Markets off day’s low

Key Indian equity benchmarks pared some of their losses in late afternoon session to come off their intraday low points, on the back of firm opening in European markets. Gains led by industry majors like Hindustan Unilever, Tata Motors - DVR and Yes Bank coupled with heavy buying at Realty, FMCG and IT counters, helped the indices to trim losses. The markets also took support with President Ram Nath Kovind’s statement that the 12 Champion services sectors hold a huge potential to boost economic growth, create employment and for drawing global attention and investment. Besides, he noted that this also aims to optimise India’s skills and knowledge resources. Some relief also came with British Deputy High Commissioner, Bharat Joshi’s statement that the United Kingdom was pushing for more investments in India, connecting entrepreneurs from both the countries. However, the trade remained weak, amid reports that the total investment via participatory notes (P-notes) into Indian capital markets plunged to nearly 9-year low of Rs 1 lakh crore in April amid stringent norms put in place by the regulator Sebi to check misuse of these instruments. According to the SEBI data, the total value of P-note investments in Indian markets - equity, debt, and derivatives - slumped to a low of 1,00,245 at April-end from Rs 1,06,403 crore at the end of the preceding month. Further, widening trade deficit also kept the domestic sentiments down. Trade deficit widened slightly to $13.72 billion in April from $13.25 billion a year ago.

On the global front, European markets were trading in green, as investors monitored surging interest rates in the bond markets. However, Asian markets were trading in red. Back home, in scrip specific development, Vivimed Labs was trading higher after Vivimed Labs Spain S.L, the parent of UQUIFA S.A, signed definitive agreements to facilitate the acquisition of SONEAS, a Budapest (Hungary) head quartered CDMO company, focussed on the Innovator Pharmaceutical and Fine Chemical sectors.

The BSE Sensex is currently trading at 35434.98, down by 108.96 points or 0.31% after trading in a range of 35241.63 and 35543.89. There were 12 stocks advancing against 18 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.19%, while Small cap index was up by 0.04%.

The top gaining sectoral indices on the BSE were Realty up by 1.71%, FMCG up by 1.45%, IT up by 0.21%, TECK up by 0.18% and Telecom up by 0.15%, while Energy down by 1.39%, Oil & Gas down by 1.35%, PSU down by 1.03%, Bankex down by 1.01% and Basic Materials down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.16%, Tata Motors - DVR up by 1.68%, Yes Bank up by 1.66%, Wipro up by 1.05% and ITC up by 1.01%. On the flip side, ICICI Bank down by 2.71%, Hero MotoCorp down by 2.13%, Reliance Industries down by 1.66%, SBI down by 1.59% and Adani Ports & SEZ down by 1.37% were the top losers.

Meanwhile, terming the government’s 12 Champion Services scheme as bold new step, President Ram Nath Kovind has said that the 12 services sectors hold a huge potential to boost economic growth, create employment and for drawing global attention and investment. Besides, he noted that this also aims to optimise India’s skills and knowledge resources.

Kovind highlighted the country’s aim to become even more of a provider of services to the world and also underlined the natural advantages that the country has in the sector with its young population, large talent pool and comfort with technology. He further said that India expects to double the size of its GDP to $5 trillion by 2025, and out of this, $3 trillion share would be of services sector.

Pointing to the government’s programmes like Start-up India and the Mudra Yojana, President said that these have seeded a culture of entrepreneurship, largely in services and further expressed confident that some of these start-ups will grow into giants in the years and decades to come.

The CNX Nifty is currently trading at 10762.50, down by 39.35 points or 0.36% after trading in a range of 10699.70 and 10790.45. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 4.19%, Bharti Infratel up by 2.88%, Lupin up by 1.96%, Yes Bank up by 1.69% and ITC up by 1.17%. On the flip side, ICICI Bank down by 2.87%, Ultratech Cement down by 2.76%, Cipla down by 2.41%, GAIL India down by 2.40% and Hero MotoCorp down by 2.00% were the top losers.

Asian markets were trading in red; Nikkei 225 decreased 100.79 points or 0.44% to 22,717.23, Hang Seng decreased 41.83 points or 0.13% to 31,110.20, Shanghai Composite decreased 22.55 points or 0.71% to 3,169.57 and Jakarta Composite decreased 7.09 points or 0.12% to 5,831.02. On the flip side, KOSPI Index increased 1.28 points or 0.05% to 2,459.82, FTSE Bursa Malaysia KLCI increased 12.19 points or 0.66% to 1,860.39 and Taiwan Weighted increased 22.84 points or 0.21% to 10,897.57.

All European markets were trading in green; France’s CAC increased 6.96 points or 0.13% to 5,560.12, UK’s FTSE 100 increased 21.5 points or 0.28% to 7,744.48 and Germany’s DAX increased 26.74 points or 0.21% to 12,996.78.