Markets at day's low on incremental selling pressure

Extending their losses, the local equity benchmarks continued weak trade and were now trading at the day’s low points in early afternoon session, on the back of sustained selling activities by market-participants. The sentiments remained sluggish with report that India’s trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017. Moreover, negative global cues along with continuous selling in Metal, Energy, Oil & Gas and PSU stocks, also dragged the domestic benchmarks down. Broader indices too were reeling under pressure. Investors didn’t took any relief from IMF report which highlighted that India should see its growth picking up this year after two transitory shocks - the demonetization and the GST - while China’s growth is likely to fall gradually. Meanwhile, the Indian Rupee gained 8 paise, trading at Rs 64.85 for one US dollar.  In scrip specific development, Adani Transmission was up by over half a percent on acquiring 100% equity share capital of FBTL from PFC Consulting on March 14, 2018.

On the global front, Asian markets were trading mostly in red, as reports of more chaos in the Trump administration tested investors' nerves, already frayed by fears that US tariffs could hurt the global economy. Back home, the BSE Sensex is currently trading at 33382.87, down by 302.67 points or 0.90% after trading in a range of 33382.87 and 33691.32. 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 0.37%, while Small cap index was down by 0.15%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.01%, while Metal down by 2.10%, Energy down by 2.06%, Oil & Gas down by 1.98%, PSU down by 1.31% and Basic Materials down by 0.78% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.62%, Power Grid up by 0.67%, Yes Bank up by 0.43%, Wipro up by 0.26% and Indusind Bank up by 0.00%. On the flip side, Coal India down by 5.92%, Tata Motors down by 2.62%, Tata Steel down by 2.44%, ONGC down by 2.15% and Adani Ports & SEZ down by 2.05% were the top losers.

Meanwhile, after two transitory shocks that is the demonetisation and implementation of Goods and Services Tax (GST), the International Monetary Fund (IMF) in its latest G-20 Surveillance Note has said that India should see its growth picking up in the current year. However, it added that China’s growth is likely to fall gradually due to the anticipated withdrawal of fiscal stimulus and moderating credit impulse.

On the global front, the report titled ‘Global Prospects and Policy Challenges’ stated that globally growth is expected to return to a weaker trend. In the US, a higher growth is projected amid buoyant external demand and the expected impact of tax changes and higher federal fiscal spending. It added that emerging economies present a more heterogenous picture. It further said that in emerging Europe, activity will remain buoyant amid strong export demand from the euro area, and the recovery in Brazil and Russia is expected to firm.

According to the IMF, the recent recovery in investment can add to potential output growth, after downward revisions over the past years. However, medium-term prospects are still held down by a host of factors. It also warned that population aging, insufficient reforms, and the slowed accumulation of human capital will likely continue to weigh on growth prospects. It also expressed concern that in the absence of structural reforms that facilitate adjustment and the use of the tax-benefit system to mitigate the divide, could threaten making growth less inclusive and it could also fuel political discontent that deters reforms and thus undermines potential growth going forward.

The CNX Nifty is currently trading at 10259.50, down by 100.65 points or 0.97% after trading in a range of 10258.90 and 10346.30. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 1.65%, Bharti Infratel up by 0.98%, Aurobindo Pharma up by 0.82%, UPL up by 0.74% and Yes Bank up by 0.67%. On the flip side, Coal India down by 5.94%, BPCL down by 3.69%, Indian Oil Corporation down by 3.31%, Tata Motors down by 2.73% and HPCL down by 2.54% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 127.44 points or 0.58% to 21,676.51, Hang Seng was down by 54.99 points or 0.17% to 31,486.11, Jakarta Composite shed 39.06 points or 0.62% to 6,282.84, Shanghai Composite dipped 13.92 points or 0.42% to 3,277.19 and FTSE Bursa Malaysia KLCI dropped 3.49 points or 0.19% to 1,841.78.

On the flip side, KOSPI Index increased 1.59 points or 0.06% to 2,493.97 and Taiwan Weighted was up by 9.25 points or 0.08% to 11,027.70.