Indian equity benchmarks continue to trade choppy

Domestic equity benchmarks continue to trade choppy with positive bias in the afternoon session. Investors took some support with Union Minister Suresh Prabhu reviewing proposed agriculture export and new industrial policies and discussed strategies to boost outward shipments with top officials. Buying in frontline blue chip stocks such as Coal India, Wipro, ONGC and Sun pharma too aiding sentiment, while selling in IndusInd Bank, Hindustan Unilever and Tata steel kept the gains in the markets in check. Traders took note of NITI Aayog’s statement that India needs to focus more on meeting its revenue deficit target than adhering to the fiscal deficit aim. NITI Aayog added that India needs to shift its obsession with the fiscal gap number and this obsession must end.

Positive opening in European markets too providing some support to domestic markets, as caution settled in before trade talks between the United States and China later in the week, though a weaker dollar boosted shares in international earners and commodities sectors. Asian counters were trading in green, supported by hopes Beijing and Washington would dial back trade hostilities.

Back home, steel stocks remained in focus after India’s steel ministry has strongly opposed the inclusion of finished steel products in the proposed regional free-trade agreement, saying it would have an adverse impact on the industry that’s recovering from a crisis. In scrip specific developments, Maruti Suzuki edged higher on aiming to double sales of LCV Super Carry in FY-19 and Mahindra Finance gained on raising Rs 100 crore via NCDs.

The BSE Sensex is currently trading at 38291.22, up by 12.47 points or 0.03% after trading in a range of 38213.87 and 38402.96. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.54%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Power up by 1.12%, Healthcare up by 1.11%, Energy up by 0.75%, Utilities up by 0.72% and Industrials was up by 0.43%, while Realty down by 1.06%, Telecom down by 0.30%, Consumer Durables down by 0.20%, Bankex down by 0.19% and Metal was down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.67%, Wipro up by 1.90%, Sun Pharma up by 1.87%, Tata Motors - DVR up by 1.74% and Reliance Industries was up by 0.97%. On the flip side, Tata Steel down by 2.34%, SBI down by 0.93%, Yes Bank down by 0.89%, Hindustan Unilever down by 0.80% and Indusind Bank was down by 0.78% were the top losers.

Meanwhile, in order to promote inclusive growth in India, the International Labour Organisation (ILO) in its latest report title ‘India Wage Report: Wage policies for decent work and inclusive growth’ has stated that the country needs to improve its wage policies. Though, it also said that low pay, gender wage gap and informality remain a serious challenge to India’s path to achieving decent working conditions and inclusive growth.

The report showed that about 33% i.e. 62 million workers were paid less than the indicative national minimum wage, and the rate of low pay was higher among women. It further said that since there is a lack of consensus with regard to the methodology used to determine the minimum wage rate, neither the central nor state governments are using it as a floor for determining minimum wages. It added that though the overall wage inequality in India has declined somewhat since 2004-05, it continues to remain high.

The ILO said daily wages increased rapidly for casual workers, workers from rural areas, unorganised sector and female workers. It said only a limited number of regular/salaried workers, mostly in urban areas and highly skilled professionals earn substantially higher average wages. Daily wages in urban areas remain more than twice as high as wages in rural areas.

In order to ensure inclusive growth through sustainable wage policies, the ILO has recommended extending legal coverage to all workers in an employment relationship, ensuring full consultation of social partners on minimum wage systems, undertaking regular evidence-based adjustments, progressively consolidating and simplifying minimum wage structures, and taking stronger measures to ensure a more effective application of minimum wage law. It also recommends other measures to improve the current minimum wage system in India.

The CNX Nifty is currently trading at 11563.10, up by 11.35 points or 0.10% after trading in a range of 11539.60 and 11581.75. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.01%, Tech Mahindra up by 2.89%, Coal India up by 2.76%, Grasim Industries up by 2.32% and Zee Entertainment was up by 1.55%. On the flip side, Tata Steel down by 2.32%, BPCL down by 1.66%, HPCL down by 1.19%, Hindustan Unilever down by 1.07% and SBI was down by 1.01% were the top losers.

All the Asian markets were trading in green; Straits Times rose 0.59 points or 0.02% to 3,205.30, Shanghai Composite jumped 35.36 points or 1.29% to 2,733.83, Hang Seng gained 154.77 points or 0.56% to 27,752.79, Jakarta Composite advanced 55.44 points or 0.93% to 5,947.63, Taiwan Weighted surged 93.15 points or 0.86% to 10,792.20, KOSPI increased 22.18 points or 0.98% to 2,270.06 and Nikkei 225 was up by 20.73 points or 0.09% to 22,219.73.

European markets are trading in green; UK’s FTSE 100 strengthened 1.25 points or 0.02% to 7,592.51, France’s CAC soared 29.68 points or 0.55% to 5,409.33and Germany’s DAX was up by 62.61 points or 0.51% to 12,393.91.