Losses deepen to push markets at day’s lows

Indian equity benchmarks extended losses in late afternoon session to hit intraday lows, as investors continued to pare their riskier positions amid rise in geopolitical tensions between the US and North Korea. Besides, the broader market indices also showcased a down trend. Sentiments got affected further after the finance ministry said in its mid-year economic survey that there are downside risks to the Indian government’s growth forecast of 6.75-7.5% for the fiscal year to March 2018. Furthermore, traders remained concerned with the report stating that the Reserve Bank of India (RBI) halved its dividend payout to the government to Rs 30,659 crore for the fiscal ended June 2017. Last fiscal, the RBI had transferred Rs 65,876 crore surplus as dividend to the government.

On the global front, European markets were trading in red on Friday, with caution still lingering as tension between US and North Korea escalated, and as German consumer-goods company Henkel AG & Co. was among the companies whose shares pulled the market toward a second consecutive decline. Back home, in scrip specific development, Pondy Oxides gained on plan to commence trial production at Kancheepuram facility on August 16, 2017. The unit has obtained the necessary statutory approvals and completed construction of the building and installation of the machineries and accordingly the trial production will commence on August 16, 2017.

The BSE Sensex is currently trading at 31137.59, down by 393.74 points or 1.25% after trading in a range of 31133.93 and 31379.20. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.42%, while Small cap index was down by 0.90%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.14% and IT up by 0.01%, while Metal down by 2.72%, Realty down by 1.96%, Auto down by 1.89%, Capital Goods down by 1.70% and PSU down by 1.53% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 2.62%, Wipro up by 0.80%, Infosys up by 0.62%, Lupin up by 0.20% and Tata Motors - DVR up by 0.02%. On the flip side, SBI down by 5.19%, Mahindra & Mahindra down by 3.01%, Larsen & Toubro down by 2.59%, Tata Motors down by 2.47% and Reliance Industries down by 2.47% were the top losers.

Meanwhile, in order to enable the textile industry achieve its full potential of production, exports and employment, the government has set up institutional mechanisms including a Steering Committee, an Inter-Ministerial Synergy Group and a Task Force. These mechanisms will synergize efforts of the Ministry of Textiles, related Ministries and state governments to achieve the aim of the government.

The government in a notification said that it has received several recommendations for this, which is being carry forwarded to form institutional mechanisms including relevant Ministries, State Governments and Industry partners.  The government has set up a Steering Committee to oversee implementation of a Knowledge Network Management System (KNMS) to facilitate exchange of knowledge amongst academia, farming community and the industry on the productivity of natural fibres and diversification of their bye-products.

A Task Force has been set up to steer follow-up action on various outcomes of Textiles India 2017 for growth of the textiles sector, while an Inter-Ministerial Synergy Group on Man-Made Fibre (MMF) would formulate policy interventions to enhance growth and competitiveness of MMF industry in India.

The CNX Nifty is currently trading at 9692.30, down by 127.95 points or 1.30% after trading in a range of 9687.95 and 9771.65. There were 9 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 2.81%, BPCL up by 1.43%, Aurobindo Pharma up by 1.02%, Infosys up by 0.76% and Wipro up by 0.57%. On the flip side, SBI down by 5.54%, Hindalco down by 5.44%, Vedanta down by 4.84%, Bosch down by 4.22% and Bank of Baroda down by 3.84% were the top losers.

Asian markets were trading in red; Hang Seng decreased 560.49 points or 2.04% to 26,883.51, Jakarta Composite decreased 58.16 points or 1% to 5,767.78, Shanghai Composite decreased 53.21 points or 1.63% to 3,208.54, KOSPI Index decreased 39.76 points or 1.69% to 2,319.71, FTSE Bursa Malaysia KLCI decreased 8.59 points or 0.48% to 1,769.18 and Taiwan Weighted decreased 0.17 points or 0% to 10,329.57.

European markets were trading in red; UK’s FTSE 100 decreased 83.54 points or 1.13% to 7,306.40, Germany’s DAX decreased 66.32 points or 0.55% to 11,947.98 and France’s CAC decreased 62.01 points or 1.21% to 5,053.22.