Indian bourses trade marginally higher in noon deals

In an extremely choppy session, the local barometer gauges were trading marginally higher in afternoon session, as IT, TECK, FMCG and Realty shares witnessed buying despite weak trend in other Asian markets. Traders found some support with report that the Global Innovation Index (GII) has ranked India as the 57th most innovative nation in the world. The country has improved its ranking from 60th position last year. India has been improving steadily since it was ranked 81st in 2015. However, gains remained capped as anxiety remained among the local traders with India’s G-20 Sherpa Shaktikanta Das, expressing concern over increasing protectionism and trade conflicts across the world, said that countries ought to work out arrangements that are beneficial to all in the larger interest of reviving global growth. On the sectoral front, Telecom stocks were trading lower despite ICRA stating that Indian telecom industry, which is witnessing intense competition and pricing pressures, is likely to stabilize in a few quarters. It also said that as the competitive intensity is expected to moderate as the merged Vodafone and Idea stabilize, and the subscriber base of the existing operators diminishes.

On the global front, Asian markets were trading in red, following the release of a list of an additional $200 billion in Chinese goods on which the U.S. is considering imposing tariffs. Back home, the BSE Sensex is currently trading at 36272.51, up by 32.89 points or 0.09% after trading in a range of 36169.70 and 36341.08. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.49%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were IT up by 1.61%, TECK up by 1.38%, FMCG up by 0.55%, Realty up by 0.36% and Telecom up by 0.08%, while Metal down by 2.71%, Basic Materials down by 1.35%, PSU down by 1.12%, Industrials down by 0.59% and Auto down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.62%, Bajaj Auto up by 1.58%, Axis Bank up by 1.31%, Hindustan Unilever up by 0.94% and ITC up by 0.81%. On the flip side, Coal India down by 3.56%, Vedanta down by 3.19%, Tata Motors down by 1.96%, Tata Steel down by 1.95% and Tata Motors DVR down by 1.93% were the top losers.

Meanwhile, India’s G-20 Sherpa Shaktikanta Das has expressed concern over increasing protectionism and trade conflicts across the world and said countries ought to work out arrangements that are beneficial to all in the larger interest of reviving global growth. He added that global growth has taken a downward turn in the aftermath of 2008 financial crisis. Then advanced economies were under pressure because of subsequent developments. Financial crisis was followed by debt crisis in PIGS countries (Portugal, Italy, Greece and Spain). It was followed by Eurozone crisis. He also said that there was another major event like Britain deciding to exit the European Union, putting further pressure on global growth.

Das further said ‘But now I think in recent months, the US economy as well as European economies are showing signs of revival. On the whole, the global economy appears to be in revival mode. Therefore, at this juncture, any trade conflict which goes beyond a certain point will definitely have negative impact on global growth’. He further said that free trade has been responsible for sustained global growth over the years and added that protectionist tendencies going beyond a point, naturally will have adverse consequences on world economy.

Highlighting that the world economy cannot afford another era of slow growth, the former Economic Affairs Secretary said therefore it is necessary that all countries act in a spirit of cooperation and resolve -- the trade issue bilaterally or multilaterally. He also noted that some of the trade issues are bilateral in nature and unless they are resolved the global economy faces negative prospect of growth slowing down. He added in that background, the negotiations taking place under the aegis of World Trade Organisation (WTO), among the trade ministers assumes very great significance and countries work out arrangements which are beneficial to all.

The CNX Nifty is currently trading at 10956.70, up by 9.45 points or 0.09% after trading in a range of 10923.00 and 10976.65. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 4.01%, TCS up by 3.81%, Indiabulls Housing Finance up by 1.81%, Bajaj Auto up by 1.36% and Axis Bank up by 1.34%. On the flip side, Coal India down by 3.57%, Hindalco down by 3.43%, Vedanta down by 3.34%, UPL down by 2.57% and Tata Motors down by 1.94% were the top losers.

All the Asian markets were trading in red; Nikkei 225 decreased 264.68 points or 1.21% to 21,932.21, Hang Seng dropped 434.36 points or 1.54% to 28,247.89, KOSPI shed 13.54 points or 0.59% to 2,280.62, Shanghai Composite dipped 55.46 points or 2% to 2,772.17, Taiwan Weighted decreased 80.05 points or 0.75% to 10,676.84, Straits Times was down by 29.00 points or 0.89% to 3,245.83 and Jakarta Composite decreased 16.64 points or 0.28% to 5,865.12.