Markets trade flat on penultimate session of F&O expiry

Indian equity benchmarks made a cautious start and are trading almost flat in early deals, as investors remained on sidelines on penultimate session of August F&O expiry. Traders also remained cautious with a private report that the Indian economy is in for a rough ride, with rising oil prices set to continue weighing on its already-weakened currency, widen its deficit, and affect its growth outlook. However, markets managed to trade above water as market participants took some support with Care Ratings in its latest report bet on a higher GDP growth April-June quarter as compared to the last year. Meanwhile, NSE Indices on Tuesday announced a minor rejig in the benchmark Nifty50 index by replacing pharma stock Lupin with JSW Steel from September 28, 2018.

On the global front, Asian markets are trading mostly in green at this point of time, though gains remained capped, as optimism over the US-Mexico trade deal was quickly replaced by caution ahead of a looming deadline on tariffs with China. The US markets ended slightly in green on Tuesday after a measure of consumer confidence hit a nearly 18-year high, underscoring a continued expansion of the US economy.

Back home, telecom sector stocks remained in focus with a report that India Ratings and Research (Ind-Ra) has maintained a negative-to-stable outlook on telecom sector for the rest of FY19, saying weak revenue per user and high capex will continue to suppress the sectoral credit outlook. In scrip specific developments, Bharti Airtel strengthened with arm getting approval to transfer 15% stake in Warburg Pincus and Glenmark Pharma edged higher with arm entering into licensing agreement for Tiotropium Bromide DPI.

The BSE Sensex is currently trading at 38923.54, up by 26.91 points or 0.07% after trading in a range of 38842.79 and 38989.65. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.71%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Realty up by 1.10%, Oil & Gas up by 0.87%, Healthcare up by 0.71%, PSU up by 0.54% and Basic Materials was up by 0.52%, while IT down by 0.50%, TECK down by 0.39% and FMCG was down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 1.84%, ONGC up by 1.23%, Bharti Airtel up by 1.08%, Mahindra & Mahindra up by 0.98% and SBI up by 0.97%. On the flip side, Coal India down by 2.65%, Infosys down by 0.85%, Power Grid Corporation down by 0.53%, Hindustan Unilever down by 0.50% and HDFC Bank down by 0.40% were the top losers.

Meanwhile, for the second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme (FAME India II), the Finance Ministry has approved a sizeable amount as provision. Union Minister Anant Geete has said that the biggest concern currently is charging facilities for an electric vehicle. Therefore, they are providing charging facilities free of cost in public places and government offices to encourage people to adopt electric mobility.

Geete said they have accorded priority to public transport, especially buses, taxis and three-wheelers, including auto-rickshaws in FAME. Similarly, they are also seriously thinking about government vehicles (switching to electric vehicle technology). The minister said about 300 charging stations have been established till now for electric vehicles. The Department of Heavy Industry had allocated 455 electric buses to selected cities and special category states through expression of interest recently.

Besides, the modalities of the scheme have been finalised by an inter-ministerial panel and it will soon be placed before the Union Cabinet for approval. Meanwhile, Prime Minister Narendra Modi will launch on September 7 the second phase of the FAME India scheme, offering incentives for mass adoption of electric vehicles with an outlay of Rs 5,500 crore.

The CNX Nifty is currently trading at 11739.65, up by 1.15 points or 0.01% after trading in a range of 11715.80 and 11753.20. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.16%, Vedanta up by 1.82%, ONGC up by 1.20%, GAIL India up by 1.08% and Sun Pharma Industries up by 1%. On the flip side, Coal India down by 2.32%, Tech Mahindra down by 1.51%, Indiabulls Housing down by 0.99%, Power Grid Corporation down by 0.84% and Bharti Infratel down by 0.75% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 gained 100.93 points or 0.44% to 22,914.40, Taiwan Weighted increased 83.14 points or 0.75% to 11,072.69, Straits Times rose 3.93 points or 0.12% to 3,251.48, Hang Seng added 64.01 points or 0.23% to 28,415.63 and KOSPI was up by 5.50 points or 0.24% to 2,308.62. On the flip side, Jakarta Composite decreased 31.23 points or 0.52% to 6,011.42 and Shanghai Composite was down by 9.75 points or 0.35% to 2,768.23.