Markets pare some losses; continue to trade in red

After hovering near the lowest point of the day, Indian equity benchmarks pared some of their losses but continued trade in red. The small recovery which took place in late afternoon session was on the back of gains in FMCG, Realty and Basic Materials sector stocks amid positive opening in the European counterparts. Some support also came with the report that the Cabinet cleared four supporting GST legislations, paving the way for their introduction in Parliament. On sectoral front, stocks of some oil & gas companies were trading lower with the Parliamentary Standing Committee's statement that the Goods and Services Tax will lead to an increase in the operational cost of petroleum products. However, some of the realty sector stocks advanced with the private report that India is expected to witness nearly $4.2 billion new capital in the realty sector in 2017. The report further noted that India's attractiveness as a global investment destination has strengthened on account of the country's political will to attract and protect investment growths. India's inclusion in the top investment destination is a testament of this confidence.

On the global front, European markets were trading in green as investors eyed intensifying talks between Greece and its euro zone creditors. Asian markets were trading in green after Chicago Federal Reserve president Charles Evans backed two more interest rate hikes this year, reinforcing recent comments from Fed Chair Janet Yellen that further rate increases would only be gradual. Back home, in scrip specific development, Jenburkt Pharmaceuticals was trading in green after the company achieved a milestone of crossing Rs 100 crore in sales (gross and unaudited) as on March 21, 2017.

The BSE Sensex is currently trading at 29437.61, down by 81.13 points or 0.27% after trading in a range of 29380.14 and 29585.05. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.70%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were FMCG up by 0.69%, Realty up by 0.66%, Basic Materials up by 0.21%, IT up by 0.15% and Capital Goods up by 0.01%, while Healthcare down by 1.62%, Telecom down by 1.08%, Auto down by 0.64%, Bankex down by 0.58% and Energy down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.83%, ONGC up by 0.89%, Larsen & Toubro up by 0.64%, Infosys up by 0.62% and NTPC up by 0.46%. On the flip side, Dr. Reddy’s Lab down by 3.97%, Axis Bank down by 2.79%, Sun Pharma down by 2.01%, GAIL India down by 1.60% and Adani Ports & SEZ down by 1.46% were the top losers.

Meanwhile, credit rating agency, ICRA in its latest report has said that the revival of irrigation sector backed by adequate funding support may add to the order inflow of construction companies. It added that the government investment in urban infrastructure segments has helped construction companies improve their order book positions and the revival of irrigation sector is beneficial for construction companies.

The rating agency said that the revival of irrigation sector backed by adequate funding support is a credit positive for construction companies. It noted that irrigation sector has witnessed good traction over the last one year and is likely to see improved execution with increased funding support from the State and the Central Governments budgetary allocation and the Long Term Irrigation Fund (LTIF) of NABARD.

The report pointed that states like Telangana have significantly increased allocation towards the irrigation sector to fast track the development of irrigation projects and added that while funding issues for these projects are largely addressed with fund availability from LTIF, other execution impediments could still delay completion of many projects.

The report stated that the construction sector’s gross value added (GVA) witnessed a YoY growth of 2.7 percent during Q3 FY2017 which is similar to the modest growth witnessed in the past quarters. Besides, it said that the growth in the construction GVA despite the disruption in the execution caused by the demonetisation reflects the resilience of the organised construction sector. In view of government’s fiscal targets and other increased expenditures, the agency noted that the revival of public private partnership is crucial for improving the pace of infrastructure development.

The CNX Nifty is currently trading at 9103.65, down by 23.20 points or 0.25% after trading in a range of 9087.20 and 9147.75. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.79%, Grasim Industries up by 1.65%, Bosch up by 1.24%, Ambuja Cement up by 1.17% and Bharti Infratel up by 1.17%. On the flip side, Idea Cellular down by 4.76%, Dr. Reddy’s Lab down by 3.74%, Yes Bank down by 2.75%, Axis Bank down by 2.49% and Sun Pharma down by 1.95% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 2.67 points or 0.15% to 1,752.08, Shanghai Composite increased 10.8 points or 0.33% to 3,261.61, KOSPI Index increased 21.37 points or 0.99% to 2,178.38, Taiwan Weighted increased 59.52 points or 0.6% to 9,972.49 and Hang Seng increased 91.13 points or 0.37% to 24,593.12. On the flip side, Nikkei 225 decreased 65.71 points or 0.34% to 19,455.88 and Jakarta Composite decreased 4.09 points or 0.07% to 5,529.91.

All European markets were trading in green; UK’s FTSE 100 increased 8.02 points or 0.11% to 7,437.83, France’s CAC increased 18.62 points or 0.37% to 5,030.78 and Germany’s DAX increased 24 points or 0.2% to 12,076.90.