food basket was due to a fall in vegetable prices that slipped (-) 10.41 per cent on-year rise in December. Apart from vegetables, other prices were however positive. The oils and fats segment saw a rise of 20.05 per cent, while that of eggs rose 16.08 per cent and pulses and products prices gained 15.98 per cent. The meat and fish segment also witnessed a rise of 15.21 per cent.

The CNX Nifty is currently trading at 14564.40, up by 0.95 points or 0.01% after trading in a range of 14526.10 and 14653.35. There were 29 stocks advancing against 20 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 5.40%, Indian Oil Corporation up by 3.93%, Bharti Airtel up by 3.38%, Adani Ports up by 3.08% and BPCL was up by 2.88%. On the flip side, HDFC down by 2.19%, Shree Cement down by 1.89%, TCS down by 1.29%, UPL down by 1.27% and Titan Company was down by 1.26% were the top losers.

Asian markets were trading mostly higher; Jakarta Composite soared 43.42 points or 0.68% to 6,439.09, Nikkei 225 surged 292.25 points or 1.04% to 28,456.59, Taiwan Weighted strengthened 269.28 points or 1.74% to 15,769.98, KOSPI rose 22.34 points or 0.71% to 3,148.29 and Straits Times was up by 9.16 points or 0.31% to 2,986.33.

On the flip side; Hang Seng decreased 33.00 points or 0.12% to 28,243.75 and Shanghai Composite was down by 14.46 points or 0.4% to 3,593.88.


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