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Benchmarks trade lower in early deals; Nifty slips below 11,800 mark
Jun-21-2019

Indian equity markets have made negative start and are trading lower with losses of over one third of a percent in early deals on Friday. Sensex and Nifty are trading below their psychological levels of 39,500 and 11,800, respectively. Weak cues from Asian peers and higher crude oil prices weighted down on investors sentiments. Some cautiousness also came in with the Reserve Bank of India’s (RBI) report that both bank credit and deposits slowed to 9.92 percent and 12.31 percent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7. Also, the RBI’s minutes of the monetary policy meeting showed that the Indian economy has been clearly losing traction and needs a decisive monetary policy to promote growth. Besides, investors looking ahead to the Goods and Services Tax (GST) Council’s meeting. It will consider extending the tenure of the anti-profiteering authority by a year, setting up a single point refund system and a mechanism for businesses to issue e-invoices.

On the global front, Asian markets are trading mostly in red amid US-China trade tensions and rise in crude oil prices. The US markets had closed higher on Thursday as traders continued to react positively to the Federal Reserve's monetary policy announcement on June 19. Back home, infrastructure stocks were buzzing amid report that terming infrastructure as pivotal in propelling prosperity and growth, President Ram Nath Kovind said the government's endeavour is to build 35,000 km of highways, besides expressways, by 2022 and to lay a strong foundation for urban infrastructure that will encourage employment generation.

The BSE Sensex is currently trading at 39452.91, down by 148.72 points or 0.38% after trading in a range of 39415.06 and 39617.95. There were 8 stocks advancing against 22 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.48%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.22%, Capital Goods up by 0.17%, Power up by 0.10%, Basic Materials up by 0.09%, PSU up by 0.07%, while Realty down by 1.39%, Auto down by 1.13%, Healthcare down by 0.85%, Telecom down by 0.72%, Consumer Disc down by 0.65% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 0.85%, SBI up by 0.54%, Larsen & Toubro up by 0.38%, Power Grid up by 0.35% and Vedanta up by 0.32%. On the flip side, Yes Bank down by 3.54%, Maruti Suzuki down by 2.38%, Tata Motors - DVR down by 2.08%, Tata Motors down by 1.82% and Bharti Airtel down by 0.96% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that both bank credit and deposits slowed for the fortnight ending June 7. Bank credit grew by 9.92 percent to Rs 96.52 lakh crore and deposits by 12.31 percent to Rs 125.40 lakh crore. Besides, Non-food credit increased 11.9 percent in April from 10.7 percent in April 2018.

In the year-ago fortnight, bank credit was at Rs 85.94 lakh crore, while deposits were at Rs 114.08 lakh crore. In the previous fortnight ending May 24, advances grew 12.70 percent to Rs 96.22 lakh crore and deposits increased 10.09 percent to Rs 124.98 lakh crore.

As per the data, loans to agriculture and allied activities rose 7.9 percent in April compared to 5.9 percent growth in the same month of 2018. Advances to the services sector expanded 16.8 percent compared to an increase of 20.7 percent in April 2018. Personal loans growth slowed to 15.7 percent from 19.1 percent during the reporting month. Credit to the industry rose 6.9 percent in April as against a meagre 1 percent growth in the year-ago period.

The CNX Nifty is currently trading at 11781.90, down by 49.85 points or 0.42% after trading in a range of 11776.55 and 11827.95. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.39%, Grasim Industries up by 1.07%, Coal India up by 0.83%, Tech Mahindra up by 0.80% and Wipro up by 0.54%. On the flip side, Yes Bank down by 4.15%, Indiabulls Housing Finance down by 4.01%, Maruti Suzuki down by 1.94%, Zee Entertainment down by 1.82% and Tata Motors down by 1.70% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 155.96 points or 0.73% to 21,306.90, Hang Seng decreased 73.68 points or 0.26% to 28,476.75, Jakarta Composite lost 34.30 points or 0.54% to 6,301.40, KOSPI fell 5.69 points or 0.27% to 2,125.60 and Straits Times trembled 4.96 points or 0.15% to 3,309.55. On the other hand, Taiwan Weighted strengthened 15.02 points or 0.14% to 10,800.03 and Shanghai Composite gained 18.24 points or 0.61% to 3,005.36.

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