Markets trade flat; IT, TECK major losers

In an extremely range-bound session of trade, Indian equity indices altering between positive and negative territory, were now trading flat in afternoon session, as key corporate results remained in focus. Traders took note of a recent ASSOCHAM-Ashvin Parekh Advisory Services LLP (APAS) joint study stating that a developed corporate bond market is the need of the hour for India as an 8% economic growth cannot be achieved without a robust corporate capex cycle, more so as sole reliance on bank loans is not warranted, particularly when bank lending has been squeezed. Further, fall in rupee value against dollar along with selling in IT, TECK and Healthcare stocks, too weighed on the sentiment. On the sectoral front, PSU bank stocks were on the upward trajectory, buoyed by the reports of capital infusion. The finance ministry has finalised capital infusion of Rs 11,336 crore in five PSBs to help them meet their interest payment commitments without impacting their regulatory capital requirements.

On the global front, most of the Asian counters were trading in red, as investors awaited further moves in global trade disputes. Back home, the BSE Sensex is currently trading at 36407.20, up by 33.76 points or 0.09% after trading in a range of 36310.17 and 36515.58. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.31%, while Small cap index was down by 0.69%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.27%, Metal up by 0.67%, Auto up by 0.41%, Bankex up by 0.41% and Consumer Disc up by 0.18%, while IT down by 0.82%, TECK down by 0.69%, Healthcare down by 0.56%, Capital Goods down by 0.55% and Industrials down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 2.63%, Bharti Airtel up by 2.40%, Axis Bank up by 1.81%, Tata Motors up by 1.51% and Tata Motors - DVR up by 1.27%. On the flip side, Coal India down by 1.10%, HDFC down by 0.98%, TCS down by 0.92%, Larsen & Toubro down by 0.73% and Infosys down by 0.35% were the top losers.

Meanwhile, Minister of State for Statistics and Programme Implementation Vijay Goel has stated that out of 1,315 infrastructure projects monitored by the government, as many as 245 projects are reporting time overruns, 345 are showing cost overruns and 98 are showing both time and cost overruns. The Ministry of Statistics and Programme Implementation monitors on-going Central Sector Infrastructure Projects (CSIPs) costing Rs 150 crore and above on time and cost overruns. From 2013-14 to 2017-18, the number of ongoing CSIPs has increased from 710 to 1,315 and the time overrun has come down from 29.44 percent to 19.32%.

The minister has said that major steps are being taken to ensure completion of CSIPs without time and cost overruns. He mentioned that these include rigorous project appraisal; OCMS; setting up of Revised Cost Committees in the Ministries for fixation of responsibility for time and cost overruns; regular review of infrastructure projects by the concerned administrative Ministries; and setting up of Central Sector Projects Coordination Committees (CSPCCs) in the States under the concerned Chief Secretaries for speedy implementation of major projects.

Goel further said that the percentage utilisation of funds over release during last four year (till 2017-18) was about 103 percent under Member of Parliament Local Area Development Scheme (MPLADS). He noted that the government releases funds in two equal installments of Rs 2.5 crore each (per annum for every MP).

The CNX Nifty is currently trading at 10978.65, down by 1.80 points or 0.02% after trading in a range of 10936.95 and 11006.50. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 2.84%, Vedanta up by 2.70%, Bharti Airtel up by 2.45%, Tata Motors up by 1.57% and Axis Bank up by 1.51%. On the flip side, Bharti Infratel down by 4.44%, Hindalco down by 2.40%, Bajaj Finance down by 1.52%, Bajaj Finserv down by 1.25% and UPL down by 1.23% were the top losers.

Most of the Asian counters were trading in red; Taiwan Weighted decreased 7.08 points or 0.07% to 10,835.38, Nikkei 225 shed 29.51 points or 0.13% to 22,764.68, Hang Seng dipped 84.51 points or 0.3% to 28,032.91, KOSPI dropped 7.82 points or 0.34% to 2,282.29 and Shanghai Composite was down by 15.79 points or 0.57% to 2,771.47.

On the flip side, Jakarta Composite increased 9.38 points or 0.16% to 5,900.11 and Straits Times rose 28.99 points or 0.89% to 3,269.49.