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Volatility continues on Dalal Street
Aug-20-2019

Volatility continued on Dalal Street in late afternoon session, despite firm cues from European markets. Domestic sentiments remained pessimistic, as 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.

On the global front, European markets were trading in green, as German employment increased in the second quarter largely due to the growth in outdoor work in spring. The data from Destatis showed that employment increased by seasonally adjusted 50,000 or 0.1 percent sequentially in the second quarter. Asian markets were also trading in green.

Back home, realty stocks were in watch, after Housing and Urban Affairs Secretary Durga Shankar Mishra said that the government may consider amendments in the real estate law RERA, if required, to make it more effective.

The BSE Sensex is currently trading at 37291.75, down by 110.74 points or 0.30% after trading in a range of 37220.96 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 was down by 0.79%, while Small cap index was down by 0.65%.

The few gaining sectoral indices on the BSE were IT up by 1.49%, TECK up by 1.22%, Auto up by 0.75% and Consumer Disc up by 0.11%, while Metal down by 1.95%, Basic Materials down by 1.50%, PSU down by 1.42%, Energy down by 1.04%, Bankex down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.77%, HCL Tech. up by 2.09%, Infosys up by 1.91%, Mahindra & Mahindra up by 1.52% and Tata Motors up by 1.49%. On the flip side, Yes Bank down by 7.17%, Indusind Bank down by 2.34%, ITC down by 2.07%, Axis Bank down by 1.99% and SBI down by 1.67% were the top losers.

Meanwhile, terming slowdown in the economy as ‘very worrisome’, Former Reserve bank of India (RBI) Governor Raghuram Rajan has said that the government needs to fix the immediate problems in power & non-bank financial sectors.

Rajan also expressed a need for fresh set of reforms to boost the economy and growth rate. Besides, he called for a fresh look at the way GDP in India is calculated, adding that there are a variety of growth projections from the private sector analysts, many of which are perhaps significantly below government projections.

Former RBI Governor further noted that businesses all around are worrying and complaining out loud that they need some kind of stimulus. Meanwhile, India's economic growth slowed to 6.8 per cent in 2018-19 - the slowest pace since 2014-15.

The CNX Nifty is currently trading at 11000.65, down by 53.25 points or 0.48% after trading in a range of 10985.30 and 11076.30. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.63%, HCL Tech. up by 1.96%, Infosys up by 1.85%, Mahindra & Mahindra up by 1.57% and TCS up by 1.46%. On the flip side, Yes Bank down by 7.18%, Indiabulls Housing Finance down by 4.83%, Britannia down by 3.13%, Indusind Bank down by 2.86% and Ultratech Cement down by 2.85% 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.

European markets were trading mostly in green; FTSE gained 16.57 points or 0.23% to 7,206.22, CAC rose 2.96 points or 0.06% to 5,374.52, while DAX was down by 9.61 points or 0.08% to 11,705.76.
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