Weak trade persist in late afternoon session

Indian equity benchmarks continued their lackluster trade in late afternoon session on account of profit booking in frontline blue chip counters amid weak opening in the European counterparts. However, in the broader market, BSE Midcap and BSE Smallcap outperformed the frontline indices with gains 0.26% each. Sentiments remained downbeat with a report that the all India Consumer Sentiments Index, measured by the BSE and CMIE, has hit a one-year low at 92.25 compared to 99.65 a year ago. This comes even as the wholesale price index based inflation jumped up to a 39-month high of 6.55 per cent. However, losses remained limited with the report that the Union Cabinet approved four legislations to implement the Goods and Services Tax (GST), ahead of their introduction in Parliament this week to enable roll out of the tax reform from July 1. On sectoral front, stocks of some textile companies were trading in red with ICRA’s report that the global apparel trade remains under pressure, having contracted for the second consecutive year in calendar year 2016, owing to subdued demand conditions in the key importing countries. However, shares related to tyre companies remained higher after report suggests that the Commerce Ministry to meet the domestic players, on March 28, to discuss anti dumping duty on imports of a certain kind of radial tyres.

On the global front, European markets were trading in red as investors digested the potential impact that trade barriers could have on global growth. Asian markets were trading mixed ahead of a raft of speeches by Federal Reserve officials due this week, including Fed Chair Janet Yellen on Thursday. Back home, in scrip specific development, Marathon Nextgen Realty edged higher after the company received its board’s approval for the proposed development (IT Park) Phase-III at Marathon Futurex Premises, owned by Marathon Realty, Lower Parel, Mumbai.

The BSE Sensex is currently trading at 29514.82, down by 134.17 points or 0.45% after trading in a range of 29482.40 and 29699.48. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.26%, while Small cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.88%, Healthcare up by 0.47%, Realty up by 0.31%, Power up by 0.31% and PSU up by 0.28%, while IT down by 1.39%, TECK down by 1.30%, Telecom down by 1.26%, Metal down by 0.57% and Bankex down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.91%, HDFC up by 0.84%, Lupin up by 0.80%, HDFC Bank up by 0.62% and Bajaj Auto up by 0.56%. On the flip side, ICICI Bank down by 2.05%, Infosys down by 2.01%, TCS down by 1.78%, Axis Bank down by 1.74% and Tata Steel down by 1.45% were the top losers.

Meanwhile, pointing that the current price indices fail to capture the ground reality, a Parliamentary panel has asked the government to come up with a separate price index for the services sector, which could accurately factor in and reflect the rising costs of different services in the economy, enabling the government to tailor their policy responses accordingly. Further, the panel added that sectoral regulators need better data on prices, production and quality of services to act in the consumer interest.

The Parliamentary panel said that although services account for around 60 per cent of the country's economy, they are neither captured fully by the Wholesale Price Index (WPI) based inflation nor the Consumer Price Index (CPI), which reflects the rate of price rise at retail level and noted that in view of service sector contribution to the Indian economy, there is need of accurate data on services inflation to understand relative price movements.

The panel further noted that entertainment, transportation and the like are mostly privatised, and costs may be rising 'disproportionately higher' than what is being captured in the CPI or retail inflation. The panel said that sectoral regulators need better data on prices, production and quality of services to act in the consumer interest. It pointed that the Reserve Bank of India has shifted its focus from wholesale prices to retail inflation while determining its monetary policy because WPI did not include services in its basket. However, the rising cost of education, healthcare, entertainment and transportation do not get fully reflected even in CPI.

The CNX Nifty is currently trading at 9126.90, down by 33.15 points or 0.36% after trading in a range of 9116.30 and 9167.60. There were 24 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Tata Power up by 1.62%, Grasim Industries up by 1.59%, Eicher Motors up by 1.47%, Aurobindo Pharma up by 1.39% and NTPC up by 1.09%. On the flip side, Idea Cellular down by 8.79%, Infosys down by 2.02%, ICICI Bank down by 1.98%, Axis Bank down by 1.97% and TCS down by 1.86% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 2.33 points or 0.13% to 1,747.53, Taiwan Weighted increased 4.28 points or 0.04% to 9,912.97, Shanghai Composite increased 13.36 points or 0.41% to 3,250.81 and Hang Seng increased 192.06 points or 0.79% to 24,501.99. On the flip side, Nikkei 225 decreased 68.55 points or 0.35% to 19,521.59, Jakarta Composite decreased 21.15 points or 0.38% to 5,519.29 and KOSPI Index decreased 7.57 points or 0.35% to 2,157.01.

All European Markets were trading in red; Germany’s DAX decreased 28.24 points or 0.23% to 12,067.00, UK’s FTSE 100 decreased 20.71 points or 0.28% to 7,404.25 and France’s CAC decreased 16.38 points or 0.33% to 5,012.86.