Benchmarks continue weak trade in late afternoon session

Benchmark indices continued their weak trade in late afternoon session, as investors looked for more corporate earnings. Traders also took note of CBEC’s chairperson Vanaja Sarna’s statement that the goods and services tax (GST) rates will not be revised unless there is an anomaly or the rates are unjustified. Besides, selling in Metal, IT and Basic Materials too weighted on the sentiments. The Asian Development Bank (ADB) report which predicted Asia’s economy to expand faster in 2017; South Asia to remain the fastest growing of all sub-regions and India to achieve a 7.4 percent growth due to strong consumption, failed to relief the investors’ sentiments. On the global front, European markets were trading in green, supported by a surge in global stocks, as investors awaited a rate decision by the European Central Bank (ECB). Asian markets were also trading in green. Back home, in scrip specific development, ABB India jumped higher after the company reported 13% orders growth in Q2FY18 and 20% orders growth in H1 ending June 30, 2017.

The BSE Sensex is currently trading at 31897.42, down by 57.93 points or 0.18% after trading in a range of 31859.50 and 32057.12. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.43%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Realty up by 0.40%, Bankex up by 0.27%, Capital Goods up by 0.15%, Consumer Durables up by 0.14% and Power up by 0.07%, while Metal down by 0.82%, IT down by 0.75%, Basic Materials down by 0.69%, TECK down by 0.62% and Healthcare down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.74%, ONGC up by 1.81%, Cipla up by 1.07%, HDFC Bank up by 0.53% and Mahindra & Mahindra up by 0.52%. On the flip side, Tata Steel down by 2.45%, NTPC down by 1.40%, Kotak Mahindra Bank down by 1.19%, Sun Pharma down by 1.05% and Infosys down by 1.01% were the top losers.

Meanwhile, raising its growth forecast for Asia’s economy for this year, the Asian Development Bank in its latest report has said that the South Asia will remain the fastest growing of all sub-regions in Asia and the Pacific, while Indian economy is expected to achieve previous growth projections 7.4 per cent in 2017 and 7.6 per cent in 2018 on the back of strong consumption demand.

In its Asian Development Outlook Supplement report, the ADB sees the improved growth prospects for developing Asia owing to a strong export demand in the first quarter (Q1) and pegged growth rate of 5.9 per cent for it. The report further said that the combined growth for the major industrial economies will remain at 1.9 per cent in 2017 and 2018.

ADB report sees improved outlook for Central Asia this year as stronger domestic demand and exports in some countries have fueled an unexpected recovery in the sub-region, forecasting growth rate at 3.2 per cent in 2017 and 3.8 per cent in 2018 compared to the original projections of 3.1 per cent and 3.5 per cent, respectively. Besides, it said that growth projections for Southeast Asia are expected to remain at 4.8 per cent in 2017 and 5.0 per cent in 2018.

The CNX Nifty is currently trading at 9875.70, down by 23.90 points or 0.24% after trading in a range of 9863.45 and 9922.55. There were 13 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.84%, ONGC up by 1.81%, Indiabulls Housing Finance up by 1.05%, Cipla up by 1.02% and HDFC Bank up by 0.69%. On the flip side, Tata Steel down by 2.36%, Bharti Infratel down by 2.26%, NTPC down by 1.67%, Ultratech Cement down by 1.38% and HCL Tech. down by 1.21% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 11.9 points or 0.49% to 2,441.84, Shanghai Composite increased 13.89 points or 0.43% to 3,244.87, Jakarta Composite increased 15.76 points or 0.27% to 5,822.45, Hang Seng increased 68.05 points or 0.26% to 26,740.21 and Nikkei 225 increased 123.73 points or 0.62% to 20,144.59. On the flip side, Taiwan Weighted decreased 6.74 points or 0.06% to 10,499.36 and FTSE Bursa Malaysia KLCI decreased 2 points or 0.11% to 1,755.27.

All European markets were trading in green; France’s CAC increased 25.96 points or 0.5% to 5,242.03, UK’s FTSE 100 increased 26.69 points or 0.36% to 7,457.60 and Germany’s DAX increased 80.66 points or 0.65% to 12,532.71.