Markets continue weak trade below neutral line

Indian equity indices trimmed some of their losses but continued to trade below neutral line as investors took a pause ahead of key economic growth and fiscal deficit data due later in the day amid firm global cues. Markets pared its losses led by Realty, Telecom and Basic Materials stocks. However, the sell-off continued in Oil & Gas, Energy and PSU stocks. Investors took note of OECD report that cut India's growth forecast to 7% for 2016-17 in view of demonetisation from its earlier forecast of 7.4%, but said the pace will accelerate to 7.3% in the next fiscal 7.7% in 2018-19. It also said that India has been a star performer in gloomy times. Furthermore, sentiments remained subdued with India Ratings and Research’s (Ind-Ra’s) estimates that aggregate fiscal deficit of Indian states will increase marginally to 3.3% of gross domestic product (GDP) in FY18 from its forecast of 3.2% for FY17. It expects states’ debt/GDP ratio may increase marginally to 24.3% in FY’18 from 24% forecasted for FY17.

On global front, European markets were trading in green as investors geared up for fiscal stimulus and infrastructure spending announcements from U.S. President Donald Trump during his speech before Congress later today. Asian markets were trading in green, even as gains remain capped ahead of Trump's speech and the annual meetings of China's top legislature and top political advisory body. Back home, in scrip specific development, Titan Company gained after the company entered into premium sarees and women's ethnic wear category under the brand name ‘Taneira’.  The company has opened its first Taneira store in Bengaluru.

The BSE Sensex is currently trading at 28795.43, down by 17.45 points or 0.06% after trading in a range of 28729.52 and 28876.54. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.05%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Realty up by 1.21%, Telecom up by 0.74%, Basic Materials up by 0.36%, Metal up by 0.34% and Capital Goods up by 0.21%, while Oil & Gas down by 1.33%, Energy down by 0.85%, PSU down by 0.44%, Auto down by 0.16% and IT down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.63%, Asian Paints up by 1.57%, Mahindra & Mahindra up by 1.23%, SBI up by 0.73% and Lupin up by 0.63%. On the flip side, Coal India down by 2.52%, Bajaj Auto down by 1.28%, TCS down by 1.26%, ICICI Bank down by 0.86% and NTPC down by 0.79% were the top losers.

Meanwhile, in order to push implementation of various schemes in the urban sector, the Urban Development Ministry has recommended a six-fold increase in reform incentive fund to over Rs 3,000 crore annually over the next three years.

The government will provide these incentives by ranking the cities based on performance under five reforms which are - getting credit ratings, initiatives for value capturing finances, adopting ‘trust and verify’ method, land title reforms and bringing in professionalism in municipalities. These set of reforms were recommended by a group of secretaries for bringing in transformation in the urban sector.

The Ministry has proposed to increase ‘reform incentive fund’ from Rs 500 crore during 2017-18 to over Rs 3,000 crore per year over the next three years of implementation period. Earlier, in 2016-17, the government had distributed about Rs 400 crore for those who pursued reforms indicated in AMRUT guidelines.

Moreover, with an aim to cut down on delays for granting permission by adopting ‘grant approvals first and verify later’ approach, the Urban Development Ministry has come out with implementation framework in respect of these reforms under which it targets to provide online approval facility for building construction in all 4,041 cities and towns by 2019-20.

The CNX Nifty is currently trading at 8883.60, down by 13.10 points or 0.15% after trading in a range of 8867.60 and 8914.75. There were 24 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.80%, Asian Paints up by 1.52%, Bharti Airtel up by 1.50%, Mahindra & Mahindra up by 1.41% and Yes Bank up by 1.09%. On the flip side, BPCL down by 5.20%, Coal India down by 2.62%, Grasim Industries down by 2.18%, Idea Cellular down by 2.01% and Bosch down by 1.76% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.44 points or 0.09% to 1,695.28, KOSPI Index increased 6.12 points or 0.29% to 2,091.64, Jakarta Composite increased 11.16 points or 0.21% to 5,394.04, Nikkei 225 increased 11.52 points or 0.06% to 19,118.99 and Shanghai Composite increased 13.07 points or 0.4% to 3,241.73. On the flip side, Hang Seng decreased 184.32 points or 0.77% to 23,740.73.

All European markets were trading in green; UK’s FTSE 100 increased 4 points or 0.06% to 7,257.00, Germany’s DAX increased 5.31 points or 0.04% to 11,827.98 and France’s CAC increased 6.73 points or 0.14% to 4,851.91.