Markets continue lackluster trade in late afternoon session

Indian equity benchmarks continued their lackluster trade in late afternoon session with losses of more than half a percent each, as heavy selling pressure witnessed in Metal, Energy, and Oil & Gas stocks. Weak opening in the European markets also dampened the sentiments. However, losses remained limited with the report that Finance Minister Arun Jaitley today tabled supplementary goods and services tax legislations in Parliament. C-GST and GST Compensation Bills were introduced in the Lok Sabha, paving the way for the government to launch the landmark tax reform. On sectoral front, some of aviation companies stocks were trading in green with the Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA)’s report that India has become the third largest aviation market in terms of domestic passenger traffic. India’s domestic air passenger traffic stood at 100 million in 2016 and was behind only the US (719 million) and China (436 million). Further, falling crude oil prices, which reduces the cost of fuel for airlines also supported the aviation sector stocks.

On the global front, European markets were trading in red as investors adopted a cautious tone on the back of U.S. President Donald Trump's surprise failure to deliver swift health-care reform. Asian markets were also trading in red. Back home, in scrip specific development, Dr. Reddy's Laboratories traded higher after the company entered into an exclusive distribution agreement with Integra LifeSciences Holdings Corporation. Under the agreement, Dr. Reddy's will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India.

The BSE Sensex is currently trading at 29198.04, down by 223.36 points or 0.76% after trading in a range of 29163.54 and 29420.70. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.34%, while Small cap index was down by 0.13%.

The sole gaining sectoral index on the BSE was Consumer Durables up by 0.43%, while Metal down by 2.69%, Energy down by 1.70%, Oil & Gas down by 1.03%, Telecom down by 0.95% and Basic Materials down by 0.95% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.21%, Dr. Reddy’s Lab up by 0.71%, Power Grid up by 0.46%, Hindustan Unilever up by 0.16% and Infosys up by 0.13%. On the flip side, Tata Steel down by 3.39%, Reliance Industries down by 2.74%, Coal India down by 2.26%, Sun Pharma down by 1.68% and Wipro down by 1.66% were the top losers.

Meanwhile, in order to boost the textile sector, the government is working on the much-awaited new National Textiles Policy, with an aim to achieve $300 billion textiles exports by 2024-25 and envisages creation of additional 35 million jobs. The policy will focus on a three-pronged approach to boost the growth of Indian handicraft sector, which is facing tough competition from international players.

The policy’s three pronged approach involves incentivising expansion of production base for quality manufacturing of handicraft products used for interior decoration and lifestyle purposes. It will focus on promoting premium handicraft products for the niche market along with preservation and protection of heritage and endangered crafts.

The textile ministry is also focusing on promoting premium handicraft products for the niche market along with preservation and protection of heritage and endangered crafts. To review and revamp the textile policy 2000, the ministry had set up an expert committee and it is currently engaged in consultation with stakeholders including states and working out the financial implications of the policy with its finance counterpart.

The CNX Nifty is currently trading at 9040.60, down by 67.40 points or 0.74% after trading in a range of 9024.65 and 9094.85. There were 12 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 1.98%, Indusind Bank up by 1.20%, SBI up by 1.10%, BHEL up by 0.72% and Dr. Reddy’s Lab up by 0.51%. On the flip side, Idea Cellular down by 3.41%, Tata Steel down by 3.27%, Hindalco down by 2.87%, Reliance Industries down by 2.82% and Aurobindo Pharma down by 2.49% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 276.94 points or 1.44% to 18,985.59, Hang Seng decreased 164.57 points or 0.68% to 24,193.70, Jakarta Composite decreased 31.76 points or 0.57% to 5,535.37, Taiwan Weighted decreased 26.21 points or 0.26% to 9,876.77, KOSPI Index decreased 13.29 points or 0.61% to 2,155.66 and Shanghai Composite decreased 2.49 points or 0.08% to 3,266.96. On the flip side, FTSE Bursa Malaysia KLCI increased 0.77 points or 0.04% to 1,746.52.

All European markets were trading in red; Germany’s DAX decreased 109.81 points or 0.91% to 11,954.46, UK’s FTSE 100 decreased 75.4 points or 1.03% to 7,261.42 and France’s CAC decreased 44.9 points or 0.89% to 4,976.00.