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Markets continue to trade in red zone
Dec-18-2018

Indian equity benchmarks continued to trade in red zone in early noon session, with Sensex and Nifty trading below at 36,100 and 10850 levels, respectively, amid a selloff in global markets ahead of the US Federal Reserve monetary policy decision due on December 19. Shares of IT companies are trading lower as an appreciating rupee is weighing on marquee names such as Infosys and Wipro. Traders were seen in selling position for IT, TECK, Energy, Bankex and FMCG stocks, while buying was witnessed in Telecom, Capital Goods, PSU, Power and Industrials stocks.  Sentiments remained dampened with a report stating that total liabilities of the government increased to Rs 82 lakh crore at end-September from Rs 79.8 lakh crore at end-June this year, as per the latest data on public debt. Nearly 26.6 per cent of the outstanding dated securities had a residual maturity of less than five years.

On the global front, Asian markets were trading in red, as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. Back home, Rubber stocks are buzzing with a private report that the government has taken various measures to help rubber growers. These include regulating the import of natural rubber and increasing the import duty on dry rubber. The development comes against the backdrop of falling prices, which are impacting the rubber farmers.

The BSE Sensex is currently trading at 36076.18, down by 193.89 points or 0.53% after trading in a range of 36046.52 and 36226.38. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index lost 0.04%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Telecom up by 1.25%, Capital Goods up by 0.55%, PSU up by 0.34%, Power up by 0.33% and Industrials was up by 0.25%, while IT down by 1.23%, TECK down by 1.11%, Energy down by 0.38%, Bankex down by 0.36% and FMCG was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.03%, Bharti Airtel up by 1.43%, Mahindra & Mahindra up by 0.73%, Larsen & Toubro up by 0.67% and Power Grid Corporation was up by 0.57%. On the flip side, Infosys down by 2.12%, Wipro down by 1.87%, HDFC down by 1.18%, HDFC Bank down by 1.14% and Indusind Bank was down by 1.14% were the top losers.

Meanwhile, Export-Import Bank of India (Exim Bank) has said that exports growth rate in India will surge to 7 percent in Q3 (October- December) 2018-19. The release of the estimates, done by the city-headquartered policy bank using in-house modelling method, comes days after official data showed the country’s merchandise exports grew by a meagre 0.80 percent to $26.5 billion in November, mainly due to a high base effect. It has pointed out that a double-digit contraction in exports of gems and jewellery and engineering goods in November, which impacted the overall growth.

The Exim Bank estimate said merchandise exports will go up to $82.39 billion for the third quarter of the fiscal year, as against $ 77 billion. It also noted that non-oil exports will grow 7.20 percent to $71.45 billion during the same period, as against the $66.65 billion in the year-ago period.

Exim Bank has developed an in-house model to generate an export leading index (ELI) for India to track and forecast the movement in exports on a quarterly basis. The ELI modelling will keep getting updated and the findings will be released by the bank on a regular basis. The model and forecast have been reviewed by a standing technical committee of domain experts.

The CNX Nifty is currently trading at 10826.55, down by 61.80 points or 0.57% after trading in a range of 10819.10 and 10852.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.07%, Bharti Airtel up by 1.02%, Mahindra & Mahindra up by 0.93%, HPCL up by 0.81% and Larsen & Toubro was up by 0.70%. On the flip side, Zee Entertainment down by 4.40%, UPL down by 3.06%, Infosys down by 2.30%, Tech Mahindra down by 1.94% and Wipro was down by 1.86% were the top losers.

Asian markets were trading in red, Nikkei 225 slipped 386.07 points or 1.8% to 21,120.81, Straits Times trembled 61.18 points or 1.96% to 3,053.07, Hang Seng decreased 369.68 points or 1.42% to 25,718.30, Taiwan Weighted dropped 68.71 points or 0.7% to 9,718.82, KOSPI fell 10.36 points or 0.5% to 2,060.73, Shanghai Composite declined 27.96 points or 1.08% to 2,570.01 and Jakarta Composite was down by 45.54 points or 0.75% to 6,043.77.

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