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Major headlines

·         Government signs pact with Asian Development Bank

·         We want discussion on Agusta Westland deal

·         Aurobindo shares hit 9- month low on US price fixing lawsuit

Indian Indices: In late afternoon session, Indian equity benchmarks continued to trade in red on the back of selling in metal and oil and gas counters. Sentiments also remained downbeat as activities on FIIs desk started slowing down ahead of Christmas holiday and vacation. However, losses remained capped with chief economic Advisor (CEA) Arvind Subramanian’s statement that though the interest rate hike by the US Federal Reserve will bring volatility and uncertainty in capital flows into emerging market economies, but India is very well cushioned to absorb the impact. On the global front, European markets were trading in green as investors continued to digest the Federal Reserve’s most recent policy decision. However, Asian markets were showing tepid trend at this point of time. Back home, in scrip specific developments, Swan Energy jumped over five per cent after the Government of Gujarat decided to participate by investing 26% in equity of company's LNG port project in Gujarat and A2Z Infra Engineering edged higher after Delhi Metro Rail Corporation awarded three facility management services contacts to its material subsidiary.

The BSE Sensex is currently trading at 26484.00, down by 35.07 points or 0.13% after trading in a range of 26455.21 and 26594.55. The broader indices were trading in red; the BSE Mid cap index down by 0.25%, while Small cap index was down by 0.06%.  The CNX Nifty is currently trading at 8137.75, down by 15.85 points or 0.19% after trading in a range of 8127.45 and 8178.70. There were 19 stocks advancing against 32 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:

The government on Thursday declared that the cash shortage induced by demonetization of high value currency notes would end by mid-January by which time about Rs 3.5 crore of black money would be sucked out of the economy, leaving about Rs 12 crore in cash to finance normal transactions, assures Amitabh Kant.

Macroeconomic front:

Moody's Investors Service, a global rating agency, has said that the overall asset profile of Indian banks' property retail loan portfolio is stable, although risks are rising in the non-traditional loan against property (LAP) segment. "Growth in LAP loans has outpaced overall retail credit growth in recent years, but relatively loose underwriting practices and a tightening in credit following India's demonetization would translate into higher asset quality risk .

On the global front:

On the global front, The Chinese diplomat said that mutual cooperation between the two countries has resulted in a win-win situation for both and would help increase profitability in the coming years. Co-chairman of CII Task Force on Ease of Doing Business and CMD Chemtrols Industries K. Nandakumar said that India is at the same position where China was 10 years ago and hence there is a huge potential here considering its present demographics.

Commodity Updates:

Top Sectoral & Stock Screening:    The top gainers on the Sensex were TCS up by 2.63%, Axis Bank up by 1.96%, Power Grid Corpn. up by 1.68%, Adani Ports &Special up by 1.30% and Wipro up by 1.18%. On the flip side, Sun Pharma  down by 2.44%, Tata Motors down by 1.46%, NTPC down by 1.22%, ITC down by 1.01% and Lupin down by 0.84% were the top losers.

Top Nifty Movers:     The top gainers on Nifty were TCS up by 2.58%, Axis Bank up by 2.20%, HCL Tech. up by 1.69%, Power Grid Corpn. up by 1.57% and Adani Ports &Special up by 1.20%. On the flip side, Sun Pharma Inds. down by 2.37%, Grasim Industries down by 1.69%, Tata Motors down by 1.44%, NTPC down by 1.22% and Tata Motors - DVR down by 1.10% were the top losers.

Global Signals:

Asian markets were trading mixed; Shanghai Composite increased 5.3 points or 0.17% to 3,122.98, KOSPI Index increased 5.59 points or 0.27% to 2,042.24 and Nikkei 225 increased 127.36 points or 0.66% to 19,401.15. On the flip side, Hang Seng decreased 38.65 points or 0.18% to 22,020.75, Taiwan Weighted decreased 33.57 points or 0.36% to 9,326.78, Jakarta Composite decreased 11.4 points or 0.22% to 5,242.97 and FTSE Bursa Malaysia KLCI decreased 2.59 points or 0.16% to 1,634.40.

European Markets were trading mostly in green; UK’s FTSE 100 increased 1.29 points or 0.02% to 7,000.30, France’s CAC increased 6.71 points or 0.14% to 4,825.94 and Germany’s DAX increased 15.86 points or 0.14% to 11,382.26.