Markets trade marginally in red in noon session

Indian equity benchmarks continue to trade marginally in red in early noon session on account of profit booking by investors in some specific sectors such as Consumer Durables, FMCG, Realty, Capital Goods and IT. Cautiousness remained in the markets as participants were keenly watching out for the European Central Bank (ECB) and Organization of the Petroleum Exporting Countries (OPEC) meet scheduled today. However, losses remained capped with Economic Affairs Secretary Shaktikanta Das’ statement that the Indian economy is well poised to touch 8% growth rate in 2016-17 on the back of a good monsoon. He said the overall macroeconomic numbers and fiscal parameters of the country are very robust.  Some support also came in with the NITI Aayog Vice Chairman Arvind Panagariya’s statement that India is making ‘good’ progress to return to an 8 per cent average GDP growth rate.

In scrip specific development, share of Tata Motors was trading higher after the company reported a 1% growth in sales at 40,071 units in May compared with 39,496 in the same month last year.

On the global front, Asian markets were trading mostly in green, despite surveys showing global manufacturing activity and demand remaining weak, while a jump in the yen sent Japan's Nikkei reeling more than 2 percent. Back home, the market breadth was bearish as 1235 stocks were declining, while 1034 were advancing.

The BSE Sensex is currently trading at 26676.58, down by 37.35 points or 0.14% after trading in a range of 26645.95 and 26745.20. There were 15 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.25%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were Metal up by 1.66%, PSU up by 0.63%, Auto up by 0.45%, Oil & Gas up by 0.18% and TECK up by 0.08%, while Consumer Durables down by 0.98%, FMCG down by 0.83%, Realty down by 0.50%, Capital Goods down by 0.19% and IT down by 0.03% were the losing indices on BSE. 

The top gainers on the Sensex were Coal India up by 3.67%, Hero MotoCorp up by 1.55%, Tata Motors up by 1.29%, Tata Steel up by 1.13% and GAIL India up by 0.94%. On the flip side, ITC down by 1.91%, Wipro down by 1.83%, Hindustan Unilever down by 1.39%, Sun Pharma down by 1.28% and Lupin down by 1.13% were the top losers.

Meanwhile, NITI Aayog Vice-Chairman Arvind Panagariya, reacting to the robust economic growth in the fourth quarter, said that the country was making good progress to return to the average GDP growth rate of eight per cent recorded between 2003 and 2011. He further said that for the 2015-16 year, the Indian economy grew by 7.6 per cent and in the last quarter of the fiscal, the growth rate was 7.9 per cent and added that there is a good bit of turnaround in the economy which was not in a 'great shape' when the Narendra  Modi government came into power in 2014.

Panagariya, at a discussion organised by the Asia Society Policy Institute on the two years of the Indian government, which was attended by analysts, executives and diplomats including India's Consul General in New York Riva Ganguly Das, Deputy Permanent Representative to the UN Tanmaya  Lal, former Indian envoy to the UN Hardeep Singh Puri and former us Ambassador to  India Frank Wisner, said that some of the outcome-related symptoms, related largely to the stabilisation of the economy are beginning to look good, he also noted that inflation has been contained around five per cent and forex reserves are also in good shape.

He added that there are certain “continuing weaknesses” which are largely inherited and cited the example of the steel, construction, textile and banking sectors, saying all of these have “serious legacy issues but it should not distract us from the fact that several of the sectors” such as auto, pharma, software, engineering goods, are “doing well which is what accounts for the aggregate growth of 7.6 per cent.”

Pangariya noting that India has been 'slower' than other countries in entering free trade agreements, said that India will need to capture some of the world markets if it has to sustain an 8 to 10% growth rate over the next 20-25 years. He added that apart from liberalisation, India would also need to focus on “internal reforms” like trade facilitation, speed at which goods can move in and out of the country and the various clearances required.

The CNX Nifty is currently trading at 8166.85, down by 13.10 points or 0.16% after trading in a range of 8154.75 and 8185.85. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.68%, Hindalco up by 1.84%, Hero MotoCorp up by 1.63%, Idea Cellular up by 1.36% and BPCL up by 1.25%. On the flip side, Wipro down by 2.25%, ITC down by 2.02%, HCL Tech. down by 1.84%, Hindustan Unilever down by 1.43% and Lupin down by 1.28% were the top losers.

Asian markets were trading mostly higher; KOSPI Index increased 2.39 points or 0.12% to 1,985.11, Shanghai Composite increased 3.54 points or 0.12% to 2,917.04, FTSE Bursa Malaysia KLCI increased 5.06 points or 0.31% to 1,631.56, Jakarta Composite increased 5.75 points or 0.12% to 4,845.41 and Hang Seng increased 22.99 points or 0.11% to 20,783.97, while Nikkei 225 decreased 383.66 points or 2.26% to 16,572.07 and Taiwan Weighted decreased 41.14 points or 0.48% to 8,556.02.