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Major headlines

·         China premiums near 3-year high, Indian gold demand remains subduced

·         Business leaders urge G20 to resist protectionism

·         India seen facing tight wheat supply as Ukrainian shipments delayed

Indian Indices: Indian equity benchmarks traded in a narrow range for most part of the day and closed in green. The traders were in a cautious mode ahead of the US Federal Reserve’s Monetary Policy meeting. The industry is hoping that there will be a rate hike by the US Fed in the coming week. The market traded flat after making a higher opening in early deals with CBEC Chairman Najib Shah’s statement that the GST Council may in future decide to reduce the tax slabs under the Goods and Services Tax (GST) regime after analyzing the revenue garnered and the compensation payouts to states. He said that any change in tax slab is possible after assessing the revenues and the effect of exemptions and deductions given in the new tax regime and analyzing it with the expenditure. Some buying crept in with Prime Minister Narendra Modi’s statement that demonetization triggered an unprecedented cash crunch in the country, but defended his decision saying it will lead to long-term gains. Modi added that the government’s measure will bring a degree of inconvenience but this short-term pain will pave way for long-term gains.

The BSE Sensex ended at 26721.13, up by 26.85 points or 0.10% after trading in a range of 26707.81 and 26803.76. There were 12 stocks advancing against 18 stocks declining on the index. The broader indices ended in green; the BSE Mid cap index was up by 0.21%, while Small cap index was up by 0.53%. The CNX Nifty ended at 8255.35, up by 8.50 points or 0.10% after trading in a range of 8241.95 and 8274.95. There were 25 stocks advancing against 26 stocks declining on the index.

Market Sentiment:  

The market breadth on BSE was positive in the ratio of 1190: 1397, while 159 scrips remained unchanged.

Crporate Front:

Chairman of the Central Board of Excise and Customs Najeeb Shah asked the industry to prepare itself to implement the Goods and Services Tax (GST) with effective from April 1 at an ASSOCHAM event on Thursday. There will be GST readiness on part of the government and urged the industry to be ready.

Macroeconomic front:

As a step towards fulfilment of the Government of India’s target for installation of 40 GW rooftop solar power plants by the year 2022, Solar Energy Corporation of India (SECI) on Friday launched a tender of 1000 MW capacity for development of grid-connected rooftop solar capacity for central government ministries.

On the global front:

On the global front, Asian markets ended mixed, while Japanese stocks rose to their highest level in a year supported by Wall Street gains and solid buying of exporters on the back of a weaker yen. Malaysian Industrial Production rose to a seasonally adjusted annual rate of 4.2% in November, from 3.2% in the preceding month. European stocks were mixed as markets digested the European Central Bank’s latest policy decision and investors began to turn their attention to the Federal Reserve’s meeting next week.

Commodity Updates:

Top Sectoral & Stock Screening:    The top gaining sectoral indices on the BSE were Realty up by 1.61%, Bankex up by 1.02%, PSU up by 0.52%, Power up by 0.42% and IT up by 0.37%, while Auto down by 0.33%, Metal down by 0.29% and Capital Goods down by 0.13% were the losing indices on BSE.

Top Nifty Movers:     The top gainers on the Sensex were SBI up by 2.37%, ICICI Bank up by 2.19%, ONGC up by 1.80%, Axis Bank up by 1.33% and Tata Motors up by 0.90%. On the flip side, Bajaj Auto down by 2.05%, Coal India down by 1.59%, HDFC down by 1.32%, Mahindra & Mahindra down by 1.27% and Hero MotoCorp down by 1.08% were the top losers.

Global Signals:

Asian markets were trading mostly in red; Hang Seng declined 100.86 points or 0.44% to 22,760.98, Jakarta Composite slipped 16.36 points or 0.31% to 5,287.38, KOSPI Index decreased 6.38 points or 0.31% to 2,024.69 and FTSE Bursa Malaysia KLCI was down by 4.47 points or 0.27% to 1,639.28. On the other hand, Taiwan Weighted rose 16.82 points or 0.18% to 9,392.68, Shanghai Composite increased 17.52 points or 0.54% to 3,232.88 and Nikkei 225 was up by 230.9 points or 1.23% to 18,996.37.

All the European markets were trading in green; Germany’s DAX rose 4.85 points or 0.04% to 11,184.27, France’s CAC increased 9.13 points or 0.19% to 4,744.61 and UK’s FTSE 100 was up by 13.24 points or 0.19% to 6,944.79.