Weak trade continues on street; FMCG drags

Indian equity benchmarks continued their weak trade in afternoon deals, due to heavy selling in FMCG, oil & gas, consumer durables and metal stocks. Trading Sentiments remained subdued with the industry body Associated Chambers of Commerce & Industry of India’s (ASSOCHAM) latest report stating that the inflation outlook is expected to remain quite muted at least till festival season of Durga Puja and Diwali. Traders even ignored the private survey that Indian CEOs are confident about the growth prospects of the country over the next three years, compared to that of global economy. Moreover, a weak trend at other Asian markets amid concerns about Donald Trump’s economic agenda as he struggles to pass key healthcare legislation, too dampened investors’ sentiments. In scrip specific development, NHPC was trading in green after signing a Power Purchase Agreement (PPA) with BSES Rajdhani Power in respect of seven power stations namely Bairasiul, Salal, Tanakpur, Chamera-I, Uri-I, Sewa-II and Chamera-III on July 14, 2017.

On the global front, Asian markets were trading mostly in red, as the dollar dived on headlines related to stalled efforts to reform U.S. health care. China’s markets surged after strong data reporting that China's economy grew faster than expected in the second quarter as industrial output and consumption picked up and investment remained strong.

The BSE Sensex is currently trading at 31823.49, down by 251.29 points or 0.78% after trading in a range of 31626.44 and 31911.61. There were 28 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.15%, while Small cap index was down by 0.01%.

The top gaining sectoral indices on the BSE were IT up by 0.72%, Healthcare up by 0.68%, TECK up by 0.65%, Auto up by 0.49% and Telecom up by 0.37%, while FMCG down by 5.58%, Energy down by 1.21%, Oil & Gas down by 0.79%, Consumer Durables down by 0.52% and Metal down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 1.71%, Asian Paints up by 1.61%, Power Grid up by 1.48%, Cipla up by 1.33% and Axis Bank up by 1.30%. On the flip side, ITC down by 11.53%, Reliance Industries down by 2.23% and Adani Ports & SEZ down by 0.12% were the top losers.

Meanwhile, the Department of Commerce under the commerce and industry ministry is setting up four new additional centres to develop expertise for handling contemporary and future requirements like international trade law, regional studies, trade promotion and capacity building. The Central government has already given its approval to set up these centres.

The centre for trade and investment law would create a dedicated pool of legal experts who can advise the government on trade and investment issues. The centre for regional trade would analyse economic developments in different regions and assessing their implications for India. On the other hand, centre for trade-related capacity building would undertake training for government officials/stake holders of India.

In the current financial year, two of the centres - Centre for Trade and Investment Law and Centre for Regional Trade, have already become operational. These centres would help to expand the research capabilities of the centre for WTO studies under renamed Institution Centre for Research and International Trade (CRIT). The objective of the CRIT is to influence international discourse on trade and investment issues in consonance with India's interest.

The CNX Nifty is currently trading at 9856.45, down by 59.50 points or 0.60% after trading in a range of 9792.05 and 9885.35. There were 41 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were ACC up by 1.99%, Ultratech Cement up by 1.80%, Dr. Reddy’s Lab up by 1.64%, Asian Paints up by 1.59% and Power Grid up by 1.48%. On the flip side, ITC down by 11.58%, Reliance Industries down by 2.24%, GAIL India down by 2.14%, Aurobindo Pharma down by 1.46% and Indusind Bank down by 0.83% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 118.95 points or 0.59% to 19,999.91, Jakarta Composite shed 25.05 points or 0.43% to 5,816.23, Hang Seng dipped 3.34 points or 0.01% to 26,467.24 and FTSE Bursa Malaysia KLCI was down by 1.6 points or 0.09% to 1,753.59.

On the flip side, KOSPI Index rose 0.94 points or 0.04% to 2,426.04, Shanghai Composite added 2.91 points or 0.09% to 3,179.37 and Taiwan Weighted was up by 23.72 points or 0.23% to 10,481.26.