Indian equity benchmarks continued their weak trade in early afternoon deals, as investors adopted a cautious approach in view of February derivatives expiry. Sentiment on the street weakened with report that the country’s investment climate during April-December period of this fiscal looks subdued with declining figures in announcements of new projects and the number of projects under execution. The value of investment in new projects during April-December was Rs 4.43 trillion, less than half of Rs 9.21 trillion in the comparable period of last fiscal. Traders overlooked a report stating that India’s Gross Domestic Product (GDP) growth in the third quarter of the current fiscal is likely to be in the range of 6.5-7 per cent and may expand further in following three months. The country’s GDP grew by 6.3 per cent in July-September quarter of the fiscal, up from 5.7 per cent in the first quarter. Moreover, subdued trend in Asian markets and selling in Oil & Gas, Energy, PSU and Auto stocks, continued to weigh on the sentiments. In scrip specific development, Glenmark Pharmaceuticals was up by over half a percent on entering into an exclusive agreement with Sam Chun Dang Pharm. Co. (SCD), to develop, manufacture and market a portfolio of ophthalmic products in the US and Canada.
On the global front, Asian markets were trading mostly in red, fuelling fears of fresh volatility after Federal Reserve minutes fanned expectations US interest rates would rise further. Back home, the BSE Sensex is currently trading at 33715.05, down by 129.81 points or 0.38% after trading in a range of 33691.56 and 33817.09. There were 9 stocks advancing against 22 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index was down by 0.32%, while Small cap index was down by 0.19%.
The top gaining sectoral indices on the BSE were IT up by 0.56%, Healthcare up by 0.36% and TECK up by 0.19%, while Oil & Gas down by 1.54%, Energy down by 0.99%, PSU down by 0.98%, Auto down by 0.85%, Utilities down by 0.81% were the top losing indices on BSE.
The top gainers on the Sensex were Sun Pharma up by 2.72%, Adani Ports & SEZ up by 1.35%, Yes Bank up by 1.23%, Indusind Bank up by 0.70% and Kotak Mahindra Bank up by 0.55%. On the flip side, Dr. Reddy’s Lab down by 2.99%, ONGC down by 2.00%, Power Grid down by 1.34%, Tata Motors down by 1.15% and Hindustan Unilever down by 1.13% were the top losers.
Meanwhile, ahead of the release of Gross Domestic Product (GDP) data by Central Statistics Office, the State Bank of India (SBI) Research in its latest report has said that Indian economy is likely to grow in the range of 6.5-7 percent during the third quarter of the current fiscal year 2017-18. It also said that the country’s economy in fourth quarter of FY18 may grow by 7 percent. Besides, the country’s GDP grew by 6.3 percent in Q2 FY18, up from 5.7 percent in the Q1 FY18.
According to the SBI’s research report Ecowrap, the yearly SBI Composite Index for February 2018 is at 33-month high at 55.0 (moderate growth), compared to 52.1 (moderate growth) in January 2018. It also expects that manufacturing Gross Value Added (GVA) would be in the range of 8-10 percent for the Q3 FY18, if the current trend persists for remaining companies also. It added that a synchronised global growth coupled with an uptick in commodity cycle will also help sectors like metals, textiles and sugar.
However, the report warned that the recent developments in the financial markets may restrict the further growth of the Indian economy. SBI Research expects that it to be a passing phase in business cycle. Besides, the financial markets have been impacted following a Rs 11,400 crore fraud at India’s second largest bank Punjab National Bank (PNB).
The CNX Nifty is currently trading at 10351.35, down by 46.10 points or 0.44% after trading in a range of 10340.65 and 10365.35. There were 12 stocks advancing against 38 stocks declining on the index.
The top gainers on Nifty were Sun Pharma up by 2.61%, Indiabulls Housing Finance up by 1.50%, Aurobindo Pharma up by 1.36%, Adani Ports & SEZ up by 1.20% and Tech Mahindra up by 1.14%. On the flip side, BPCL down by 4.31%, Dr. Reddy’s Lab down by 2.91%, ONGC down by 2.13%, GAIL India down by 2.01% and Bharti Infratel down by 2.00% were the top losers.
The Asian markets were trading mostly in red; Hang Seng decreased 310.41 points or 0.99% to 31,121.48, Nikkei 225 was down by 234.37 points or 1.07% to 21,736.44, Taiwan Weighted shed 52.06 points or 0.49% to 10,662.38, Jakarta Composite dropped 26.53 points or 0.4% to 6,616.87, KOSPI Index decreased 15.37 points or 0.63% to 2,414.28 and FTSE Bursa Malaysia KLCI dipped 1.24 points or 0.07% to 1,856.93.
On the flip side, Shanghai Composite was up by 65.59 points or 2.05% to 3,264.75.
