Sensex, Nifty off day’s high

Indian equity benchmarks trimmed some of their gains in late afternoon session to come off their intraday high points, despite firm opening in European markets. Anxiety spread among the investors, with the World Bank’s latest report stating that the India may see 2.8% fall in GDP by 2050, amid rising temperatures and changing monsoon rainfall patterns from climate change. The report further noted that climate change could also depress the living standards of nearly half of the country’s population by 2050. Losses led by major industry leaders such as Indusind Bank and Mahindra & Mahindra, also trimmed some of the gains on the street. Some concerns also came with Finance Minister Piyush Goyal’s statement that strong action would be taken against illicit Swiss deposits. He further noted that India would start getting details of bank accounts from Switzerland under a bilateral treaty. However, the markets remained in green terrain, on the back of heavy buying in Metal, Capital Goods and Utilities stocks along with firm broader markets. Domestic sentiments were taking support with a private report stating that the second quarter of calendar year 2018 saw the biggest ever private equity (PE) investments in India. The PE firms have invested a record $8.2 billion during the quarter ended June 2018, an increase of 60% compared with $5.1 billion in the same period last year.

On the global front, European markets were trading in green, after China eased restrictions on foreign investments in various sectors and the EU summit reached a deal on immigration. In economic releases, UK consumer sentiment weakened in June largely on weak economic outlook. As per survey data from market research group GfK, the consumer confidence index fell to (-) 9 from (-) 7 in May. Asian markets were also trading in green. Back home, in scrip specific development, Wipro traded higher after the company completed the divestment of its data centre business in Germany and the UK on June 28, 2018, along with the company’s Data Centre and Cloud Services, for a consideration of $399 million.

The BSE Sensex is currently trading at 35357.96, up by 320.32 points or 0.91% after trading in a range of 35099.65 and 35414.80. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.52%, while Small cap index was up by 1.58%.

The top gaining sectoral indices on the BSE were Metal up by 2.70%, Capital Goods up by 2.47%, Utilities up by 2.35%, Oil & Gas up by 2.24% and Consumer Durables up by 2.15%, while there were no losing  sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Auto up by 3.93%, Tata Steel up by 3.60%, Yes Bank up by 3.10%, ONGC up by 2.92% and Reliance Industries up by 2.70%. On the flip side, Indusind Bank down by 1.50%, Mahindra & Mahindra down by 1.07%, HDFC Bank down by 1.07%, Hero MotoCorp down by 0.82% and Sun Pharma down by 0.23% were the top losers.

Meanwhile, amid rising temperatures and changing monsoon rainfall patterns from climate change, the World Bank in its latest report has expressed worries that the India may see 2.8% fall in GDP by 2050. The report further noted that climate change could also depress the living standards of nearly half of the country’s population by 2050.

According to the report, even if preventive measures are taken along the lines of those recommended by the Paris climate change agreement of 2015, India may see a rise of 1-2 degrees celsius in average annual temperatures by 2050 and the expected decline in living standards of the population can be attributed to a fall in agricultural yield, lower labour productivity or related health impacts.

World Bank found India’s central, northern and north-western states most vulnerable to changes in average temperature and precipitation. Besides, Chhattisgarh and Madhya Pradesh are predicted to be the top two climate hotspot states by 2050 and are expected to experience a decline of more than 9% in their living standards, followed by Rajasthan, Uttar Pradesh and Maharashtra.

Further, in order to offset the negative economic impact, the report suggested India to work on enhancing educational attainment, reducing water stress, and improving job opportunities in the non-agricultural sectors. The report noted that a 30% improvement on these measures could halt the decline in living standards by almost 1% from 2.8% to 1.9%.On the Asia front, World Bank warned that these weather changes will result in lower per capita consumption levels that could further increase poverty and inequality in one of the poorest regions of the world, South Asia.

The CNX Nifty is currently trading at 10691.50, up by 102.40 points or 0.97% after trading in a range of 10612.35 and 10709.00. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 6.07%, Hindalco up by 4.66%, Bajaj Auto up by 3.84%, Tata Steel up by 3.61% and ONGC up by 3.58%. On the flip side, Dr. Reddy’s Lab down by 2.38%, Indusind Bank down by 1.61%, HPCL down by 1.47%, Tech Mahindra down by 1.31% and Mahindra & Mahindra down by 1.17% were the top losers.

Asian markets are trading in green; Nikkei 225 rose 34.12 points or 0.15% to 22,304.51, Straits Times gained 19.91 points or 0.61% to 3,277.48, Hang Seng surged 457.79 points or 1.58% to 28,955.11, Taiwan Weighted jumped 182.63 points or 1.69% to 10,836.91, KOSPI advanced 11.89 points or 0.51% to 2,326.13, Jakarta Composite added 102.46 points or 1.78% to 5,769.78 and Shanghai Composite was up by 61.41 points or 2.16% to 2,848.31.

All European markets were trading in green; UK’s FTSE 100 was up by 64.01 points or 0.83% to 7,679.64, France’s CAC increased 70.50 points or 1.32% to 5,346.14 and Germany’s DAX gained by 187.74 points or 1.52% to 12,364.97.