Indian markets exhibit lackluster movement in noon session

Indian equity indices are displaying listless performance in the noon session as they look to consolidate the gains amassed in last three sessions. The benchmarks appear exhausted as they are gradually crawling sideways in a tight band around the psychological 9,350(Nifty) and 30,100(Sensex) levels lacking any significant triggers. The upside for local bourses was limited after Finance Minister Arun Jaitley expressed concern over the worrying signs of economic protectionism and said the continued unpredictability in ties between major powers has brought new uncertainties to the fore. Besides, derivatives expiry of the April series due later in the day, also kept the momentum cautious. Extending its gains into the fourth straight session, Indian rupee opened higher against the dollar on account of selling of the American currency by banks and exporters.  While stronger rupee can help check inflation as it will pull down commodity prices, export-reliant companies such as IT firms and drug makers are likely to take up to 4% hit on their earnings. Exporters’ body FIEO said the rupee appreciation during the last two months has negatively impacted the country’s exports and demanded immediate support from the government. A stronger rupee against the dollar erodes the margins of the exporters and reduces their competitiveness.

On the global front, recovering from day’s lows, most of the Asian markets were trading in green in Thursday's noon session as investors assessed the scant details of President Donald Trump’s U.S. tax overhaul and a Japanese central bank report forecasting steady growth for Asia’s No. 2 economy. Bank of Japan increased its real gross domestic product (GDP) forecast for the 2017-18 fiscal year to 1.6% from 1.5%, while keeping its target yield for the benchmark 10-year Japanese government bond at around 0% and 80 trillion yen annual pace of expansion of its monetary base. Further, a recovery in exports helped the South Korean economy to expand at the fastest pace in a year, the country’s central bank said. Asia’s No. 4 economy beat forecasts by growing 2.7% in the first quarter, defying a backlash from Chinese consumers over deployment of a U.S. missile defense system. 

Back home, stocks from Consumer Durables, IT and Teck counters were supporting the markets, while those from Metal, FMCG and Energy counters were adding to the underlying cautious undertone. In scrip specific development, KSB Pumps declined after the company reported 20.83% fall in its net profit at Rs 13.34 crore for the quarter ended March 31, 2017 as compared to Rs 16.85 crore for the same quarter in the previous year. On the other hand, GIC Housing Finance gained after the company reported a rise of 29.94% in its net profit at Rs 46.61 crore for the quarter ended March 31, 2017 as compared to Rs 35.87 crore for the same quarter in the previous year.

The market breadth remained pessimistic, as there were 1188 shares on the gaining side against 1352 shares on the losing side, while 133 shares remained unchanged.

The BSE Sensex is currently trading at 30108.51, down by 24.84 points or 0.08% after trading in a range of 30044.77 and 30184.22. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.19%, while Small cap index up by 0.17%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.80%, IT up by 0.72%, TECK up by 0.59%, Power up by 0.50% and Utilities up by 0.49%, while Metal down by 0.54%, FMCG down by 0.41%, Energy down by 0.26%, Capital Goods down by 0.19% and Telecom down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.85%, Tata Motors up by 1.65%, Hero MotoCorp up by 1.15%, Infosys up by 1.02% and Cipla up by 0.67%. On the flip side, Lupin down by 1.46%, ITC down by 1.20%, Axis Bank down by 1.17%, Tata Steel down by 0.83% and Reliance Industries down by 0.80% were the top losers.

Meanwhile, expressing Indian anxieties over worrying signs of economic protectionism, Finance Minister Arun Jaitley has said that the continued unpredictability in ties between major powers has led to new uncertainties. He also said that new barriers to migration as well as the closing of borders are other elements of such an approach. However, he said that such efforts are unlikely to be able to address the complex issues involved.

Referring to India's economic progress, the minister has said that the country will continue to play its due role in the maintenance of regional and international peace and stability. He also clarified that the country’s rapid growth over the past two decades has also helped uplifting the economic trajectory of its smaller neighbours.

Identifying Asia as the stage for global competition, Jaitley said that economies in the region will be critical for global growth. He also pointed out that for the foreseeable future, Asian economies will continue to be the drivers of global growth. He added that Asia could also be emerging as the stage for competition between large and rising powers.

The finance minister further said that Europe appears pre-occupied with the future of the EU project. He said that they are also witnessing a sharpening of divisions in the European continent not seen since the Cold War. He also stated that economic and diplomatic engagement with the Eurasian region is a top priority for India. 

The CNX Nifty is currently trading at 9354.55, up by 2.70 points or 0.03% after trading in a range of 9329.25 and 9363.40. There were 25 stocks advancing against 24 stocks declining on the index, while 2 stocks remained unchanged.

The top gainers on Nifty were Yes Bank up by 2.25%, Tata Motors up by 1.74%, Power Grid up by 1.68%, Kotak Mahindra Bank up by 1.60% and HCL Tech up by 1.36%. On the flip side, Lupin down by 1.52%, ITC down by 1.25%, Axis Bank down by 1.19%, Grasim Industries down by 0.98% and Hindalco down by 0.84% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased by 2.47 points or 0.08% to 3,143.31, KOSPI Index surged by 3.13 points or 0.14% to 2,210.97, Taiwan Weighted rose 4.17 points or 0.04% to 9,860.62 and Hang Seng increased 61.69 points or 0.25% to 24,640.12.

On the other hand, Nikkei 225 declined 32.79 points or 0.17% to 19,256.64, Jakarta Composite slipped by 21.33 points or 0.37% to 5,705.20 and FTSE Bursa Malaysia KLCI was down by 1.25 points or 0.07% to 1,767.67.