Sensex, Nifty off day’s high

The local equity benchmarks pared some gains in late afternoon session to come off their intraday high points, due to weak opening in European markets. Selling pressure in Metal, Basic Materials and Power stocks along with major industry losers like Tata Steel, Adani Ports & SEZ and Axis Bank, hit the market sentiments.  Some anxiety spread among the investors with a private report stating that India Inc has nearly 1.8 lakh crore of cash trapped in it balance sheet as working capital situation worsens on account of increase in inventory levels. The report also found that the cash conversion cycle has deteriorated by 4percent from FY16, to 44 days in FY17. Traders were also cautious with Indian Steel Authority’s report that US President Donald Trump’s move to hike import tariffs on steel will adversely hit India’s local markets. Traders took note of another private report that Indian retail inflation likely to eased to a four-month low in February on softening prices for vegetable and other perishable foods, but probably stayed above the Reserve Bank of India's target. However, Sensex and Nifty managed to trade above their neutral lines with taking some support from the Economic Affairs Secretary Subhash Chandra Garg’s statement that the growth recovery of Indian economy will continue to be sharp going ahead, as the 7.2% expansion in the economy during October-December quarter (third quarter) has put the country in one of the highest growth bracket in the world.

On the global front, European markets were trading in red, as investors reacted to President Donald Trump's decision to impose global duties on metal imports. President Donald Trump implemented import tariffs of 25 percent on steel and 10 percent on aluminum Thursday. Canada and Mexico were exempted from the tax, with Trump also suggesting that other allies could also benefit from exclusions. However, Asian markets were trading in green. Back home, in scrip specific development, Kilburn Engineering gained on bagging various orders/Letters of Intent (LoI) worth Rs 4368.74 lakh during October 2017 to March 2018 period.

The BSE Sensex is currently trading at 33389.83, up by 38.26 points or 0.11% after trading in a range of 33316.58 and 33519.49. There were 17 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.11%, while Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were TECK up by 0.51%, IT up by 0.51%, Consumer Disc up by 0.40%, Capital Goods up by 0.38% and FMCG up by 0.31%, while Metal down by 1.53%, Basic Materials down by 0.79%, Bankex down by 0.46%, Power down by 0.45% and PSU down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.45%, Mahindra & Mahindra up by 1.13%, TCS up by 0.85%, Larsen & Toubro up by 0.81% and ITC up by 0.68%. On the flip side, Tata Steel down by 4.20%, Adani Ports & SEZ down by 3.08%, Axis Bank down by 1.74%, ICICI Bank down by 1.45% and Tata Motors down by 1.13% were the top losers.

Meanwhile, a day after the government gave nod to a relief package for financially-stressed telecom sector, the Telecom Minister Manoj Sinha has said that the telecom companies now need to focus on improving services for the consumers instead of fighting among themselves.

The Telecom Minister further listed the benefits of the government’s decision, noting that the move will help in consolidation, drive investments and improve the ease of doing business in the sector along with immediate relief to the telecom companies. Besides, he said that the services would also get improved, as the move will ensure that the companies get contiguous spectrum.

Manoj Sinha also noted that some effect will also be seen on the state of call drops, but with relaxing spectrum caps the issue of call drops will get eradicated will not be correct. He further highlighted the government’s efforts to help the sector even it bound by the rules, regulations and timeline for spectrum auctions.
The Union Cabinet gave telcos 16 years to pay for spectrum, excluding a two-year moratorium, from 10 years previously and also relaxed the spectrum holding limit for telecom companies to 35% from 25% at present.

The CNX Nifty is currently trading at 10256.05, up by 13.40 points or 0.13% after trading in a range of 10230.55 and 10296.70. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 1.97%, Tech Mahindra up by 1.63%, HDFC up by 1.32%, Mahindra & Mahindra up by 1.24% and Zee Entertainment up by 1.14%. On the flip side, Tata Steel down by 4.29%, Adani Ports & SEZ down by 2.98%, Axis Bank down by 1.78%, ICICI Bank down by 1.36% and Cipla down by 1.16% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.82 points or 0.1% to 1,841.44, Shanghai Composite increased 18.76 points or 0.57% to 3,307.17, KOSPI Index increased 26.37 points or 1.08% to 2,459.45, Taiwan Weighted increased 41.58 points or 0.38% to 10,864.82, Nikkei 225 increased 101.13 points or 0.47% to 21,469.20 and Hang Seng increased 341.69 points or 1.11% to 30,996.21. On the flip side, Jakarta Composite decreased 26.71 points or 0.41% to 6,416.31.

All European markets were trading in red; Germany’s DAX decreased 31.24 points or 0.25% to 12,324.33, France’s CAC decreased 6.72 points or 0.13% to 5,247.38 and UK’s FTSE 100 decreased 6.05 points or 0.08% to 7,197.19.