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Local equities continue choppy trade
Jun-24-2019

Local equity benchmarks continued their choppy trade in morning deals with frontline gauges trading below their neutral lines, owing to selling pressure in frontline blue-chip counters. A level of pressure was seen on frontline stocks, especially Bajaj Auto and Hero MotoCorp. Some cautiousness came with Finance Ministry’s statement that Government’s total liabilities reached Rs 84.68 lakh crore at the end of March 2019, up 1.5 per cent over the preceding quarter. The total liabilities stood at Rs 83.40 lakh crore at end-December 2018. However, losses remained capped with Niti Aayog’s statement that expert panel for macroeconomics and employment came out with suggestions to achieve $5 trillion economy target during an interaction with Prime Minister Narendra Modi. Improvement of governance in PSU banks, enhancing growth rate of exports & employment generation were some of the key areas identified. Traders took note of a report that India has called for a ‘clear roadmap’ from China to meet its long-standing demand to open up Chinese pharmaceuticals market for Indian exports as the drug regulators of both the nations held their first ever meeting on June 21 at Shanghai, brain storming on removing the road blocks. Besides, the GST Council has extended the deadline for GST return filing by one month to Aug 30 as against the earlier date of June 30.

On the global front, Asian markets were trading mixed with cautious bullish optimism emerging for a thaw in US-China trade talks. Back home, a FICCI survey stated that sentiment in the manufacturing sector remains subdued as the proportion of respondents reporting higher output growth during April-June has fallen to 41 per cent from 54 per cent in the previous quarter.

The BSE Sensex is currently trading at 39149.06, down by 45.43 points or 0.12% after trading in a range of 39070.27 and 39300.02. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.23%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Telecom up by 0.28%, Basic Materials up by 0.24%, Industrials up by 0.23%, Power up by 0.20% and FMCG was up by 0.18%, while Oil & Gas down by 1.52%, Energy down by 1.20%, Auto down by 0.83%, Realty down by 0.33% and Consumer Disc was down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.83%, IndusInd Bank up by 0.92%, Bharti Airtel up by 0.83%, Mahindra & Mahindra up by 0.82% and HDFC was up by 0.56%. On the flip side, Bajaj Auto down by 2.02%, Hero MotoCorp down by 1.98%, ONGC down by 1.66%, Reliance Industries down by 1.20% and Vedanta was down by 1.02% were the top losers.

Meanwhile, Securities and Exchange Board of India (SEBI) in its latest data has showed that the total value of participatory notes (P-note) investments in the Indian markets -- equity, debt, and derivatives -- rose by 1.72 percent to Rs 82,619 crore till May-end, from Rs 81,220 crore at April-end. Of the total investments, P-note holdings in equities stood at Rs 61,574 crore, followed by debt (Rs 19,681 crore) and derivatives (Rs 193 crore). Investment through P-notes has been on the rise for the previous three months.

A cumulative investment of Rs 73,428 crore was made till the end of February, Rs 78,110 crore till March and Rs 81,220 crore till April end. P-notes are issued by registered foreign portfolio investors to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

Besides, P-note investments were on a decline since June 2017 due to several measures taken by the market watchdog to stop the misuse of the controversy-ridden instrument. In July 2017, SEBI had notified stricter norms stipulating a fee of $1,000 on each instrument to check any misuse for channelising black money. It had also prohibited FPIs from issuing such notes where the underlying asset is a derivative, except those which are used for hedging purposes.

The CNX Nifty is currently trading at 11707.05, down by 17.05 points or 0.15% after trading in a range of 11687.30 and 11754.00. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.20%, Yes Bank up by 2.55%, Adani Ports up by 1.04%, Bharti Airtel up by 1.03% and Mahindra & Mahindra was up by 0.82%. On the flip side, Bajaj Auto down by 2.14%, Hero MotoCorp down by 1.99%, Eicher Motors down by 1.76%, Indian Oil down by 1.69% and BPCL was down by 1.63% were the top losers.

Asian markets were trading mixed; Taiwan Weighted dropped 32.75 points or 0.3% to 10,771.02, Straits Times trembled 11.09 points or 0.33% to 3,310.31, Jakarta Composite lost 5.41 points or 0.09% to 6,310.03 and Shanghai Composite declined 2.68 points or 0.09% to 2,999.30.

On the other hand; KOSPI rose 1.04 points or 0.05% to 2,126.66, Nikkei 225 surged 37.10 points or 0.17% to 21,295.74 and Hang Seng was up by 37.46 points or 0.13% to 28,511.17.
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