Sensex, Nifty continue sluggish trade

Indian equity benchmarks continued their sluggish trade in late afternoon session, with Sensex losing more than 100 points, amid mixed cues from European markets.  In line with the larger peers, the broader markets too traded lacklustre in noon deals with losses of around 0.45% each, while Metal declined the most among all other sectoral indices, followed by PSU and Telecom. Domestic sentiments got hit, as India's trade deficit widened to four month high of $14.62 billion in May from $13.84 billion in May 2017, as imports surged 14.85% to $43.48 billion. Oil imports were up 49.46% to $11.5 billion on back of surge in international crude prices. Anxiety remained on the street, 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. Besides, losses led by major industry losers such as Axis Bank, Yes Bank and ONGC, also weighed on the domestic sentiments.

On the global front, European markets were trading mixed, after media reports suggested the Trump administration has approved a plan to impose punishing tariffs on tens of billions of dollars of Chinese goods. The US Treasury is expected to unveil the details later in the day. Expectations remain high that China would retaliate with tariffs of its own if the US goes ahead with its plans. Besides, European Central Bank's dovish message battered the euro while oil moved in a narrow range ahead of next week's OPEC meeting. Asian markets were trading in red. Back home, in scrip specific development, Valiant Communications traded jubilantly after receiving the orders/contracts to supply and commissioning of its communication solutions from the domestic entities, namely, Transmission Corporation of Andhra Pradesh (APTRANSCO), Kerala State Electricity Board (KSEB) and Tejas Networks.

The BSE Sensex is currently trading at 35472.84, down by 126.98 points or 0.36% after trading in a range of 35419.68 and 35675.20. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.45%, while Small cap index was down by 0.47%.

The few gaining sectoral indices on the BSE were Healthcare up by 2.16%, IT up by 0.39% and TECK up by 0.14%, while Metal down by 1.71%, PSU down by 1.57%, Telecom down by 1.46%, Power down by 1.21% and Capital Goods down by 1.16% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 4.73%, Sun Pharma up by 2.07%, TCS up by 0.70%, Reliance Industries up by 0.65% and Infosys up by 0.61%. On the flip side, Axis Bank down by 2.24%, Yes Bank down by 2.11%, ONGC down by 1.87%, Coal India down by 1.68% and SBI down by 1.52% were the top losers.

Meanwhile, raising concerns over mounting oil prices which are now at the highest since the peak of 2014, Indian Oil Minister Dharmendra Pradhan has asked the Organisation of Petroleum Exporting Countries (OPEC) to move to responsible pricing, one that balances the interests of both the producer and consumer.

Oil Minister also expressed worries over negative impact of higher oil prices on consumers across the world, particularly in India and added that globally prices have risen beyond the threshold which can be sustained by the world. Besides, he highlighted that market fundamentals do not support such high prices.

Further, Pradhan also highlighted the issue of discriminatory pricing through measures such as Asian Premium on oil being charged by OPEC producers and urged OPEC to move to transparent and flexible markets for both oil and gas.

India has a strong engagement with the OPEC countries and top 8 suppliers of crude oil to India are OPEC Member countries. The block accounted for about 83% of India’s total crude oil imports, 98% of our LPG imports and 74% of our LNG imports during the last financial year.

The CNX Nifty is currently trading at 10769.15, down by 38.90 points or 0.36% after trading in a range of 10755.40 and 10834.00. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 4.67%, Cipla up by 3.01%, UPL up by 2.56%, Sun Pharma up by 2.06% and Lupin up by 1.67%. On the flip side, Hindalco down by 3.49%, Axis Bank down by 2.66%, Yes Bank down by 2.19%, ONGC down by 2.02% and Indian Oil Corporation down by 1.72% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 130.68 points or 0.43% to 30,309.49, Shanghai Composite decreased 22.26 points or 0.73% to 3,021.90 and KOSPI Index decreased 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 increased 113.14 points or 0.5% to 22,851.75.

European markets were trading mixed; Germany’s DAX increased 14.77 points or 0.11% to 13,121.87 and France’s CAC increased 14.78 points or 0.27% to 5,543.24. On the flip side, UK’s FTSE 100 decreased 16.25 points or 0.21% to 7,749.54.