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Key gauges continue to trade sluggish
Aug-20-2019

Indian equity benchmarks continued to trade in red in afternoon deals with frontline gauges trading with a cut of around half a percent amid slips in crude oil prices. Broader indices were also trading in red. Some cautiousness remained on the street with report that former Reserve Bank of India’s (RBI) Governor Raghuram Rajan called slowdown in the economy very worrisome and said the government needs to fix the immediate problems in power and non-bank financial sectors and come out with a new set of reforms to energise private sector to invest. Traders paid no heed towards finance minister Nirmala Sitharaman’s statement that the government would trim the corporate tax rate gradually to 25% for all companies, including the large ones with an annual turnover of over Rs 400 crore.

On the global front, Asian stocks were trading mostly in green with the signs of progress on trade negotiations and speculation of government stimulus to shore up economic growth. Back home, Auto stocks remained in top gear on hopes that a monsoon revival, drop in dealer stocks and an expected stimulus package from the government would boost demand. In scrip specific developments, Dr. Reddy’s Lab surged on launching Vigabatrin Powder for Oral Solution and Maruti Suzuki India edged higher on launching 5-year, 1-lakh km warranty scheme for various models.

The BSE Sensex is currently trading at 37301.72, down by 100.77 points or 0.27% after trading in a range of 37241.83 and 37511.55. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.86%, while Small cap index was down by 0.65%.

The few gaining sectoral indices on the BSE were IT up by 1.26%, TECK up by 1.05% and Auto was up by 0.56%, while Metal down by 1.63%, PSU down by 1.34%, Basic Materials down by 1.31%, Realty down by 1.22% and Energy was down by 1.14% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.99%, Maruti Suzuki up by 1.87%, Hero MotoCorp up by 1.14%, TCS up by 0.98% and Bajaj Auto up by 0.95%. On the flip side, Yes Bank down by 6.98%, Indusind Bank down by 2.75%, Bajaj Finance down by 1.83%, ICICI Bank down by 1.77% and ITC down by 1.67% were the top losers.

Meanwhile, with an effort to make mergers and acquisitions (M&A) filings approval faster, Competition Commission of India (CCI) has introduced an automatic system of approval for combinations under Green Channel. Under this process, the combination is deemed to have been approved upon filing the notice in the prescribed format. This system would significantly reduce time and cost of transactions.

The Green Channel is aimed to sustain and promote a speedy, transparent and accountable review of combination cases, strike a balance between facilitation and enforcement functions, create a culture of compliance and support economic growth.

Besides, the regulator also revised its pre-filing consultation guidance note to extend its scope to include consultation to assist the parties to determine whether their combination is eligible for Green Channel.

The CNX Nifty is currently trading at 10997.05, down by 56.85 points or 0.51% after trading in a range of 10994.40 and 11076.30. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.00%, Maruti Suzuki up by 1.73%, Hero MotoCorp up by 1.24%, Dr. Reddys Lab up by 1.09% and Wipro up by 1.09%. On the flip side, Yes Bank down by 6.98%, Indiabulls Housing down by 5.26%, Britannia Industries down by 3.04%, Indusind Bank down by 3.02% and Ultratech Cement down by 2.89% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 114.06 points or 0.55% to 20,677.22, Straits Times gained 10.91 points or 0.35% to3, 139.36, Taiwan Weighted advanced33.75 points or 0.32% to10, 522.50, Kospi gained 20.35 points or 1.05% to 1,960.25, Jakarta Composite soared 1.33 points or 0.02% to 6,298.05. On the flip side, Hang Seng slipped 39.32 points or 0.15% to 26,252.52 and Shanghai Composite was down by 3.50 points or 0.12% to 2,879.60.
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