Markets remain volatile; Telecom lost most

Key Indian equity benchmarks remained volatile in late afternoon session, on the back of weak opening in European markets. Weakness in broader markets along with continuous selling in Telecom and Realty stocks, also weighed on the markets. Besides, the major industry losers like Mahindra & Mahindra, ICICI Bank and Adani Ports & SEZ, were also led volatility on the street. The market sentiments were down, as the Trump Administration decided to slap anti-dumping duty on the stainless steel flanges imported from India and China after it found in its preliminary probe that both the countries had provided subsidies to the exporters. Traders failed to take any relief with a report that private equity (PE) investments witnessed a two-fold jump in February with transactions worth $1.3 billion taking the deal tally for the first two months of this year to $2.3 billion. There were 62 PE deals worth $1,330 million, while in the corresponding period last year there were 45 such transactions worth $588 million. On the sectoral front, stocks of textiles sector were trading higher, after the Cabinet Committee on Economic Affairs (CCEA) approved  ‘Integrated Scheme for Development of Silk Industry’ for the next three years from 2017-18 to 2019-20, with a financial outlay of Rs 2161.68 crore.

On the global front, European markets were trading in red, as traders reacted to a rate hike from the US Federal Reserve. Besides, investors are monitoring a meeting of the Bank of England. Expectations are that Governor Mark Carney will continue to keep the bank on the path for a May rate hike. He is due to address the press at about midday London time. Asian markets were also trading in red. Back home, in scrip specific development, Prataap Snacks traded higher after it achieved annual sales turnover of Rs 1,000 crore for the first time in its history.

The BSE Sensex is currently trading at 33104.92, down by 31.26 points or 0.09% after trading in a range of 32984.69 and 33281.77. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.64%, while Small cap index was down by 0.78%.

The few gaining sectoral indices on the BSE were Metal up by 0.65%, Energy up by 0.53% and Consumer Durables up by 0.47%, while Telecom down by 1.29%, Realty down by 1.24%, Industrials down by 0.84%, Capital Goods down by 0.82% and Auto down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.31%, Indusind Bank up by 1.54%, Reliance Industries up by 1.41%, Tata Motors up by 1.32% and Tata Motors - DVR up by 1.11%. On the flip side, Mahindra & Mahindra down by 2.39%, ICICI Bank down by 1.99%, Adani Ports & SEZ down by 1.94%, SBI down by 1.86% and Maruti Suzuki down by 1.43% were the top losers.

Meanwhile, in order to improve productivity, quality of silk through high quality standards and for overall development of the silk sector, the Cabinet Committee on Economic Affairs (CCEA) has approved  ‘Integrated Scheme for Development of Silk Industry’ for the next three years from 2017-18 to 2019-20, with a financial outlay of Rs 2161.68 crore. The scheme will be implemented by the Ministry through Central Silk Board (CSB).

The Scheme has four components such as initiatives for Research & Development (R&D), Seed Organizations & farmers extension centres, Coordination & Market Development for seed, yarn & silk products and the fourth one is Quality Certification System (QCS).  The scheme is expected to increase the silk production by around 8152 MTs from the level of 30348 MT during 2016-17 to 38500 MT by end of 2019-20 along with Women Empowerment promotion. It will also help to increase productive employment from 85 lakh to 1 crore persons by 2020.

Under the proposed scheme, the encouragement will be given to the Brand Promotion of Indian silk through quality certification by Silk Mark not only in the domestic market but in the Export market as well. Besides, Cocoon Testing Centres & Silk Testing Centres will be set up to promote high quality standards in silkworm seed, cocoon and raw silk and efforts will be strengthened for collaborating with NIFT and NID for support on design and product development.

The CNX Nifty is currently trading at 10144.50, down by 10.75 points or 0.11% after trading in a range of 10107.25 and 10207.85. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 2.64%, ONGC up by 2.39%, Hindalco up by 1.63%, Reliance Industries up by 1.56% and Indusind Bank up by 1.41%. On the flip side, BPCL down by 3.29%, HPCL down by 2.97%, ICICI Bank down by 2.13%, SBI down by 2.02% and Mahindra & Mahindra down by 1.97% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 343.47 points or 1.09% to 31,071.05, Jakarta Composite decreased 49.57 points or 0.79% to 6,263.26, Shanghai Composite decreased 17.47 points or 0.53% to 3,263.48 and Taiwan Weighted decreased 5.23 points or 0.05% to 11,005.84. On the flip side, FTSE Bursa Malaysia KLCI increased 6.2 points or 0.33% to 1,872.00, KOSPI Index increased 11.05 points or 0.44% to 2,496.02 and Nikkei 225 increased 211.02 points or 0.99% to 21,591.99.

All European markets were trading in red; Germany’s DAX decreased 47.4 points or 0.39% to 12,261.75, UK’s FTSE 100 decreased 10.54 points or 0.15% to 7,028.43 and France’s CAC decreased 9.15 points or 0.17% to 5,230.59.