Sensex, Nifty trade choppy; Consumer Durables, IT stocks fall

Indian equity benchmarks were trading choppy in late afternoon session, on account of weak opening in European markets. The markets got hit with slower expansion in India's factory growth in March along with heavy selling pressure at Consumer Durables and IT counters. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 51.0 in March from 52.1 in February. The domestic sentiments were down after the rating agency Crisil warned that the ongoing probes into the frauds and allegations of improprieties against bankers will dent credit growth in the new fiscal year, even though the banks will see their dud assets piles peaking. However, growth in direct tax collection helped the key indices to cap their losses. The government’s revenue collection during fiscal year 2017-18 has gone up by 17.1 percent at Rs 9.95 lakh crore, supported by the addition of one crore new assessees who have started filing income tax returns. Some support also came with a report that India’s core sector output expanded at a faster pace of 5.3% in February 2018, against the 0.6% growth recorded in February 2017, mainly helped by a robust performance of refinery products, fertilizer and cement segments.

On the global front, European markets were trading in red, as traders return to their desks after a long holiday weekend and ponder the possibility of a global trade war. Asian markets were also trading in red. Back home, in scrip specific development, Uflex gained after the company’s global film manufacturing arm -- Flex Films developed an innovative bi-axially oriented polyethylene terephthalate (BOPET) film with a unique velvety and luxurious surface at its manufacturing plant in Elizabethtown Kentucky in the United States.

The BSE Sensex is currently trading at 33241.55, down by 13.81 points or 0.04% after trading in a range of 33153.83 and 33318.34. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 0.79%.

The top gaining sectoral indices on the BSE were Power up by 1.00%, Telecom up by 0.75%, PSU up by 0.73%, Auto up by 0.70% and Healthcare up by 0.58%, while Consumer Durables down by 1.09%, IT down by 0.49%, TECK down by 0.28%, Capital Goods down by 0.23% and Realty down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.73%, Tata Motors - DVR up by 2.64%, Power Grid Corporation up by 1.95%, Bharti Airtel up by 1.60% and ICICI Bank up by 1.47%. On the flip side, Wipro down by 2.23%, ONGC down by 1.64%, Adani Ports & SEZ down by 1.18%, HDFC down by 1.03% and Larsen & Toubro down by 1.00% were the top losers.

Meanwhile, amid softer expansion in output and new orders, India’s manufacturing sector activity expanded at its slowest pace in the month of March to fall at 5-month low. As per the survey report, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 51.0 in March from 52.1 in February. However, the reading remained above the watershed 50 mark indicating expansion for the eighth consecutive month.

According to the report, thought the output rose to continue expansion rally for eighth successive month with growth in new orders and favourable demand conditions, rate of expansion was modest and the weakest since October, in March. Further, growth was reported across all three broad market groups and consumption goods outperformed the other two market groups. The survey report found that new business placed at manufacturing companies rose for the fifth consecutive month during March but at the weakest pace in the current sequence.

Besides, the inflationary pressures eased in the reported month, as input costs rose at the softer pace and one that was below the series trend, while output charge inflation was marginal and the weakest in the current sequence. However, payroll numbers declined for the first time in eight months, amid reports of spare operating capacity.

The CNX Nifty is currently trading at 10202.50, down by 9.30 points or 0.09% after trading in a range of 10171.05 and 10229.45. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were HPCL up by 3.02%, Indiabulls Housing Finance up by 2.68%, Mahindra & Mahindra up by 2.65%, Power Grid Corporation up by 2.05% and Indian Oil Corporation up by 1.85%. On the flip side, Tech Mahindra down by 3.57%, Hindalco down by 2.25%, Wipro down by 2.12%, Titan Company down by 1.95% and ONGC down by 1.58% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 96.29 points or 0.45% to 21,292.29, Taiwan Weighted decreased 66.74 points or 0.61% to 10,821.53, Shanghai Composite decreased 26.55 points or 0.84% to 3,136.63, Jakarta Composite decreased 15.07 points or 0.24% to 6,225.50, FTSE Bursa Malaysia KLCI decreased 4.28 points or 0.23% to 1,854.07 and KOSPI Index decreased 1.73 points or 0.07% to 2,442.43. On the flip side, Hang Seng increased 86.72 points or 0.29% to 30,180.10.

All European markets were trading in red; Germany’s DAX decreased 162.76 points or 1.35% to 11,933.97, UK’s FTSE 100 decreased 52.29 points or 0.74% to 7,004.32 and France’s CAC decreased 38.94 points or 0.75% to 5,128.36.