Indian bourses continue to trade under pressure

Indian bourses continued their weak trade in afternoon session on account of selling witnessed in front line blue chip stocks. Both Sensex and Nifty were trading below their crucial 31,150 and 9,650 marks, respectively. Investors’ maintained cautious approach ahead of key macro data - index of industrial production (IIP) for April and consumer price index-based inflation for May scheduled to be released later today. Sentiments also remained dampened, as the State Bank of India expressed concern that demonetisation, announced in November 2016, may continue to result in slowing down of the economy, and adversely affect its business. It said that the long-term impact of this move on the Indian economy and the banking sector is uncertain. Besides, weak Asian cues coupled with depreciation in Indian rupee against the dollar too weighed down sentiments. On the sectoral front, jewellery stocks such as PC Jeweller and Gitanjali Gems gained after the GST Council decided to reduce GST rates for jewellery making charges to 5 percent from 18 percent earlier.

On the global front, Asian markets were trading mostly in red, as markets turned cautious, ahead of a US Federal Reserve policy meeting that could give hints on the pace of further rate tightening in the months to come and next year. Back home, the BSE Sensex is currently trading at 31109.15, down by 152.91 points or 0.49% after trading in a range of 31070.65 and 31225.43. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.30%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were Realty up by 1.00%, Healthcare up by 0.47% and Oil & Gas up by 0.05%, while Capital Goods down by 1.59%, Industrials down by 1.09%, Bankex down by 0.65%, Consumer Durables down by 0.59% and Telecom down by 0.55% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.08%, GAIL India up by 0.92%, Mahindra & Mahindra up by 0.55%, Tata Steel up by 0.43% and Lupin up by 0.28%. On the flip side, Larsen & Toubro down by 2.52%, Wipro down by 2.38%, ICICI Bank down by 1.40%, Tata Motors down by 1.27% and Adani Ports &SEZ down by 1.25% were the top losers.

Meanwhile, India is likely to become a power surplus nation in the financial year 2017-18, as the energy shortage (ES) and peak power deficit (PPD) in the country is reduced to 0.5 percent in the month of April as compared to 1.4 percent a year ago. According to Central Electricity Authority's (CEA) latest monthly report for April, all India power supply position indicates that the country is likely to have a peak surplus of 6.8 percent and energy surplus of 8.8 percent.

As per the report, many states such as Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Odisha, Punjab, Sikkim and Tripura, West Bengal have reported nil energy shortage in April this year. It also noted that there are other states where energy shortage and peak power deficit has been up to 1 percent in April, which includes Andhra Pradesh, Delhi, Himachal Pradesh (PPD zero), Jharkhand (PPD zero), Maharashtra, Meghalaya (ES zero), Puducherry, Tamil Nadu, Telangana (ES zero), Uttarakhand (PPD zero).

The report has stated that, in April this year, the energy shortage was as low as 0.1 percent each in Western, Southern and Eastern region. However, the Northeastern region has reported energy shortage of 4.5 per cent. It was 1.5 percent in the Northern region. The report also said that peak power deficit too has reduced to 0.8 per cent across the country. It was recorded at 0.1 percent each in Southern, Eastern and Western regions. However, it noted that the Northeastern region reported a peak power deficit of 2.2 percent in April. It was 1.8 per cent in Northern region.

CEA’s report further said that surplus energy in the Southern, Western, Northern and North-Eastern Regions is expected in the order of 7.4 percent, 13 percent, 9.8 percent and 3.0 percent respectively. However, it said that the Eastern region is likely to face minor energy shortage of 0.2 percent which can be met through surplus power in other regions. It has also said that the peaking surplus is likely to prevail in the Northern, Western, Southern, Eastern and North-Eastern regions to the tune of 6.7 percent, 17.2 percent, 1 percent, 10 percent and 2.7 percent respectively.

The CNX Nifty is currently trading at 9620.35, down by 47.90 points or 0.50% after trading in a range of 9606.40 and 9647.05. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.21%, Sun Pharma up by 2.19%, GAIL India up by 1.01%, Indian Oil Corp. up by 0.76% and Aurobindo Pharma up by 0.65%. On the flip side, Larsen & Toubro down by 2.57%, Wipro down by 2.44%, Bank of Baroda down by 2.39%, Tata Motors - DVR down by 2.17% and Ambuja Cement down by 1.49% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 316.35 points or 1.22% to 25,713.94, Nikkei 225 shed 104.68 points or 0.52% to 19,908.58, Taiwan Weighted was down by 89.69 points or 0.88% to 10,109.96, KOSPI Index declined 23.82 points or 1% to 2,357.87 and Shanghai Composite dipped 15.66 points or 0.5% to 3,142.74.

On the flip side, FTSE Bursa Malaysia KLCI increased 3.32 points or 0.19% to 1,788.89 and Jakarta Composite was up by 31.45 points or 0.55% to 5,706.98.