Key benchmarks continue sluggish trade

The Indian equity benchmarks continued their sluggish trade in late morning session, as investors offloaded positions ahead of March F&O expiry and financial year ending. Traders remained concerned with report that the Goods and services tax (GST) collections for February fell to Rs 85,174 crore from Rs 86,318 crore a month earlier, heightening the government’s anxiety over revenue being far below projections. The average monthly central GST (CGST) collections in July-February has been just Rs 23,177 crore, while the Centre’s monthly GST revenue for FY19 is budgeted to be more than double that at Rs 50,325 crore. Traders failed to get any sense of relief from the report the government has slashed its borrowing program in the first half of the FY19, an increased amount to the tune of Rs 3.2 lakh crore will be borrowed in the second half assuming the gross borrowing target is adhered to. Assuming a good monsoon, credit demand will pick up in the second half.

On the global front, Asian markets were trading mostly in red, after US stocks fell sharply on concerns about tighter regulations on the tech industry, denting a brief global equities recovery driven by hopes of easing fears of a trade war between China and the United States. Back on domestic turf, in scrip specific development, ABB surged on opening smart factory for energy efficiency products in Bangalore for the production of electrical protection and connection solutions.

The BSE Sensex is currently trading at 32991.17, down by 183.22 points or 0.55% after trading in a range of 32946.04 and 33104.11. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped by 0.18%, while Small cap index was down by 0.47%.

The few gaining sectoral indices on the BSE were Consumer Durables up by 0.65%, Auto up by 0.03% and FMCG was up by 0.01%, while Telecom down by 1.83%, Metal down by 1.59%, Power down by 0.93%, Basic Materials down by 0.92%, and Utilities was down by 0.84% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 1.98%, Maruti Suzuki up by 0.94%, TCS up by 0.64%, Indusind Bank up by 0.40% and Kotak Mahindra Bank up by 0.27%. On the flip side, Tata Steel down by 3.53%, Bharti Airtel down by 2.53%, NTPC down by 2.13%, ONGC down by 1.73% and Adani Ports &Special down by 1.57% were the top losers.

Meanwhile, the industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its latest report has stated that the 'crisis' facing by India’s banking system, mainly public sector banks (PSBs), should be used as an opportunity to privatise the banks. As per the report, privatisation of the banks should not be done in a harsh manner and be done in a way that is acceptable to the political leadership.

The report noted that for starters, the government equity which is as high as 80 percent in some PSBs, should be brought down to below 50 percent. It also expects that the moment the government equity is below 50 percent, the banks would be out of the clutches of the CVC, CBI and CAG, giving more autonomy and confidence to the top management to lend freely without fear of being haunted. Besides, it said that the boards would then be much more professional and the independent directors would be truly independent.

ASSOCHAM also pointed out that the boards would then be empowered to take strategic decisions without going to the Finance Ministry, although the Reserve Bank of India (RBI) should and would continue to play the role of a regulator, but in a much more effective manner. It added that the narrative must be built to the effect that the government can use both PSBs and private sector banks as the agents of change, without hurting the interest of the lenders.

The CNX Nifty is currently trading at 10133.35, down by 50.80 points or 0.50% after trading in a range of 10112.55 and 10143.80. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.87%, Wipro up by 1.57%, Indiabulls Housing up by 1.22%, UPL up by 1.06% and Maruti Suzuki was up by 1.04%. On the flip side, Tata Steel down by 3.20%, Bharti Airtel down by 2.82%, NTPC down by 2.19%, Hindalco down by 1.85% and Adani Ports was down by 1.66% were the top losers.

All the Asian markets were trading in red; Hang Seng slipped 558.79 points or 1.81% to 30,232.04, Nikkei 225 declined 454.19 points or 2.13% to 20,863.13, Taiwan Weighted descended 121.13 points or 1.1% to 10,865.66, Jakarta Composite down by 46.47 points or 0.75% to 6,162.88, Shanghai Composite decreased 42.22 points or 1.33% to 3,124.43, KOSPI Index slipped 37.26 points or 1.52% to 2,414.80 and FTSE Bursa Malaysia KLCI was down by 3.69 points or 0.2% to 1,858.76.