Bourses trade in red terrain in noon deals

Key benchmark indices erased their gains and entered into red territory in afternoon session, on account of selling in frontline blue chip counters. The sentiments turned pessimistic with private report that the record low equity risk premium and the gap between earnings yield and the bond yields are making it cautious on the Indian equity market. Some concern also came with a report that Private equity (PE) investments saw 50% decline in value terms in May at $1,180 million amid fall in big-ticket deals and cautious investor approach.  However, losses were limited as some support came with India’s Oil Minister Dharmendra Pradhan conveying India’s concerns when he met ambassadors of OPEC countries in India over high international oil prices. In the currency front, the rupee plunged by 37 paise to hit a three-week low of 68.00 against the US dollar in early trade following strong demand for the greenback amid sustained foreign capital outflows. In scrip specific development, Alembic Pharmaceuticals surged by around three percent on receiving EIR from USFDA for the inspection carried out by them at Formulation Facility at Panelav during the period from 12th March, 2018 to 20th March, 2018.

On the global front, Asian markets were trading mostly in red, amid worries about trade wars as the U.S. is expected to unveil tariffs of about $50 billion in Chinese imports, while Beijing has said it will retaliate if the U.S. imposes tariffs. Back home, the BSE Sensex is currently trading at 35555.28, down by 44.54 points or 0.13% after trading in a range of 35522.63 and 35675.20. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.08%, while Small cap index was down by 0.05%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.96%, IT up by 0.56%, TECK up by 0.32% and Energy up by 0.08%, while Telecom down by 1.09%, Power down by 1.06%, PSU down by 0.97%, Capital Goods down by 0.84% and Utilities down by 0.81% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 4.48%, Sun Pharma up by 2.14%, Infosys up by 1.02%, Reliance Industries up by 0.93% and ICICI Bank up by 0.32%. On the flip side, NTPC down by 1.61%, Yes Bank down by 1.29%, Coal India down by 1.15%, Larsen & Toubro down by 1.14% and Asian Paints down by 1.04% were the top losers.

Meanwhile, a joint study carried out by industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst & Young LLP (EY) has stated that India’s overall electricity demand from the mass adoption of electric vehicles (EVs) may reach to 69.6 terawatt hours (TWh) by the year 2030. This will help power utilities to earn extra revenue of $11 billion. It noted that increase in adoption of EVs will be instrumental in transforming India’s power sector and reduce emissions by 40-50%, helping the country in achieving carbon emission reduction targets. However, it said that even if the grid continues to be coal-heavy, emissions are likely to reduce by 20-30%.

The study highlighted rapid transformation underway in the country’s power and utilities sector via reducing the dependence on imported coal, rising energy independence with renewables, reducing plant load factors and national grid integration. Besides, it suggested that a national regulated rate that can be applicable to all charging stations across India, observing that the government will have to quickly facilitate standardisation of charging infrastructure and incentivise R&D for advanced charging technologies.

The ASSOCHAM-EY study expected that the government to take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs. It stated that while success of the country’s EV mission depends upon development and proliferation of domestic manufacturing ecosystem, absence of an EV supply chain in the country demands an urgent investment in research and development and local manufacturing capabilities. It added that clear policy guidelines are essential for EV market to take-off, given the huge capital investments involved. 

The CNX Nifty is currently trading at 10800.35, down by 7.70 points or 0.07% after trading in a range of 10788.90 and 10834.00. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 4.48%, Cipla up by 2.87%, UPL up by 2.64%, Lupin up by 2.29% and Sun Pharma up by 1.97%. On the flip side, HPCL down by 1.76%, NTPC down by 1.74%, Indian Oil Corp. down by 1.72%, Yes Bank down by 1.38% and Bharti Infratel down by 1.15% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 50.41 points or 0.17% to 30,389.76, Shanghai Composite shed 26.03 points or 0.85% to 3,018.13 and KOSPI Index was down by 19.44 points or 0.8% to 2,404.04.

On the flip side, Taiwan Weighted increased 73.49 points or 0.67% to 11,087.47 and Nikkei 225 rose 113.14 points or 0.5% to 22,851.75.