Key indices extend losses to trade near intraday lows

Indian equity benchmarks extended losses to trade near intraday low levels in late afternoon deals, as traders remained concerned ahead of services sector data for May slated to be released on June 5, while the Reserve Bank’s rate decision will be announced on June 6. The RBI is expected to take a wait-and-watch approach despite the higher GDP growth figures released last week. Sentiments also remained dampened on reports that foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices.

On the global front, European stocks were trading higher as optimism for the world's largest economy helped investors put concerns over protectionism to one side. Asian stocks were trading higher, tracking gains seen on Wall Street June 1, 2018. Back home, the market breadth, indicating the overall health of the market, was weak. On BSE, 515 shares rose and 2133 shares fell. A total of 157 shares were unchanged. On the sectoral front, most auto stocks were on a sticky road during afternoon trade, weighing on the auto index, despite reporting better-than-expected May sales numbers.

The BSE Sensex is currently trading at 35041.63, down by 185.63 points or 0.53% after trading in a range of 35006.03 and 35555.59. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.86%, while Small cap index was down by 2.01%.

The top gaining sectoral indices on the BSE were Energy up by 0.35%, Metal up by 0.21%, TECK up by 0.07% and IT was up by 0.03%, while Realty down by 2.83%, Power down by 2.30%, Consumer Durables down by 1.68%, Utilities down by 1.65% and Telecom was down by 1.44% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 2.66%, Mahindra & Mahindra up by 1.44%, Tata Steel up by 1.40%, Infosys up by 1.12% and Reliance Industries up by 1.02%. On the flip side, Power Grid Corporation down by 2.55%, HDFC Bank down by 2.22%, Bharti Airtel down by 2.05%, Asian Paints down by 1.99% and Tata Motors - DVR down by 1.73% were the top losers.

Meanwhile, in a big relief, the country’s Fiscal Deficit, the difference between total revenue and expenditure, has improved in the first month of the current financial year 2018-19, on the back of higher revenue and lower expenditure. As per the latest data released by the controller-general of accounts (CGA), April’s fiscal deficit was at 24.3 per cent of the budget estimates, as against 37.6 per cent for the same period of the last fiscal year.

The report further showed that the revenue receipts received during April 2018 to the government was worth Rs 71,450 crore (3.93 per cent of corresponding budget estimates (BE) for 2018-19 for total receipts). Out of this amount, Rs 57,533 crore from tax revenue, while Rs 13,124 crore from non-tax Revenue and Rs 793 crore of non-debt capital receipts. Non Debt Capital Receipts consists of Recovery of Loans (Rs 359 crore) and PSU disinvestment (Rs 434 crore).

Further, the government’s spending stood at Rs 2,23,417 crore (9.15 per cent of corresponding BE 2018-19) in the first month of the current financial year. Out of this, over Rs 1.76 lakh crore is on Revenue Account and Rs 46,703 crore is on Capital Account.

The CNX Nifty is currently trading at 10628.10, down by 68.10 points or 0.64% after trading in a range of 10624.40 and 10770.30. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 2.38%, Mahindra & Mahindra up by 1.28%, Tata Steel up by 1.28%, Grasim Industries up by 1.01% and Reliance Industries up by 0.98%. On the flip side, Indiabulls Housing Finance down by 3.73%, Bharti Airtel down by 2.62%, HDFC Bank down by 2.50%, GAIL India down by 2.26% and Power Grid Corporation down by 2.26% were the top losers.

Asian markets are trading mostly in green KOSPI Index rose 8.8 points or 0.36% to 2,447.76, Shanghai Composite gained 16.05 points or 0.52% to 3,091.19, Jakarta Composite increased 45.5 points or 0.76% to 6,029.09, Taiwan Weighted soared 160.42 points or 1.47% to 11,109.50, Nikkei 225 surged 304.59 points or 1.37% to 22,475.94 and Hang Seng was up by 505.07 points or 1.66% to 30,997.98. On the flip side, FTSE Bursa Malaysia KLCI was down by 1.21 points or 0.07% to 1,755.17.

European markets are trading in green; France’s CAC increased 23.15 points or 0.42% to 5,488.68, Germany’s DAX advanced 32.1 points or 0.25% to 12,756.37 and UK’s FTSE 100 was up by 55.47 points or 0.72% to 7,757.24.