Markets continue flat trade in early noon session

Indian equity benchmarks continued their flat trade in early afternoon session, as investors remained on sidelines ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) members’ three-day meeting beginning from June 4. The RBI is expected to take a wait-and-watch approach despite the higher GDP growth figures released last week. The sentiments remained in lackluster mood with the report that collections from the Goods and Services Tax in May fell to Rs 94,016 crore, from the Rs 1.03 lakh crore collected in April. Some concern also came with a report stating that foreign institutional investors (FIIs) offloaded shares worth a net Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, owing to heavy increase in global crude prices. However, traders found some support with Federation of Indian Chambers of Commerce and Industry (FICCI) praising India’s economic growth, which was recorded at 7.7% for Q4 (January-March) of fiscal year 2017-18, the fastest in seven quarters. It also noted that India’s growth scenario is set to improve further going ahead. In scrip specific development, Infosys was up by over a percent on extending its alliance with Microsoft to accelerate the digital transformation of enterprise clients.

On the global front, Asian market were trading mostly in green, as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower. Back home, the BSE Sensex is currently trading at 35234.20, up by 6.94 points or 0.02% after trading in a range of 35089.66 and 35555.59. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.18%, while Small cap index was down by 1.13%.

The top gaining sectoral indices on the BSE were Energy up by 0.55%, Healthcare up by 0.54%, TECK up by 0.26%, Metal up by 0.22% and IT up by 0.20%, while Consumer Durables down by 1.47%, Realty down by 1.42%, Power down by 0.84%, Utilities down by 0.71% and PSU down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 3.74%, Yes Bank up by 1.93%, Mahindra & Mahindra up by 1.36%, Tata Motors up by 1.18% and Tata Steel up by 1.13%. On the flip side, Asian Paints down by 1.70%, Adani Ports & SEZ down by 1.30%, HDFC Bank down by 1.22%, Hindustan Unilever down by 1.08% and Power Grid down by 0.85% were the top losers.

Meanwhile, in order enable farmers to access a large market profitability, the government has taken a major policy initiative. The government has done away with the licensing requirement for plying of foreign flag vessels by foreign players on the coastal line of India for four kind of cargos - agriculture, horticulture, fisheries and animal husbandry.  Moreover, the govt has allowed chartering of foreign vessel by Indian citizens, Indian incorporated entities and Indian registered societies for this. The move is also aimed at promoting processing of seafood at Indian hubs under Sagaramala initiative rather than processing of Indian seafood in Singapore before further exports to countries like Japan.

Shipping Minister Nitin Gadkari said that the main objective of the govt’s reform in the maritime sector is to see that farmers income increases and through lower logistic charges like transportation through sea would reduce cost. The minister further said that the initiative will help in govt’s intent of promoting a mind-set shift from facilitating and protecting farmers, towards one that expands the market ecosystem.

The relaxation in licensing requirement has been given under section 407 of the Merchant Shipping Act 1958 and accordingly vessels with at least 50% of total cargo onboard constituted by these commodities are not required to obtain a license from the Director General of Shipping for coastal trade.

Recently, the government had also done away with licensing requirement for ships chartered by Indian citizens or companies for transportation of EXIM containers for transshipment purposes and to promote entrepreneurship. The move was aimed at arresting diversion of Indian container cargo to transshipment hubs at foreign ports that have been swelled to 33%, besides creating employment.

The CNX Nifty is currently trading at 10688.70, down by 7.50 points or 0.07% after trading in a range of 10648.20 and 10770.30. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 3.68%, Yes Bank up by 1.78%, Lupin up by 1.64%, Mahindra & Mahindra up by 1.43% and Tata Motors up by 1.10%. On the flip side, GAIL India down by 2.26%, Asian Paints down by 1.49%, Titan Co down by 1.40%, Adani Ports & SEZ down by 1.39% and Indiabulls Housing Finance down by 1.38% were the top losers.

Asian market were trading mostly in green, KOSPI Index increased 8.8 points or 0.36% to 2,447.76, Shanghai Composite surged 16.61 points or 0.54% to 3,091.74, Jakarta Composite was up by 46.62 points or 0.78% to 6,030.20, Taiwan Weighted added 160.42 points or 1.47% to 11,109.50, Nikkei 225 rose 304.59 points or 1.37% to 22,475.94 and Hang Seng increased 433.52 points or 1.42% to 30,926.43.

On the flip side, FTSE Bursa Malaysia KLCI was down by 0.16 points or 0.01% to 1,756.22.