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Benchmarks continue weak trade in early noon deals
Jun-21-2019

Indian equity benchmarks continued their lackluster trade in afternoon session, amid negative signals from other Asian markets. Stocks from Auto, Energy and Telecom counters were trading lower, while Basic Materials and Power counters were supporting the markets. Besides, broader indices were trading mixed with the BSE Mid cap index lost 0.36%, while Small cap index was up by 0.06%. The mood on the street remained cautious as 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. Further, sentiments were too downbeat with RBI governor Shaktikanta Das’ statement that there are clear evidences of economic activity losing traction, as the GDP growth in Q4FY19 slowed down to 5.8%. However, traders took note of a report that the United States is not considering capping the number of annual H-1B work visas for countries that force foreign companies to store local data locally. Meanwhile, the Reserve Bank of India (RBI) said foreign exchange trading platform (FX-Retail) for retail participants is ready for rollout by the Clearing Corporation of India (CCIL) on August 05. As a further facility for retail clients, the RBI said no transaction charges will be levied by the CCIL on transactions of customers if the transactions do not exceed $50,000 per day.

On the global front, Asian markets were trading mostly in red, as weak manufacturing data from Japan dampened investor sentiment. Back on street, in scrip specific developments, shares of Aurobindo Pharma edged lower as the company has received a warning letter from the United States Food and Drug Administration (USFDA) relating to its unit XI, active pharmaceutical ingredient (API) manufacturing facility situated at Srikakulam, in the state of Andhra Pradesh. However, shares of Cords Cable Industries advanced on bagging orders worth Rs 16.63 crore from Uttar Pradesh.

The BSE Sensex is currently trading at 39356.62, down by 245.01 points or 0.62% after trading in a range of 39327.10 and 39617.95. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in mixed; the BSE Mid cap index lost 0.36%, while Small cap index was up by 0.06%.

The few gaining sectoral indices on the BSE were Basic Materials up by 0.27% and Power was up by 0.02%, while Auto down by 0.83%, Energy down by 0.82%, Telecom down by 0.78%, Healthcare down by 0.67%, Oil & Gas was down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 0.46%, Hero MotoCorp up by 0.46%, Indusind Bank up by 0.45%, NTPC up by 0.33% and Vedanta was up by 0.26%. On the flip side, Yes Bank down by 3.10%, Tata Motors - DVR down by 1.88%, Maruti Suzuki down by 1.84%, Tata Motors down by 1.29% and ITC was down by 1.24% were the top losers.

Meanwhile, calling employment generation both in rural and urban area as one of his priorities, Union Minister Nitin Gadkari has said that the micro, small and medium enterprise (MSME) sector offers huge potential and the government is ready to come out with special policies to promote import-substitute products. He said MSMEs have huge employment potential and the government is especially looking to promote products that could be import-substitute.

Urging investors from Singapore to tap huge opportunities that India offers, Gadkari said the government is building 22 green expressways which will have investments of Rs 10 lakh crore. He also said Dwarka Expressway, which is to be built at Rs 10,000 crore, will be expedited. He also informed that 250 road side facilities and 250 petrol pumps are planned besides logistics parks and smart cities, among others, which offer huge investment opportunities.

Talking about the National Highways Authority of India (NHAI), the Minister said the government is looking at financial models for a joint venture with the NHAI to address any funding issues. He also said massive work has been done on Ganga and its cleaning will be done by March 2020.

The CNX Nifty is currently trading at 11766.20, down by 65.55 points or 0.55% after trading in a range of 11757.95 and 11827.95. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.03%, Indiabulls Housing up by 2.13%, Tech Mahindra up by 1.30%, Hindalco up by 1.08% and Indusind Bank was up by 0.54%. On the flip side, Yes Bank down by 3.06%, Bharti Infratel down by 1.61%, Indian Oil Corporation down by 1.59%, Maruti Suzuki down by 1.56% and JSW Steel was down by 1.41% were the top losers.

Asian markets were trading mostly in red; KOSPI fell 7.39 points or 0.35% to 2,123.90, Straits Times trembled 4.70 points or 0.14% to 3,309.81, Hang Seng decreased 179.13 points or 0.63% to 28,371.30, Nikkei 225 slipped 204.85 points or 0.95% to 21,258.01 and Jakarta Composite was down by 45.24 points or 0.71% to 6,290.46. On the other hand, Taiwan Weighted strengthened 3.26 points or 0.03% to 10,788.27 and Shanghai Composite was up by 8.61 points or 0.29% to 2,995.73.
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