Key benchmark indices trade flat with negative bias

Key benchmark indices were trading flat with bit of negative bias in afternoon session as key corporate results including that of ICICI Bank remained in focus. Sentiments remained dampened with a United Nations (UN) report stating that India is expected to clock 7.1 percent growth this year before edging up to 7.5 percent in 2018. The report warned that the country faces heightened risks related to the concentration of bad loans in the public sector banks. Some concern also came with global rating agency, Fitch Ratings retaining India's 'BBB-' sovereign rating, saying that weak public finances continue to constrain the country's ratings, however it said the outlook on ratings is stable. In scrip specific development, Subex was up by around eleven percent after bagging a new 5-year, multi-million dollar framework contract with BT, following on from its existing contract with the communications provider.

On the global front, Asian markets were trading mixed, as investors turned cautious ahead of the U.S. Federal Reserve's monetary policy decision due later in the day. Back home, the BSE Sensex is currently trading at 29903.91, down by 17.27 points or 0.06% after trading in a range of 29893.05 and 30020.59. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.16%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Realty up by 1.59%, IT up by 1.32%, TECK up by 0.95%, Telecom up by 0.54% and Basic Materials up by 0.40%, while Healthcare down by 0.77%, Capital Goods down by 0.51%, Bankex down by 0.43%, FMCG down by 0.42% and Metal down by 0.41% were the losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.70%, TCS up by 1.92%, Infosys up by 1.56%, Bajaj Auto up by 0.55% and Coal India up by 0.53%. On the flip side, Lupin down by 2.64%, Sun Pharma down by 1.15%, Adani Ports & SEZ down by 1.12%, Tata Steel down by 1.08% and ICICI Bank down by 1.07% were the top losers.

Meanwhile, NITI Aayog Vice Chairman Arvind Panagariya has said that India needs to work simultaneously on both manufacturing sector leg and services sector leg, but more emphasis should be given to manufacturing sector as it creates jobs in large numbers.

Observing that companies like Maruti in India still employs large number of workers, Panagariya has said that there were perception that robots are going to steal jobs. He also said that deployment of robots by companies need not be a big anxiety as the exercise won’t take away jobs, at least not in the next 20 years. Adding further, he said that they have to use all instruments at their disposal.

On setting of quality standards for products, he pointed out that in an economy like India’s, where there is a large informal sector, the imposition of safety standards is going to be very difficult for several informal sectors and also from regulation point of view, to implement the regulation becomes very difficult. Citing the example of Indian carpet industry, he said that unless it is housed in larger factory organisation, it will be difficult to implement safety and labour regulations as the bulk of the Indian carpet industry is spread out.

The CNX Nifty is currently trading at 9309.10, down by 4.70 points or 0.05% after trading in a range of 9308.40 and 9346.30. There were 25 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.62%, Power Grid up by 2.43%, Bharti Infratel up by 1.93%, TCS up by 1.92% and Infosys up by 1.40%. On the flip side, Lupin down by 2.63%, Tata Power down by 1.79%, Aurobindo Pharma down by 1.53%, Zee Entertainment down by 1.29% and Adani Ports & SEZ down by 1.18% were the top losers.

Asian markets were trading mixed; Shanghai Composite decreased 14.11 points or 0.45% to 3,129.61, Jakarta Composite declined 0.93 points or 0.02% to 5,674.88 and FTSE Bursa Malaysia KLCI was down by 0.03 points or 0% to 1,778.44. On the flip side, Taiwan Weighted increased 14.06 points or 0.14% to 9,955.33 and KOSPI Index was up by 14.23 points or 0.65% to 2,219.67.