Bourses extend losses in early noon session

Extending their losses, Nifty and Sensex were trading in red with cut of around quarter a percent in the early noon session on the back of selling in PSU, Oil & Gas, Auto, Telecom and Power stocks. Sentiments on the street remained negative with Reserve Bank of India (RBI) data showing that India’s foreign exchange reserves fell by $3.03 billion to $410.070 billion as on June 15. Meanwhile, interim finance minister Piyush Goyal stated that creating infrastructure will need a whopping $4.5 trillion investments over the next decade and the cost of the money will be a challenge. Investors paid no heed towards Suresh Prabhu’s statement that India is making an attempt to resolve trade disputes with several international locations and is keen to create a new world trade order as it extends a hand of friendship to all.

Amongst the individual stocks, on the BSE, Tata Motors, ICICI Bank and NTPC were the top losers. On the NSE, selling by investors in Tata Motors, BPCL, ICICI Bank and Indian Oil Corporation were dragging the markets lower. Besides, banking sector was in limelight after Piyush Goyal stated that the banking system is now poised for a better future and support the credit needs of the economy having recognized the huge pile of NPAs hidden on bank books by ‘biting the bullet’.

On the global front, Asian counters were trading in red on escalating trade tensions between the United States and major economies. Back on the domestic turf, Idea Cellular stocks plunged after reports that the mega-merger deal of the company with Vodafone India may not meet the expected June 30 timeline as the telecom department is looking to raise a fresh demand of around Rs 4,700 crore. Besides, broader indices were also trading in red.

The BSE Sensex is currently trading at 35614.99, down by 74.61 points or 0.21% after trading in a range of 35584.24 and 35806.97. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.03%, while Small cap index down by 0.12%.

The top gaining sectoral indices on the BSE were IT up by 0.84%, TECK up by 0.59%, Healthcare up by 0.57%, Basic Materials up by 0.54% and Metal up by 0.47%, while PSU down by 1.21%, Oil & Gas down by 1.16%, Auto down by 1.07%, Telecom down by 0.90% and Power down by 0.87% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 3.70%, Infosys up by 1.86%, Sun Pharma up by 1.35%, Indusind Bank up by 0.66% and Hindustan Unilever up by 0.66%. On the flip side, Tata Motors - DVR down by 4.16%, Tata Motors down by 3.68%, ICICI Bank down by 2.89%, NTPC down by 1.59% and Hero MotoCorp down by 1.59% were the top losers.

Meanwhile, Union Minister Suresh Prabhu has clarified that India is making an attempt to resolve trade disputes with several international locations and is keen to create a new world trade order as it extends a hand of friendship to all. He expressed hopes that micro, small and medium enterprises (MSMEs) would create more economic opportunities and become the driver of a new India.  

The minister said “We want to make sure that India remains a friend of all countries of the world whether it is South East Asia, whether it is Far East including our good friend Japan, whether it is in the Middle East, whether it is Africa or Latin America, in each of these segments.” He also said “I have personally met almost all the ministers at different levels at different time, of course, Europe and the US.”

Further, Prabhu pointed out that MSMEs take wealth to different corners of the country, through equitable distribution of wealth, unlike large industries. He also said that they play a key role in exports, in promotion of industrialisation and innovation. He noted that there is need to promote SMEs, innovation and startups and that is why government is committed to do this.

The CNX Nifty is currently trading at 10795.65, down by 26.20 points or 0.24% after trading in a range of 10788.30 and 10831.05. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 3.94%, Ultratech Cement up by 2.21%, Infosys up by 1.92%, Bajaj Finance up by 1.76% and Hindalco up by 1.33%. On the flip side, Tata Motors down by 3.83%, BPCL down by 3.47%, ICICI Bank down by 2.88%, Indian Oil Corporation down by 2.62% and HPCL down by 2.23% were the top losers.

All the Asian markets were trading in red; Nikkei 225 declined 168.14 points or 0.75% to 22,348.69, Straits Times shed 26.78 points or 0.82% to 3,260.62, Hang Seng dropped 287.07 points or 0.99% to 29,051.63, Taiwan Weighted slipped by 112.82 points or 1.05% to 10,786.46, Jakarta Composite lost 7.28 points or 0.13% to 5,814.53, Shanghai Composite fell 12.67 points or 0.44% to 2,877.09 and KOSPI was down by 2.15 points or 0.09% to 2,355.07.