Bourses trim losses to come off day’s low

Key Indian benchmarks trimmed some of their losses in late afternoon session to come off their intraday low points, despite weak opening in European markets. Following larger peers, the boarder markets too pared their losses in late noon deals, amid buying witnessed at IT and TECK counters. Gains led by major industry leaders such as Asian Paints, Vedanta and Bajaj Auto, were helping the key indices to recover from losses.  Positive economic data including manufacturing PMI and GST revenue collection, also aided domestic sentiments. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance -climbed from 51.2 in the previous month to 53.1 in June 2018, mainly led by the rise in new orders and output, while revenue collection under the Goods and Services Tax (GST) during the month of June 2018 increased to Rs 95,610 crore, as compared to previous month’s revenue of Rs 94,016 crore.

However, the trade remained in negative terrain, with heavy selling pressure seen in Telecom, Power and Utilities sectors. NTPC remained top loser on the BSE with the losses of 3.79%. The street remained worried with Reserve Bank of India’s latest report stating that India's foreign exchange reserves declined by $2.25 billion to $407.81 billion in the week to June 22 on account of fall in foreign currency assets. Anxiety also remained among traders with a report that India’s external debt surged 12.24% to $529 billion during January-March quarter (Q4FY18) as compared to $471.3 billion reported for the corresponding period of 2017, due to the increase in commercial borrowings, short-term debt and non-resident Indian (NRI) deposits. On the sectoral front, metals stocks were trading lower, despite Union Steel Minister Chaudhary Birender Singh’s statement that the US’ levy of heavy tariffs on imported steel and aluminum would not have any major impact on steel production in India as steel export to US was only 3.3% of total exports.

On the global front, European markets were trading in red, amid renewed political uncertainty in Germany over the issue of migration. A resolution to Germany's government crisis is proving to be elusive after interior minister Horst Seehofer offered to resign both his office and his position as head of the hardline conservative Bavarian CSU party. Asian markets were also trading in red, after surveys showed deterioration in the outlook for Chinese manufacturing, adding to concerns over tighter government controls on lending. Japanese data on manufacturer sentiment also disappointed the investors. Back home, in scrip specific development, MBL Infrastructure touched the roof on reporting a rise of around 22-fold in its net profit at Rs 301.85 crore for the quarter ended March 31, 2018 as compared to Rs 13.81 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 35308.26, down by 115.22 points or 0.33% after trading in a range of 35106.57 and 35578.24. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.53%, while Small cap index was down by 0.63%.

The few gaining sectoral indices on the BSE were IT up by 0.69%, TECK up by 0.27% and Consumer Durables up by 0.23%, while Telecom down by 2.49%, Power down by 1.58%, Utilities down by 1.47%, Realty down by 1.11% and Energy down by 0.99% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 2.50%, Asian Paints up by 2.09%, Bajaj Auto up by 1.70%, Infosys up by 1.55% and ICICI Bank up by 1.36%. On the flip side, NTPC down by 3.79%, Bharti Airtel down by 3.53%, Adani Ports & SEZ down by 2.49%, HDFC Bank down by 1.95% and ONGC down by 1.86% were the top losers.

Meanwhile, in its highest reading since December 2017, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance -climbed from 51.2 in the previous month to 53.1 in June 2018, mainly led by the rise in new orders and output. The reading remained above the crucial 50 mark for the eleventh consecutive month that separates growth from contraction.

As per the survey report, favorable demand conditions, including new orders from overseas, resulted into greater output and increased staffing levels at firms. Improvements in market demand also raised firms purchasing activity. The report further found that in line with the expansion in output, new business placed at manufacturers in June rose to the sharpest degree in 2018 so far. Besides, the new export orders also expanded at solid pace and accelerated to the fastest since February.

However, despite strengthening demand conditions, business confidence was at the weakest level seen since last October. On the price front, inflationary pressures in the Indian manufacturing economy rose in June, thereby stretching the period of inflation to 33 months and rise in input cost was the sharpest since July 2014, amid rising steel and fuel prices. Subsequently, firms raised their output charges at the fastest pace since February.

The CNX Nifty is currently trading at 10664.20, down by 50.10 points or 0.47% after trading in a range of 10604.65 and 10736.15. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 2.22%, Asian Paints up by 2.10%, Bajaj Auto up by 1.73%, Infosys up by 1.47% and ICICI Bank up by 1.31%. On the flip side, NTPC down by 3.85%, Bharti Airtel down by 3.77%, Adani Ports & SEZ down by 2.91%, Hindalco down by 2.54% and Indiabulls Housing Finance down by 2.26% were the top losers.

Asian market were trading mostly in red; Nikkei 225 fell 492.58 points or 2.26% to 21,811.93, Taiwan Weighted declined 58.97 points or 0.55% to 10,777.94, KOSPI slipped 54.59 points or 2.40% to 2,271.54, Shanghai Composite dropped 71.65 points or 2.58% to 2,775.77, Straits Times was down by 30.29 points or 0.94% to 3,238.41 and Jakarta Composite dropped 42.68 points or 0.74% to 5,756.56. On the flip side, Hang Seng was up by 457.79 points or 1.58% to 28,955.11.

All European markets were trading in red; UK’s FTSE 100 fell 67.21 points or 0.89% to 7,569.72, France’s CAC decreased 53.13 points or 1.01% to 5,270.40 and Germany’s DAX was down by 63.10 points or 0.52% to 12,242.90.