Markets continue lackluster trade in late afternoon session

Mirroring weak European and Asian markets, Indian equity benchmarks continued their lackluster trade in late afternoon session on the back of selling pressure in Healthcare, Oil & Gas and Metal stocks. Besides, investors remained cautious ahead of the outcome of the two-day US Federal Open Market Committee (FOMC) meet, due later in the evening. The Fed is widely expected to stand pat on interest rates, but may offer hints on the possibility of a rate hike in June. Back on domestic turf, sentiments remained downbeat with the UN report projecting that India’s growth to remain stable at 7.1% in 2017 before edging up to 7.5% in 2018. It further stated that if the US policies take a very severe protectionist turn and the trend spreads, the India’s growth could be affected by as much as 1.2 per cent in the coming years. However, down side remained capped with the report that Prime Minister Narendra Modi is reviewing the progress of the government’s agenda to curb black-money and tax evasion as well as the roll out of the Goods and Services Tax (GST). The government intends to implement the GST from July 1, 2017. Furthermore, select PSU banks stock  were trading higher on NSE with India Ratings’ report that RBI's disclosure rules will make NPA recognition better.

On the global front, European markets were trading in red as investors digested the latest in Brexit negotiations and corporate earnings. Asian markets were also trading in red. Back home, in scrip specific development, Thomas Cook India traded higher after the company’s wholly owned subsidiary- Travel Corporation (India) entered into Joint Venture (JV) Agreement with DER Touristik Group to form a Joint Venture Company ‘TCI Go Vacation India’ to be operational from Delhi NCR. 

The BSE Sensex is currently trading at 29885.38, down by 35.80 points or 0.12% after trading in a range of 29867.14 and 30020.59. There were 14 stocks advancing against 15 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in red; the BSE Mid cap index was down by 0.39%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were IT up by 1.19%, Realty up by 1.02%, TECK up by 0.80%, Telecom up by 0.26% and Basic Materials up by 0.20%, while Healthcare down by 0.89%, Oil & Gas down by 0.83%, Metal down by 0.77%, Energy down by 0.51% and Bankex down by 0.45% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 2.46%, TCS up by 1.98%, Infosys up by 1.30%, Bajaj Auto up by 0.69% and Coal India up by 0.58%. On the flip side, Lupin down by 2.89%, Adani Ports & SEZ down by 1.30%, ICICI Bank down by 1.29%, Tata Steel down by 1.26% and Sun Pharma down by 0.78% were the top losers.

Meanwhile, with an aim to map economic activities more accurately and ensure compatibility with growth numbers, the government will launch the new Index of Industrial Production (IIP) series with a new base year of 2011-12 on May 9, 2017, which will capture industrial activities on monthly basis. At present, the IIP has the base year of 2004-05 which was revised in 2011.

The government’s move to change the baseline is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts. The Central Statistics Office (CSO) has already changed the base year for the country's national accounts, including the gross domestic product (GDP) and the gross value addition (GVA). The retail inflation based on the consumer price index (CPI) is also calculated on the base year of 2011-12.

The new base year of 2011-12 has been finalised and a high-level panel had firmed up the methodology for the IIP index. Besides, the government is working to change the base year of the wholesale price index (WPI) to 2011-12. The base year is revised periodically to capture the changes in the structure and composition of the industry over time due to technological changes, economic reforms and consumption pattern of the people.

The CNX Nifty is currently trading at 9307.05, down by 6.75 points or 0.07% after trading in a range of 9298.40 and 9346.30. There were 26 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.63%, Power Grid Corporation up by 2.31%, Ultratech Cement up by 2.12%, TCS up by 2.04% and Infosys up by 1.06%. On the flip side, Lupin down by 2.78%, Aurobindo Pharma down by 2.06%, Tata Power down by 1.73%, Zee Entertainment down by 1.67% and Hindalco down by 1.50% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite decreased 22.85 points or 0.4% to 5,652.96, Shanghai Composite decreased 8.37 points or 0.27% to 3,135.35 and FTSE Bursa Malaysia KLCI decreased 6.33 points or 0.36% to 1,772.14. On the flip side, Taiwan Weighted increased 14.06 points or 0.14% to 9,955.33 and KOSPI Index increased 14.23 points or 0.65% to 2,219.67.

All the European markets were trading in red; Germany’s DAX decreased 28.52 points or 0.23% to 12,479.38, UK’s FTSE 100 decreased 23.68 points or 0.33% to 7,226.37 and France’s CAC decreased 15.83 points or 0.3% to 5,288.32.