Senex, Nifty in green terrain; FMCG stocks gain

Indian equity benchmarks were trading in green in late afternoon session, following firm European markets.  Gains led by FMCG and Banking indices along with major industry gainers such as Yes Bank and ITC helped the markets to keep their heads above water in late noon deals. The street got relief with Commerce and Industry Minister Suresh Prabhu’s statement that India’s export is likely to grow at around 20% in June month. He also noted that India will not be affected by the headwinds at global trade level. Some support also came with a private report stating that the Income Tax (I-T) Department has made record recoveries of Rs 1 lakh crore in 2017-18, contributing 10 percent of total direct tax collection in the last financial year. Traders also took note of another private report that India will not directly be affected in case of a global trade war but the second order effects could impact the economy.

However, heavy selling was witnessed at Consumer Durables and IT counters. Besides, the broader markets were trading contradictory to the larger peers with the losses in the range of 0.08%-0.33%. On the sectoral front, banking stocks remained in focus, after the Reserve Bank of India (RBI) tightened rules on banks' statutory auditors saying it reserved the right to not approve appointments of such auditors for a specified period if their audit quality was not found satisfactory.

On the global front, European markets were trading in green, following reports Germany's leading carmakers had stepped up their lobbying efforts to avert a trade war. However, Asian markets were trading in red, as caution crept in ahead of the July 6 deadline, when US tariffs on Chinese goods are due to take effect. Back home, in scrip specific development, Fiem Industries traded higher after the company signed a 'Technical Assistance Agreement' with TOYODENSO, Japan and Toyota Tsusho Corporation, Japan for manufacturing of Bank Angle Sensor for motorcycles for Indian market.

The BSE Sensex is currently trading at 35661.78, up by 16.38 points or 0.05% after trading in a range of 35522.88 and 35748.26. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.33%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were FMCG up by 1.38%, Bankex up by 0.56%, Auto up by 0.17%, Consumer Disc up by 0.11% and PSU up by 0.06%, while Consumer Durables down by 2.47%, IT down by 1.72%, TECK down by 1.48%, Realty down by 1.17% and Metal down by 1.14% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.46%, ITC up by 3.37%, Asian Paints up by 2.26%, Coal India up by 2.12% and Maruti Suzuki up by 1.34%. On the flip side, Infosys down by 4.76%, Vedanta down by 2.56%, Tata Motors down by 2.02%, Tata Steel down by 1.86% and Reliance Industries down by 1.44% were the top losers.

Meanwhile, highlighting the efforts being taken by the government to boost exports, Commerce and Industry Minister Suresh Prabhu has said that India’s export is likely to grow at around 20% in June month. He also noted that India will not be affected by the headwinds at global trade level.

Suresh Prabhu further underlined that the ministry is working on a detailed strategy to increase exports at a rapid rate and added that exports should be treated as priority sector lending by the banking system, in order to resolve credit-related issues of exporters. The ministry will be holding a meeting with Indian Bank Association to discuss the same issue.

Besides, Commerce Minister said that the government is dealing with the matter of US challenging India's export benefit schemes in the World Trade Organisation (WTO), noting that 'we have to follow the rules of WTO'. However, Prabhu raised concern that these are challenging times for global trade as countries are taking protectionist measures. He also added that countries are trying to put sanctions for their benefit but it would not give positive results as economic sanctions essentially mean 'that you are cut-off from rest of the world'.

Meanwhile, the country's merchandise exports reported growth of 201.8% in May, highest in six months to $28.86 billion and the official figures for the month of June will be released by Commerce Ministry on July 15.

The CNX Nifty is currently trading at 10775.60, up by 5.70 points or 0.05% after trading in a range of 10726.25 and 10786.05. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.46%, Ultratech Cement up by 4.15%, ITC up by 3.44%, Asian Paints up by 2.37% and Coal India up by 2.08%. On the flip side, Titan Company down by 4.97%, Infosys down by 4.79%, Vedanta down by 2.59%, Tata Steel down by 2.22% and Tata Motors down by 2.15% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 170.05 points or 0.79% to 21,546.99, Hang Seng was down by 59.58 points or 0.21% to 28,182.09, KOSPI lost 7.91 points or 0.35% to 2,257.55, Shanghai Composite declined 25.15 points or 0.92% to 2,733.98, Taiwan Weighted fell 110.06 points or 1.04% to 10,611.81 and Jakarta Composite decreased 4.70 points or 0.08% to 5,728.94. On the flip side, Straits Times increased 4.98 points or 0.15% to 3,249.87.

All European markets were trading in green; UK’s FTSE 100 increased 25.07 points or 0.33% to 7,598.16, France’s CAC gained 34.28 points or 0.64% to 5,354.78 and Germany’s DAX surged 121.16 points or 0.97% to 12,438.77.