Sensex, Nifty at day’s low; Metal loses shine

Indian equity benchmarks extended losses in late afternoon session to reach at their intraday low points, with the Sensex and Nifty falling more than 150 and 50 points respectively, tracking weak opening in European markets. In line with the larger peers, the broader indices were too trading sluggish with the losses of around 0.70%. Besides, the metal index dipped the most, followed by Oil & Gas and Basic Materials, and the major industry losers such as ONGC, Tata Motors - DVR and Tata Steel, were dragging the key indices down. Some concerns also came with the National Stock Exchange’s (NSE) data report that signalling a weak demand for government bonds among FPIs, an auction of investment limits for debt securities received bids worth Rs 20,712 crore against Rs 26,002 crore bonds put on offer. Traders took note of a private report that the private equity (PE) investments into the country’s real estate sector declined by 19% year on year in financial year 2017-18. The market participants failed to take any sense of relief with a private report that Indian economy is expected to witness a cyclical recovery driven by investments as well as consumption, and the average GDP growth is expected to rise to 7.8% in the first half of this year.

On the global front, European markets were trading in red, as rising yields in the bond markets offset excitement surrounding corporate earnings. Investors also keep an eye on oil prices, which fell back from more than three-year highs on data showing rising fuel inventories and following reports that the United States and France are close to reaching an agreement to preserve the Iran nuclear deal. Asian markets were also trading in red. Back home, in scrip specific development, Zensar Technologies gained after the company reported 7 fold jump in consolidated net profit at Rs 72.65 crore for the quarter ended March 31, 2018 as compared to Rs 10.37 crore for the corresponding quarter in the FY17.

The BSE Sensex is currently trading at 34449.23, down by 167.41 points or 0.48% after trading in a range of 34428.47 and 34631.27. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.68%, while Small cap index was down by 0.67%.

The top gaining sectoral indices on the BSE were Telecom up by 0.98%, IT up by 0.84%, TECK up by 0.73% and Realty up by 0.02%, while Metal down by 1.54%, Oil & Gas down by 1.48%, Basic Materials down by 1.39%, Capital Goods down by 1.19% and Bankex down by 1.05% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.37%, TCS up by 1.75%, Mahindra & Mahindra up by 1.26%, Coal India up by 0.62% and Infosys up by 0.33%. On the flip side, Tata Motors - DVR down by 1.83%, ONGC down by 1.73%, Tata Steel down by 1.72%, ICICI Bank down by 1.65% and Maruti Suzuki down by 1.53% were the top losers.

Meanwhile, underlining efforts of the Centre and state governments to improve the standard of living of people by linking them to small scale industries, Union Commerce and Industry Minister Suresh Prabhu has said that a new industrial policy has been finalized by the government and its major focus will be on encouraging setting up of industries in rural areas.

The minister noted that this industrial policy would also emphasis on linking of self help groups and co-operative institutions with small scale industries and with global supply chain and added that the progress of the country lies in the development of all the villages. He also listed benefits of the government’s other various schemes such as Gram Swaraj Abhiyan and Ayushman Bharat Yojana and noted that the government is also taking efforts to provide all the schemes to every household in the country.

Prabhu said under Gram Swaraj Abhiyan, activities are being undertaken across the country so that the last person in the society gets the information about government schemes and they could take the benefit of schemes. Under Ayushman Bharat Yojana, the government would bear the cost of hospital expenses of BPL families’ members also.

The CNX Nifty is currently trading at 10549.10, down by 65.25 points or 0.61% after trading in a range of 10541.40 and 10612.60. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 3.38%, TCS up by 1.81%, Mahindra & Mahindra up by 1.35%, Coal India up by 0.60% and HCL Tech. up by 0.49%. On the flip side, GAIL India down by 2.83%, Vedanta down by 2.67%, Hindalco down by 2.49%, Grasim Industries down by 2.44% and Cipla down by 2.20% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 308.09 points or 1.01% to 30,328.15, Jakarta Composite decreased 143.5 points or 2.3% to 6,086.14, Nikkei 225 decreased 62.8 points or 0.28% to 22,215.32, Taiwan Weighted decreased 19.53 points or 0.18% to 10,559.97, KOSPI Index decreased 15.33 points or 0.62% to 2,448.81, FTSE Bursa Malaysia KLCI decreased 13.32 points or 0.71% to 1,852.02 and Shanghai Composite decreased 10.95 points or 0.35% to 3,117.97.

All European markets were trading in red; Germany’s DAX decreased 133.83 points or 1.07% to 12,416.99, UK’s FTSE 100 decreased 37.21 points or 0.5% to 7,388.19 and France’s CAC decreased 24.48 points or 0.45% to 5,419.68.