Markets off day’s high

Trimming some of their early gains, Indian equity benchmarks came off their intraday high points in late afternoon session, despite firm cues from European markets. Domestic sentiments got cautious with Union Minister Nitin Gadkari’s statement that any cut in petrol, diesel prices will take money away from the government’s social welfare schemes. He also added that the increase in oil prices is an unavoidable, economic situation, as India is now linked to the global economy. Some anxiety also came with a private report stating that foreign portfolio investors (FPIs) have dumped Indian bonds worth more than $4.5 billion over the past month or so. The sales in the equity market, at close to $1.63 billion over the same time, have been far smaller. Besides, sluggish broader indices along with heavy selling pressure at Oil & Gas, Auto and Industrials counters also weighed on the sentiments.

However, the indices managed to hold their heads in green terrain, as traders got some relief with Oil Minister Dharmendra Pradhan’s statement that India is trying to get a resolution soon on tackling rising fuel prices, and the government is looking at both short-term and long-term solutions. Markets remained upbeat, as India has been ranked 44th in the year 2018, up one notch from last year, in terms of competitiveness in the annual rankings compiled by International Institute for Management Development (IMD) which saw the United States (US) topping the list. Meanwhile, engineering exporters’ body, EEPC India said that India can make its export promotion schemes WTO- compliant and make the country's exports competitive by allowing the exchange rate to reflect the real value of the rupee , that has only recently shown some parity, helping the exporting community.

On the sectoral front, banking stocks were trading higher, supported by RBI latest data report that banks’ credit grew by 12.64% year-on-year to Rs 85,51,099 crore in the fortnight ended May 11, 2018. In the similar fortnight ended May 12, 2017, banks’ advances stood at Rs 75,90,941 crore. On the global front, European markets were trading in green, as investors monitored corporate earnings and reacted to fresh setbacks in trade talks between the world's two largest economies. However, Asian markets were trading in red. Back home, in scrip specific development, Shipping Corporation of India jumped higher on reporting around 3-fold jump in its net profit at Rs 254.47 crore for the quarter ended March 31, 2018 as compared to Rs 92.92 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 34515.20, up by 170.29 points or 0.50% after trading in a range of 34367.83 and 34692.36. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.64%, while Small cap index was down by 0.34%.

The top gaining sectoral indices on the BSE were IT up by 2.30%, TECK up by 2.06%, Telecom up by 1.20%, Healthcare up by 0.82% and Bankex up by 0.68%, while Oil & Gas down by 2.39%, Auto down by 1.70%, Industrials down by 1.04%, Realty down by 0.89% and Energy down by 0.77% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.97%, TCS up by 2.83%, Bharti Airtel up by 2.58%, Sun Pharma up by 2.42% and Axis Bank up by 1.83%. On the flip side, ONGC down by 8.23%, Tata Motors down by 7.29%, Tata Motors - DVR down by 5.25%, Yes Bank down by 1.71% and Bajaj Auto down by 1.51% were the top losers.

Meanwhile, amid calls for relief from rising fuel prices, Union Minister Nitin Gadkari has said that any cut in petrol, diesel prices will take money away from the government’s social welfare schemes. He also added that the increase in oil prices is an unavoidable, economic situation, as India is now linked to the global economy.

Gadkari explained that to sell the fuel at cheap prices, the country will have to buy it at higher prices and subsidise it here and if it happens, all the money from social security schemes will vanish, as the government has limited amount of money. He noted that to subsidise the oil prices, the government may have to take money from the various scheme like irrigation schemes, free LPG for villages scheme, rural electrification project, Mudra scheme and other Central schemes and due to this step, these schemes will be badly hit.

The Union Minister also cleared that the decision of cut in taxes levied on petroleum products rests with the Finance Minister. He highlighted the government’s efforts on finding out a long-term and structured solution to this issue and on bringing substitute, cost-effective and pollution-free alternatives.

The CNX Nifty is currently trading at 10469.00, up by 38.65 points or 0.37% after trading in a range of 10419.80 and 10519.05. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.95%, TCS up by 2.89%, Bharti Airtel up by 2.75%, Sun Pharma up by 2.55% and Tech Mahindra up by 1.86%. On the flip side, ONGC down by 8.01%, Tata Motors down by 7.14%, Indiabulls Housing Finance down by 3.35%, Grasim Industries down by 2.96% and Vedanta down by 2.14% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 252.73 points or 1.11% to 22,437.01, FTSE Bursa Malaysia KLCI decreased 25.11 points or 1.39% to 1,779.14, Shanghai Composite decreased 14.31 points or 0.45% to 3,154.65 and KOSPI Index decreased 5.9 points or 0.24% to 2,466.01. On the flip side, Taiwan Weighted increased 50.75 points or 0.47% to 10,936.93, Hang Seng increased 94.77 points or 0.31% to 30,760.41 and Jakarta Composite increased 156.94 points or 2.71% to 5,948.94.

All European markets were trading in green; UK’s FTSE 100 increased 7.61 points or 0.1% to 7,796.05, Germany’s DAX increased 16.15 points or 0.12% to 12,992.99 and France’s CAC increased 24.19 points or 0.43% to 5,590.04.