Markets continue lackluster trade in late afternoon session

Indian equity benchmarks continued their lackluster trade in late afternoon session on account of geopolitical concerns. Marginally weak rupee against dollar and selling pressure in IT, TECK and Consumer Durables stocks also weighed on the sentiments. However, in the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed benchmark indices; gained 0.49% and 0.66%, respectively. Investors remained cautious ahead of the upcoming fourth quarter earnings results and major macro-economic data points, which are slated to be released during the week. Besides, investors failed to get any sense of relief with report that CII Business Confidence Index released during the weekend, which said that India Inc.'s perceptions about the state of the economy slid in the last quarter of 2016-17, yet industry's confidence levels about the future have peaked to their highest level in more than six years.

On the global front, European markets were trading mixed amid increased geopolitical risks as investors continued to digest the U.S. missile attack in Syria last week. Asian markets were trading in red. Back home, in scrip specific development, Supreme Infrastructure India traded higher after the company achieved the desired milestone of NHAI, being completion of fifty percent of the EPC work in the Panvel Indapur Road BOT Project as per the independent engineer of NHAI.

The BSE Sensex is currently trading at 29624.75, down by 81.86 points or 0.28% after trading in a range of 29590.17 and 29831.32. 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 0.49%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.99%, PSU up by 0.79%, Telecom up by 0.75%, Industrials up by 0.69% and Metal up by 0.65%, while IT down by 0.78%, TECK down by 0.42%, Consumer Durables down by 0.35%, Realty down by 0.26% and Utilities down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.04%, Coal India up by 1.22%, Axis Bank up by 1.18%, Adani Ports & SEZ up by 0.96% and Bharti Airtel up by 0.60%. On the flip side, Asian Paints down by 1.67%, Infosys down by 1.66%, Reliance Industries down by 1.36%, NTPC down by 1.22% and Wipro down by 1.17% were the top losers.

Meanwhile, in order to manage government borrowing programme, the Finance Ministry is likely to set up a full-fledged independent public debt management agency (PDMA) by the end of 2018, which would help to resolve issues relating to conflict of interest as RBI decides on the key interest rates as well as undertakes buying and selling of government bonds.

At present, the government debt, including market borrowings, is managed by the Reserve Bank of India. Last year, moving towards an independent PDMA, the Finance Ministry as an interim arrangement had set up a Public Debt Management Cell (PDMC) at RBI's Delhi office, to allow separation of debt management functions from RBI to PDMA in a gradual and seamless manner, without causing market disruptions and it has given the overall charge of the PDMC to the Joint Secretary (Budget), Department of Economic Affairs.

Currently, the PDMC has only advisory functions to avoid any conflict with the statutory functions of the RBI. PDMC has been tasked to plan government borrowings, including market borrowings and other borrowings, like Sovereign Gold Bond issuance. Other functions of PDMC are to manage government's liabilities, monitor cash balances, improve cash forecasting and foster a liquid and efficient market for government securities.

The CNX Nifty is currently trading at 9186.05, down by 12.25 points or 0.13% after trading in a range of 9174.85 and 9225.65. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Indian Oil Corp. up by 3.64%, BPCL up by 3.53%, Bharti Infratel up by 2.98%, Tata Motors - DVR up by 2.55% and Yes Bank up by 2.09%. On the flip side, Indiabulls Housing down by 2.35%, Asian Paints down by 2.10%, Infosys down by 1.69%, NTPC down by 1.55% and Reliance Industries down by 1.47% were the top losers.

Asian markets were trading mostly in red; KOSPI Index decreased 18.41 points or 0.86% to 2,133.32, Shanghai Composite decreased 17.22 points or 0.52% to 3,269.39, Jakarta Composite decreased 14.16 points or 0.25% to 5,639.33, Hang Seng decreased 5.12 points or 0.02% to 24,262.18 and FTSE Bursa Malaysia KLCI decreased 3.87 points or 0.22% to 1,737.85. On the flip side, Taiwan Weighted increased 9.17 points or 0.09% to 9,882.54 and Nikkei 225 increased 133.25 points or 0.71% to 18,797.88.

European markets were trading mixed; France’s CAC decreased 21.14 points or 0.41% to 5,114.14 and Germany’s DAX decreased 8.97 points or 0.07% to 12,216.09. On the flip side, UK’s FTSE 100 increased 3.89 points or 0.05% to 7,353.26.