Markets off day’s low

Key Indian benchmarks pared most of their losses in late afternoon session to come off their intraday low points, led by buying in Metal, Banking and PSU sector stocks. The losses on the bourses got trimmed, amid the BMI Research’s latest report predicting that the Indian economy is likely to grow at 7.3% in the current financial year (FY19) from 6.6% rate reported in the previous year (FY18) on account of robust activity from the construction, manufacturing, and services sectors. Some relief also came with a report that the government approved an ordinance to amend a law for speedy disposal of commercial disputes, seeking to improve India's ranking in the ease of doing business index. Traders also took note of a report that the revenue department will look at quarterly revenue trends to better gauge the revenue trend. The aim is to increase the average revenue collection from what it achieved last fiscal. However, the indices remained in red terrain, as anxiety remained on the street after India has dropped by three spots to eleventh position in global consultants AT Kearney’s Foreign Direct Investment (FDI) Confidence Index 2018, snapping its two-year rising streak in the rankings. Some cautiousness also came with Reserve Bank of India’s report that the country’s multiple revisions of gross domestic product growth estimates are “confusing,” much less provide a true state of the economy.

On the global front, European markets were trading in red, as investors closely monitored trade talks between the US and China and digested new earnings reports. Asian markets were also trading in red. Back home, in scrip specific development, Astec Lifesciences shined on reporting around 5 fold jump in Q4 consolidated net profit. On consolidated basis, the company has reported around 5 fold jump in its net profit at Rs 17.16 crore for the quarter ended March 31, 2018 as compared to Rs 3.46 crore for the corresponding quarter in the FY17. Total consolidated income of the company rose 42.48% at Rs 130.14 crore for quarter under review as compared to Rs 91.34 crore for the same quarter ended previous year.

The BSE Sensex is currently trading at 35137.43, down by 38.99 points or 0.11% after trading in a range of 35020.08 and 35257.31. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.97%, while Small cap index was down by 0.72%.

The top gaining sectoral indices on the BSE were Metal up by 0.92%, Bankex up by 0.26% and PSU up by 0.17%, while Capital Goods down by 1.36%, Realty down by 1.28%, Industrials down by 1.00%, IT down by 0.98% and TECK down by 0.86% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.34%, Axis Bank up by 2.01%, ICICI Bank up by 1.97%, ONGC up by 1.42% and Tata Steel up by 1.28%. On the flip side, Kotak Mahindra Bank down by 1.73%, Larsen & Toubro down by 1.27%, Wipro down by 1.27%, Hindustan Unilever down by 1.09% and Bharti Airtel down by 1.03% were the top losers.

Meanwhile, after a year of disruptions following the note-ban and the Goods and Services Tax (GST), the BMI Research, a Fitch group company, in its latest report has predicted that the Indian economy is likely to grow at 7.3% in the current financial year (FY19) from 6.6% rate reported in the previous year (FY18) on account of robust activity from the construction, manufacturing, and services sectors.

The report further said that the demonetisation and GST disruptions have almost faded and increasing public infrastructure spending to improve the nation's transport and rural infrastructure is expected to drive the growth of construction sector. Besides, BMI noted that solid economic activity in the US and the UAE, would also support a further expansion of the export manufacturing sector.

Besides, the rating agency praised the various reform measures being taken by the government, saying that continued economic liberalisation will likely provide tailwinds for India's large services sector. It further said that ongoing improvements to domestic business conditions and regulatory amendments to encourage higher foreign investor participation has led to rise in foreign direct investment (FDI) and this will also boost the country’s economic growth.

The CNX Nifty is currently trading at 10683.80, down by 34.25 points or 0.32% after trading in a range of 10647.45 and 10720.60. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 3.36%, Sun Pharma up by 2.21%, ICICI Bank up by 1.95%, Hindalco up by 1.89% and Axis Bank up by 1.59%. On the flip side, HCL Tech down by 7.01%, UPL down by 3.14%, Kotak Mahindra Bank down by 1.92%, Indiabulls Housing Finance down by 1.73% and Tech Mahindra down by 1.55% were the top losers.

Asian markets were trading mostly in red; Hang Seng fell 410.51 points or 1.34% to 30,313.37, Jakarta Composite was down by 133.74 points or 2.22% to 5,878.50, Taiwan Weighted decreased 104.63 points or 0.99% to 10,514.18 and KOSPI Index lost 18.36 points or 0.73% to 2,487.25. On the flip side, FTSE Bursa Malaysia KLCI increased 2.06 points or 0.11% to 1,854.09 and Shanghai Composite surged 19.68 points or 0.64% to 3,100.86.

All European Markets were trading in red; Germany’s DAX was down by 33.2 points or 0.26% to 12,769.05, France’s CAC decreased 15.73 points or 0.28% to 5,513.49 and UK’s FTSE 100 lost 5.66 points or 0.08% to 7,537.54.