Local bourses enter into red territory in noon deals

The local barometer gauges erased all their gains and entered into red territory in early afternoon session, as key corporate results remained in focus. The sentiments were pessimistic with Grant Thornton’s latest International Business Report (IBR) highlighting that India slipped to the 7th position in the September quarter from the 2nd spot in the previous three months in its ‘business optimism index’, showing clear signs of lag in the economy.  Further, subdued trend in Asian markets along with selling in Healthcare, Realty, Utilities and Auto stocks, too weighed on the sentiments. Traders also remained cautious ahead of Goods and Services Tax (GST) Council meeting starting in Guwahati later in the day, which is likely to slash the indirect tax rates on as many as 165 items. In scrip specific development, ICICI Bank surged by over one and half percent after receiving an approval for domestic fund raising on private placement basis.

On the global front, Asian markets were trading mostly in red. China’s consumer inflation rate accelerated to 1.9% in October from a year earlier, beating market expectations. The consumer price index (CPI) had been expected to increase 1.8% on-year compared with an increase of 1.6% in September. Back home, the BSE Sensex is currently trading at 33182.91, down by 35.90 points or 0.11% after trading in a range of 33173.28 and 33463.80. There were 15 stocks advancing against 15 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.02%, while Small cap index was down by 0.01%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.35%, Energy up by 0.67%, Telecom up by 0.29%, Bankex up by 0.23% and  IT up by 0.21% while, Healthcare down by 0.87%, Realty down by 0.59%, Utilities down by 0.51%, Auto down by 0.50% and Metal down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.78%, Asian Paints up by 1.76%, Reliance Industries up by 1.66%, NTPC up by 1.14% and Adani Ports & SEZ up by 0.94%. On the flip side, ONGC down by 2.27%, HDFC down by 2.05%, ITC down by 1.64%, Coal India down by 1.62% and Axis Bank down by 1.56% were the top losers.

Meanwhile, apex industry body the Gems and Jewellery Export Promotion Council (GJEPC), under the Ministry of Commerce, has said that India's gems and jewellery exports are likely to remain flat in the financial year 2017-18, mainly due to economic slowdown in the overseas market, the introduction of VAT in Dubai and implementation of Goods and Services Tax (GST) regime in July 2017.

The GJEPC Chairman, Praveenshankar Pandya has stated that they saw a decline of 10 percent in overall gems and jewellery exports in the first six months of FY18. However, he also said that overseas shipments fell in the first half of FY18, but the situation is likely to improve in the second half, and the total shipments are likely to be around the same level as the previous fiscal year. He highlighted that the country exported gems and jewellery worth Rs 2.89 lakh crore in FY17, up 12.32 percent from the previous year.

Adding further, the Chairman has said that the diamond trade is a community in itself, therefore it is important to collaborate (among its members) so as to create and nurture sustainable growth. He also said that overseas buyers need to meet face to face and forge good relationships. He mentioned that the India International Diamond Week is a very good forum as it shifts focus from regional buying to global buying at the most competitive rates.

The CNX Nifty is currently trading at 10285.65, down by 17.50 points or 0.17% after trading in a range of 10285.05 and 10368.45. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 1.82%, Asian Paints up by 1.68%, HPCL up by 1.66%, Reliance Industries up by 1.44% and Indiabulls Housing Finance up by 1.36%. On the flip side, Aurobindo Pharma down by 2.80%, ONGC down by 2.62%, HDFC down by 2.13%, Coal India down by 1.82% and Bajaj Finance down by 1.79% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted decreased 75.72 points or 0.7% to 10,743.27, Nikkei 225 shed 45.11 points or 0.2% to 22,868.71, Jakarta Composite was down by 6.69 points or 0.11% to 6,042.69, KOSPI Index dipped 1.83 points or 0.07% to 2,550.57 and Shanghai Composite declined 1.74 points or 0.05% to 3,413.72.

On the flip side, FTSE Bursa Malaysia KLCI increased 3.16 points or 0.18% to 1,747.36 and Hang Seng was up by 167.08 points or 0.58% to 29,074.68.