Lackluster trade persists on Dalal Street; Realty, Metals drag

Key benchmark indices continued to trade on a lackluster note in late morning session, with Sensex and Nifty down by 120 and 45 points, respectively, on the back of selling in Realty, Metal and Basic Materials stocks. Market participants lacked buying confidence amid mixed trading on Asian bourses after the outcome of the Federal Reserve meeting. In line with larger peers, the broader indices were too trading on a lackluster note, with losses of more than half a percent. Sentiments remained concerned with the survey report stating that optimism level among India's chief financial officers during July-September touched a one and half year low amid concerns related to subdued demand and strain on corporate balance sheet. Traders failed to get relief from Finance minister Arun Jaitley’s statement that the government would soon announce measures to revive economic growth that has decelerated to the slowest pace in three years.

On the global front, Asian markets were trading mixed after the US Federal Reserve signaled it expects another interest rate hike by year-end and disclosed timing for reducing its balance sheet. Back home, in scrip specific development, NTPC traded higher on plans to add 32 GW of clean energy by 2032, in addition to its plan to create 15 GW of solar capacity under National Solar Mission. The power major is also creating electric vehicle charging infrastructure in the country.

The BSE Sensex is currently trading at 32280.74, down by 119.77 points or 0.37% after trading in a range of 32164.42 and 32462.61. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.59%, while Small cap index was down by 0.86%.

The lone gaining sectoral index on the BSE were Healthcare up by 1.86%, while Realty down by 1.71%, Metal down by 1.33%, Basic Materials down by 1.03%, Capital Goods down by 0.97% and Consumer Durables down by 0.90% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 5.00%, Lupin up by 3.60%, Cipla up by 2.96%, Sun Pharma up by 1.66% and HDFC up by 0.59%. On the flip side, Tata Motors - DVR down by 2.48%, ICICI Bank down by 2.29%, Coal India down by 2.05%, Axis Bank down by 1.34% and ONGC down by 1.31% were the top losers.

Meanwhile, with an aim to revive India’s GDP growth that has decelerated to the slowest pace in three years, Finance Minister Arun Jaitley has hinted a package of measures, while nearly ruling out any cut in duties on petroleum products to check the spike in fuel prices. However, he refused to reveal details and said that the measures would be announced soon, after consulting Prime Minister.

The finance minister has stated that in the last few days, they have held a series of meetings with some of his ministerial colleagues and senior government officials to take stock of the situation and firm up steps to push up growth. He also said that they have taken note of all the economic indicators which are available and this has been a pro-active government on the reforms agenda. Further, he highlighted that they have been taking appropriate actions and consistently moving on the reform agenda.

On the current high transport fuel prices, Jaitley said that it was a temporary spike in global prices caused by the supply-demand mismatch due to hurricanes that hit the US coast. Asked about the possibility of a cut in excise duties on petroleum products, he said that government needed money for public spending to push growth and for social sector schemes. He said “States are taking so much tax... states under the Left and Congress should take steps to lower cesses.”

Meanwhile, the country’s economic growth unexpectedly slowed to 5.7% in the June quarter, the slowest pace in three years, underlining the disruption caused by the uncertainty related to the rollout of the goods and services tax (GST) even as the Indian economy is struggling to recover from a shock demonetisation.

The CNX Nifty is currently trading at 10095.80, down by 45.35 points or 0.45% after trading in a range of 10058.60 and 10158.90. There were 16 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 4.43%, Lupin up by 3.51%, Cipla up by 2.95%, Sun Pharma up by 1.98% and Aurobindo Pharma up by 1.48%. On the flip side, Tata Motors - DVR down by 2.70%, Zee Entertainment down by 2.44%, Indiabulls Housing Finance down by 2.35%, ICICI Bank down by 2.22% and Coal India down by 2.18% were the top losers.

Asian markets were trading mixed; Shanghai Composite increased 0.9 points or 0.03% to 3,366.89, Nikkei 225 increased 48.79 points or 0.24% to 20,359.25 and Taiwan Weighted increased 59.27 points or 0.56% to 10,578.44.

On the flip side, Hang Seng decreased 31.47 points or 0.11% to 28,096.33 and KOSPI Index decreased 3.86 points or 0.16% to 2,408.34.