Sensex, Nifty trim losses but continue to trade in red

Indian equities trimmed most of their losses but continued to trade in red in the afternoon session, following weak global cues amid continued turmoil in Turkish lira. Investors have maintained cautious approach ahead of Consumer Price Index (CPI) data for July scheduled to be released today. The rupee has also come under pressure, falling by 64 paise to 69.47 against US dollar in early trade at the forex market. However, the markets managed to pare some losses with CII-ASCON Industry Survey report highlighting that India’s economic growth will improve further in the coming quarters due to recovery in domestic demand as also the investment cycle. The demand and investment will be supported by better consumption patterns on account of favourable monsoon, moderation in inflation and the onset of festive season. Besides, industrial output recorded a growth of 7% in June on account of higher output in mining, manufacturing and power generation segments.

On the global front, Asian markets were trading in red, on fears that the economic crisis gripping Turkey could spill over into the global economy. Back home, the BSE Sensex is currently trading at 37725.38, down by 143.85 points or 0.38% after trading in a range of 37559.26 and 37726.76. 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 0.19%, while Small cap index was down by 0.40%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.73%, IT up by 0.63%, Consumer Durables up by 0.40%, TECK up by 0.39% and Utilities up by 0.32%, while Bankex down by 1.03%, PSU down by 0.86%, Energy down by 0.53%, Oil & Gas down by 0.48% and Basic Materials down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Coal India up by 1.94%, Sun Pharma up by 1.63%, Bharti Airtel up by 1.46%, Mahindra & Mahindra up by 1.16% and Bajaj Auto up by 0.85%. On the flip side, Vedanta down by 3.02%, SBI down by 2.73%, Tata Motors - DVR down by 2.03%, Yes Bank down by 1.51% and ONGC down by 1.42% were the top losers.

Meanwhile, Niti Aayog member Ramesh Chand has said that the government's move to increase the minimum support price (MSP) for various crops and adoption of model Agricultural Produce Market Committee (APMC) Act by states would help in doubling farmers' income by the year 2022. He pointed out that these actions, including fostering competitive markets, are in line with the government's vision of doubling farmers' income within five years.

Chand said ‘I am confident that if states adopt the measures which have been suggested by the government then we will be in a position of achieve this target at the national level’. Besides, he said the growth in agriculture sector is close to 5% which is reasonable to achieve the target. He said that the Centre has also included better price realisation by farmers as one of the components in the roadmap to achieve the target. However, he said that this cannot be done only through hike in MSP, so they are emphasizing on adoption of model APMC Act by states. He added that even competitive markets are important for transmitting benefits of higher MSP to farmers. 

In the month of July 2018, the government hiked the MSP for paddy by a record Rs 200 per quintal that will cost the exchequer over Rs 15,000 crore and help fulfil its poll promise to give farmers 50% more rate than their cost of production. The previous highest hike in paddy MSP was Rs 170 a quintal in the 2012-13 crop year. In the last four years, the government has raised the paddy MSP between Rs 50-80 per quintal.

The CNX Nifty is currently trading at 11384.95, down by 44.55 points or 0.39% after trading in a range of 11340.30 and 11390.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 4.33%, Grasim Industries up by 2.13%, Coal India up by 2.03%, Tech Mahindra up by 1.82% and Sun Pharma up by 1.70%. On the flip side, Indiabulls Housing Finance down by 3.35%, Vedanta down by 3.06%, SBI down by 2.55%, HPCL down by 2.15% and BPCL down by 2.08% were the top losers.

All the Asian markets were trading in red; Hang Seng decreased 376.49 points or 1.35% to 27,990.13, KOSPI dropped 34.34 points or 1.53% to 2,248.45, Straits Times dipped 24.69 points or 0.76% to 3,260.09, Nikkei 225 shed 440.65 points or 2.02% to 21,857.43, Taiwan Weighted fell 234.76 points or 2.18% to 10,748.92, Shanghai Composite decreased 6.34 points or 0.23% to 2,788.97 and Jakarta Composite was down by 191.09 points or 3.25% to 5,886.08.