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Key indices continue to trade lower in afternoon deals
Jun-21-2019

Indian equity benchmarks continued their weak trade in afternoon session, on the back of sustained selling activities by market-participants amid global growth concerns. The mood on the street remained cautious with Reserve Bank of India Governor Shaktikanta Das’ statement that the Indian economy has been clearly losing traction and needs a decisive monetary policy to promote growth. He also favoured shifting the stance of monetary policy from neutral to accommodative to send a clear signal, indicating that more measures could be taken in the near future to boost growth. Some anxiety also remained among the local traders 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. On the sectoral front, stocks related to steel sector remained in focus with rating agency Crisil’s statement that even though recovery rates from stressed assets in the steel sector have been higher till now, the same is expected to dip in the next round of resolutions. 

On the global front, Asian markets were trading mostly in red, as anxiety over Sino-US trade negotiations clouded investor sentiment in the region. Back home, the BSE Sensex is currently trading at 39382.10, down by 219.53 points or 0.55% after trading in a range of 39327.10 and 39617.95. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.26%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.39%, PSU up by 0.23%, Metal up by 0.06% and Consumer Durables was up by 0.03%, while Healthcare down by 0.88%, Auto down by 0.79%, Telecom down by 0.78%, Energy down by 0.64% and Capital Goods was down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.21%, SBI up by 1.10%, Hero MotoCorp up by 0.63%, Vedanta up by 0.44% and Mahindra & Mahindra was up by 0.37%. On the flip side, Yes Bank down by 4.67%, Maruti Suzuki down by 2.78%, Sun Pharma down by 1.61%, HDFC down by 1.21% and Kotak Mahindra Bank was down by 1.13% were the top losers.

Meanwhile, observing initiatives taken towards labour law reforms till date are miniscule, State Bank of India (SBI) in its research report 'Ecowrap' has stated that the Centre and state governments need to pursue labour law reforms as these are necessary for improving employment and employability, streamline labour issues and developing adequate means to absorb the labour in the economy.

The report said that the investors look out for stability and sustainability and land and labour resources are critical for them to firm up their investment plans. It noted that presently, there are close to 44 central labour laws and over 100 state labour laws. It also pointed out that the labour ministry has taken steps to codify the existing central labour laws into four codes -- Labour Code on Wages, Labour Code on Industrial Relations, Labour Code on Social Security and Welfare, and Labour Code on Occupational Safety, Health and Working Conditions.

SBI further stated that of the four codes, the one on wages has been introduced in the Lok Sabha and is under examination. The other three codes are at the pre-legislative consultation stage and should be completed urgently. Separately, it said a national policy for domestic workers needs to be brought in at the earliest to recognize their rights and promote better working conditions. It added that steps may be taken from both state and central legislation to take the labour reforms forward.

The CNX Nifty is currently trading at 11782.30, down by 49.45 points or 0.42% after trading in a range of 11757.95 and 11827.95. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.22%, Indiabulls Housing finance up by 1.63%, Hindalco up by 1.57%, Indusind Bank up by 1.39% and Ultratech Cement was up by 1.18%. On the flip side, Yes Bank down by 4.54%, Maruti Suzuki down by 2.33%, Bharti Infratel down by 2.15%, Indian Oil Corporation down by 1.59% and Sun Pharma was down by 1.41% were the top losers.

Asian markets were trading mostly in red: KOSPI fell 5.67 points or 0.27% to 2,125.62, Straits Times trembled 1.89 points or 0.06% to 3,312.62, Hang Seng decreased 104.09 points or 0.36% to 28,446.34, Nikkei 225 slipped 204.22 points or 0.95% to 21,258.64 and Jakarta Composite was down by 45.24 points or 0.71% to 6,290.46.

On the flip side, Taiwan Weighted strengthened 18.76 points or 0.17% to 10,803.77 and Shanghai Composite was up by 6.90 points or 0.23% to 2,994.02.
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