Local bourses trade with modest losses

Key benchmark indices erased their all gains and started trading in red terrain with small losses in early afternoon session, on account of selling in frontline blue chip counters. The sentiments turned pessimistic with former President Pranab Mukherjee’s statement that the country’s demographic dividend runs the risk of turning into a demographic disaster if employment is not generated. He added that the country has achieved an economic growth of 6-8% in the last couple of decades but the inequality among different classes of the society is still huge and unacceptable. Investors failed to take further support with the India Meteorological Department (IMD) forecasting that India will receive normal monsoon for a third consecutive year.
However, the broader indices were managing to hold their heads above water with gains in the range of 0.05%-0.15%. Meanwhile, rupee shed 11 paise to 65.60 against the US currency in early trade, following continued bouts of dollar demand from banks and importers amid higher dollar overseas. In scrip specific development, JM Financial was up by over half a percent with its subsidiary - JM Financial Products completing the second leg of acquisition of 8,78,028 equity shares of Spandana Sphoorty Financial.

On the global front, Asian markets were trading mostly in red, as investors digested the release of better-than-expected China data. China's economy grew 6.8 percent in the first quarter of 2018. The figure beat an estimate of 6.7 percent on year growth projected in a Reuters poll. Back home, the BSE Sensex is currently trading at 34287.86, down by 17.57 points or 0.05% after trading in a range of 34278.21 and 34413.83. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were Power up by 1.13%, Utilities up by 0.87%, Consumer Durables up by 0.43%, Metal up by 0.36% and FMCG up by 0.30%, while IT down by 0.77%, TECK down by 0.69%, Healthcare down by 0.30%, Capital Goods down by 0.30% and Auto down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.74%, NTPC up by 1.96%, Mahindra & Mahindra up by 1.14%, Coal India up by 1.10% and Hindustan Unilever up by 1.07%. On the flip side, Wipro down by 1.78%, Tata Motors down by 1.48%, Tata Motors - DVR down by 1.45%, Sun Pharma down by 1.32% and Axis Bank down by 1.21% were the top losers.

Meanwhile, raising the possibility of higher farm output and a boost to the rains-dependent rural economy, the India Meteorological Department (IMD), the country’s national weather forecaster, has said that India would receive ‘normal’ monsoon for the third straight year. It noted that seasonal monsoon rainfall is likely to be 97 percent of the long period average (LPA) in 2018, with a margin error of plus or minus 5 percent. It added that last year, the country just about managed to receive normal rainfall-95 percent of the long-period average.

The Met department has pointed out that nearly 50 percent of India’s cultivable farm area depend on the monsoon, making it lifeline of the country’s rural economy and agriculture sector that has been lagging the overall economic growth rate. It also stated that the four-month monsoon season from June to September provides about 75 percent of annual rainfall to the country.  

According to IMD, the country would not face monsoon deficit this year, there are good chances of normal rainfall with 42 percent chances of normal and 12 percent chances of above normal rainfall. It also said that there was very less probability of a deficient monsoon. As per the IMD parameter, rainfall less than 90 percent of the LPA is considered as deficient, between 90-96 percent is below normal, between 96-104 percent is normal, 104-110 percent is above normal and above 110 percent of LPA is considered as excess. 

The CNX Nifty is currently trading at 10516.80, down by 11.55 points or 0.11% after trading in a range of 10512.85 and 10557.55. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 2.64%, NTPC up by 1.98%, Hindalco up by 1.36%, Hindustan Unilever up by 1.19% and Mahindra & Mahindra up by 1.19%. On the flip side, Tata Motors down by 1.89%, Wipro down by 1.81%, Sun Pharma down by 1.47%, Axis Bank down by 1.34% and Bharti Infratel down by 1.19% were the top losers.

The Asian markets were trading mostly in red; Taiwan Weighted decreased 144.1 points or 1.32% to 10,810.45, Hang Seng was down by 52.44 points or 0.17% to 30,263.15, Shanghai Composite shed 25.72 points or 0.83% to 3,084.93 and KOSPI Index dipped 3.72 points or 0.15% to 2,453.77.

On the flip side, FTSE Bursa Malaysia KLCI increased 4.03 points or 0.21% to 1,882.79, Jakarta Composite rose 8.79 points or 0.14% to 6,295.54 and Nikkei 225 added 12.06 points or 0.06% to 21,847.59.