Markets continue to trade lower in early noon deals

Nifty and Sensex continued their weak trade in the early noon deals amid weak cues from Asian markets. Domestic sentiments were hit as the rupee slumped to fresh 16-month low against the dollar. Sentiments also remained downbeat on report that Foreign Institutional Investors (FIIs) sold shares worth Rs 1651.63 crore on May 23, 2018, as per provisional data from the stock exchanges. Besides, selling in oil & gas, metal and energy stocks dragged the Nifty and Sensex lower. Oil & gas stocks were trading lower due to rising crude oil prices which surged near $80 per barrel. International crude prices are expected to increase further over the next six months. Domestic fuel prices track global oil rates, which have risen on expectations of lower supplies from Iran.

On the global front, Asian markets were trading mostly in red as investors were cautious after US President Donald Trump tempered optimism over progress made so far in trade talks between the world’s two largest economies.

Back on the domestic turf, investors took note of a private report stating that India does not agree with the American assessment that Iran has violated the nuclear deal from which the US has now withdrawn. Trump also announced that the US sanctions against Iran would kick in, as a result of which any country or companies having trading relationship with Iran would be subject to secondary sanctions. As of now, India is the second largest buyer of Iranian oil after China. In scrip specific development, HPCL slipped on reporting 4% fall in Q4 net profit, but Cipla gained after it posted consolidated net profit of Rs 178.61 crore in Q4.

The BSE Sensex is currently trading at 34569.27, down by 81.97 points or 0.24% after trading in a range of 34520.65 and 34667.78. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.05%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were IT up by 0.69%, Power up by 0.58%, Industrials up by 0.52%, Capital Goods up by 0.39% and TECK up by 0.33%, while Oil & Gas down by 2.73%, Metal down by 2.11%, Energy down by 1.70%, Basic Materials down by 0.85% and Realty down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 4.66%, Tata Motors up by 2.06%, NTPC up by 1.52%, ICICI Bank up by 0.91% and Sun Pharma Inds. up by 0.83%. On the flip side, Tata Steel down by 3.79%, ONGC down by 2.39%, Dr. Reddys Lab down by 2.18%, Indusind Bank down by 1.70% and Hero MotoCorp down by 1.51% were the top losers.

Meanwhile, following furore over hike in petrol and diesel prices in India, Union minister of state for finance Shiv Pratap Shukla has said that the rise in prices is a result of global crude oil price increase and US sanctions on Iran. Therefore, he highlighted that the government was finding a way out to bring down the prices.

Shukla noted that the government has not failed in controlling the prices of petrol and diesel but it’s due to steep rise in crude prices in international market and breaking of US-Iran pact, which has affected not only India but other countries as well. Besides, he said that Union petroleum minister Dharmendra Pradhan has also suggested bringing petrol under the ambit of Goods and Services Tax (GST) to control prices but imposing the GST will not be possible until a general consensus is drawn by GST council.

Talking on the protest and demonstration on the fuel price issue by the Opposition, the Minister has said that the government is putting efforts to balance and lower the price and they can’t say anything on Opposition protests as it is their work.

The CNX Nifty is currently trading at 10493.90, down by 42.80 points or 0.41% after trading in a range of 10480.75 and 10533.55. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were SBI up by 4.73%, Cipla up by 2.74%, Tech Mahindra up by 2.56%, Tata Motors up by 2.13% and UPL up by 1.56%. On the flip side, HPCL down by 6.72%, BPCL down by 6.60%, Indian Oil Corp. down by 4.74%, Vedanta down by 4.74% and Tata Steel down by 3.66% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 342.29 points or 1.1% to 30,892.06, Nikkei 225 declined 259.07 points or 1.13% to 22,701.27, Taiwan Weighted fell 52.55 points or 0.48% to 10,886.18, Shanghai Composite was down 38.14 points or 1.19% to 3,176.21 and FTSE Bursa Malaysia KLCI slipped 28.67 points or 1.55% to 1,816.36.

On the flip side, KOSPI Index increased 9.35 points or 0.38% to 2,474.92 and Jakarta Composite was up 79.81 points or 1.39% to 5,830.93.