Monday’s trading session was clearly of consolidation
as the Indian frontline indices appeared a bit fatigued and remained in
directionless trajectory throughout the day. However, the benchmarks
managed to end the session in positive territory on pinning hopes that
the deadlock over the GST bill will finally end. Market witnessed
bargain-hunting as well as short covering throughout the session amid
lack of direction, with caution gripped by the currency exchange, the
upcoming Union Budget, General Anti-Avoidance Rule (GAAR), impending
state elections, and flux in US policy. Sentiments got some support with
report that exports jumped for the fourth month to 5.7 per cent in
December to $23.8 billion, the highest since March 2015.
As many as 18
of the 30 exporting sectors registered growth. Further, Investors’
morale remained upbeat as Moody's Investors Service and its Indian
affiliate ICRA said India will remain one of the fastest growing major
economies globally in 2017, although GDP growth will moderate in the
first half of the year, as the economy adjusts after demonetisation.
The rating agency also believes that the government will likely achieve
its fiscal deficit target of 3.5% of GDP for the current fiscal year
ending March 31, 2017. However, gains remained capped on the report that
India's wholesale inflation firmed up in December led by higher
inflation in non-food products. Data released by commerce and industry
ministry showed WPI inflation at 3.39% in December compared with 3.15%
in November. WPI inflation in manufactured products, which has a 64.97%
weight in the index, rose to 3.6% from 3.2% in the previous month, while
Food inflation turned negative as food prices fell 0.7% in December
2016 from a year ago against a 1.54% rise in the previous month.
Meanwhile, Realty stocks gained traction after market regulator SEBI
said Indian mutual funds will be allowed to invest in real estate
investment trusts (REITs) and infrastructure investment trusts (InvITs),
while Oil marketing companies such as IOC and BPCL rose after they
hiked petrol prices by 42 paise a litre on Sunday, the fourth increase
in 6 weeks, and diesel rate by Rs 1.03 a litre, the second hike in a
fortnight. Also, public sector banks (PSBs) too came into limelight on
report that the Finance Ministry is likely to finalize capital infusion
plan for PSBs this week.(Source:livemint)
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