Indian bourses continue to trade under pressure

Indian bourses continued their weak trade in early afternoon session, on account of selling witnessed in front line blue chip stocks. The mood of the markets remained impacted by ICRA’s report highlighting that high quantum of non-performing asset (NPA) will restrict the overall bank credit growth to a moderate 7-8% in fiscal 2018-19, despite recapitalisation of public sector banks (PSBs) and private sector players upping their game with a 25 percent credit growth. It also said that India Inc will borrow more from cheaper sources abroad. Moreover, weak global cues and rupee depreciation against the US dollar, too weighed on the sentiments. The market participants overlooked report that activity in India’s dominant service sector accelerated in April thanks to a pick up in new business that encouraged firms to hire at the fastest pace in seven years. The Nikkei/IHS Markit Services Purchasing Managers’ Index (PMI) rose to a three-month high at 51.4 in April from March’s 50.3, holding above the 50-mark that separates growth from contraction for a second month. In scrip specific development, NCC was up by around three percent on receiving three new orders totaling to Rs 1276.93 crore (exclusive of GST) in the month of April, 2018.

Asian markets were trading mostly in red, with investors turning their focus to the US jobs data for April due later in the day. Investors also kept a close watch on US-China trade talks, even as a Commerce Department report showed that the US trade deficit with China widened in March from February. Back home, the BSE Sensex is currently trading at 34942.85, down by 160.29 points or 0.46% after trading in a range of 34891.09 and 35206.55. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.24%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Realty up by 0.52%, Consumer Durables up by 0.18%, Oil & Gas up by 0.10% and PSU up by 0.07%, while Telecom down by 0.94%, Healthcare down by 0.77%, IT down by 0.77%, Power down by 0.72% and Auto down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 2.38%, ONGC up by 1.49%, ICICI Bank up by 0.62%, Hindustan Unilever up by 0.52% and Power Grid up by 0.51%. On the flip side, Sun Pharma down by 2.23%, Bajaj Auto down by 1.88%, Infosys down by 1.85%, Yes Bank down by 1.55% and NTPC down by 1.43% were the top losers.

Meanwhile, China has exempted import tariffs on as many as 28 essential medicines, including cancer drugs from May 1. The move is expected to benefit India by exporting these pharmaceuticals to the neighbouring country. That apart, it will help reduce trade imbalance between China and India in the future.

Chinese Ambassador to India Luo Zhaohui has said that China would further improve business environment by halving time required to open a business. He also said that China’s door to the outside world will open wider and Indian businesses are welcome. He noted that India too has sought investments from China. Besides, he said that China has also agreed to set up an industry park in India to increase investments and bridge the trade deficit.

The development assumes importance as India repeatedly asked for greater market access for its goods and services, including IT, pharmaceuticals and agriculture, in the Chinese market to reduce the widening trade deficit. Besides, India's trade deficit with China stood at $36.73 billion during the first seven months of 2017-18 (April-October) compared to $51.11 billion in the financial year 2016-17.

The CNX Nifty is currently trading at 10633.45, down by 46.20 points or 0.43% after trading in a range of 10614.65 and 10700.45. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 2.42%, GAIL India up by 1.83%, ONGC up by 1.27%, Tech Mahindra up by 1.19% and HCL Tech. up by 1.11%. On the flip side, Sun Pharma down by 2.43%, Infosys down by 2.05%, Bajaj Auto down by 1.91%, Eicher Motors down by 1.74% and Yes Bank down by 1.64% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 269.48 points or 0.89% to 30,043.89, Jakarta Composite was down by 55.47 points or 0.95% to 5,803.26, KOSPI Index dipped 25.87 points or 1.04% to 2,461.38, Shanghai Composite shed 9.03 points or 0.29% to 3,091.83 and FTSE Bursa Malaysia KLCI dropped 6.36 points or 0.34% to 1,845.44.

On the flip side, Taiwan Weighted was up by 15.19 points or 0.14% to 10,529.37.