Markets pare gains in late afternoon session

Indian equity benchmarks pared their initial gains in late afternoon session due to emergence of fresh selling in Realty, Metal and Healthcare stocks amid weak opening in European markets. Besides, investors were eyeing on the India Meteorological Department's first monsoon prediction for 2017. The IMD is expected to announce its forecast today. The markets trimmed gains with the private report that retail inflation is expected at 4.8 percent for the current financial year and fears in this regard are exaggerated as the country will continue to witness benign prices. However, World Bank’s report stating that India’s GDP is expected to see uptick from 6.8 percent in 2016-2017 to 7.2 percent by current fiscal year and rise further to 7.5 per cent in 2018-19 fiscal, helped the indices to remain in positive territory. Some support also came with the report that Engineering Export Promotion Council of India (EEPC) has sought intervention of the commerce ministry to curb volatility steel and rupee. Besides, the exporter's body urged that engineering exporters should be provided steel at the export prices of domestic steel companies.

On the global front, European markets were trading in red as tensions between North Korea and the U.S. intensified and European monitors criticized Turkey's referendum. However, Asian markets were trading in green. Back home, in scrip specific development, Orchid Pharma jumped higher after the company received the Establishment Inspection Report (EIR) from USFDA based on the successful inspection of the formulation manufacturing facility located at Plot Nos B5 (Pt) & B6 (Pt), SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kancheepuram District in Tamil Nadu, India. The facility was inspected by USFDA in December 2016.

The BSE Sensex is currently trading at 29508.91, up by 95.25 points or 0.32% after trading in a range of 29473.30 and 29701.19. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.31%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Utilities up by 1.10%, Power up by 1.03%, Bankex up by 0.67%, PSU up by 0.51% and Basic Materials up by 0.37%, while Realty down by 0.54%, Metal down by 0.18%, Healthcare down by 0.09%, Consumer Durables down by 0.07% and Energy down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 1.88%, ICICI Bank up by 1.85%, NTPC up by 1.82%, GAIL India up by 1.68% and Maruti Suzuki up by 1.12%. On the flip side, Coal India down by 1.92%, Sun Pharma down by 1.00%, Tata Steel down by 0.80%, ONGC down by 0.60% and Bajaj Auto down by 0.39% were the top losers.

Meanwhile, raising concerns over the sharp rise in rupee value and increase in prices of steel, Engineering Export Promotion Council of India (EEPC) has sought intervention of the commerce ministry to curb such volatility, which it claims to be adversely impacting the sector and acting as a double whammy for engineering exporters in a highly competitive global market.

EEPC said that they have sought urgent attention of the government on these two issues, since these developments are making it extremely difficult for exporters to face international competition more so when the global conditions are one of protectionism and competing countries.

The exporter's body urged that engineering exporters should be provided steel at the export prices of domestic steel companies, noting that the sharp appreciation has come together with an increase in Indian steel prices from $ 582 per ton in September 2016 to $712 per ton in March 2017 implying an increase of nearly 22.5 per cent within a span of six months.

EEPC had recently requested the RBI and the government to keep a close watch on a rupee, saying that exporters cannot afford such volatility with pressure of value erosion and noted that the debilitating impact of sharp rise in rupee against dollar in the last three months might derail the exports recovery.

The CNX Nifty is currently trading at 9163.50, up by 24.20 points or 0.26% after trading in a range of 9150.90 and 9217.90. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 3.08%, Indian Oil Corp. up by 2.31%, Hindalco up by 1.93%, Adani Ports & SEZ up by 1.77% and NTPC up by 1.76%. On the flip side, Coal India down by 2.03%, Eicher Motors down by 1.54%, Ambuja Cement down by 1.46%, Tata Motors - DVR down by 1.29% and Sun Pharma down by 1.00% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 2.7 points or 0.13% to 2,148.46, FTSE Bursa Malaysia KLCI increased 4.79 points or 0.28% to 1,738.72, Taiwan Weighted increased 30.16 points or 0.31% to 9,746.56, Jakarta Composite increased 32.35 points or 0.58% to 5,609.83 and Nikkei 225 increased 63.33 points or 0.35% to 18,418.59. On the flip side, Hang Seng decreased 337.12 points or 1.39% to 23,924.54 and Shanghai Composite decreased 25.45 points or 0.79% to 3,196.71.

All European markets were trading in red; UK’s FTSE 100 decreased 73.81 points or 1.01% to 7,253.78, France’s CAC decreased 40.64 points or 0.8% to 5,030.46 and Germany’s DAX decreased 29.17 points or 0.24% to 12,079.83.