Key gauges trim gains to trade flat

Local equities failed to hold the grip on the street and trimmed gains to trade flat in the morning session, ahead of the release of key GDP data scheduled later in the day. Traders were cautions with a report that India’s economy likely sustained strong growth momentum for a second straight quarter in April-June, but the depreciating rupee and monetary tightening pose risks for coming periods. Adding to the pessimism, rupee hits its fresh all-time low of 71-mark against the US dollar in opening trade, the local currency was trading 17 paise down at 70.91. Investors took note of a private report that the rupee’s slide past the 70 mark to the US dollar has prompted Indian importers to seek medium-term cover for overseas payment liabilities as fears grow that the local unit is unlikely to rebound in a hurry. Investors failed to get any solace with report that India on Thursday made a strong pitch to Standard & Poor’s (S&P) for a rating upgrade, citing improving economic growth prospects, fiscal discipline, stabilization of the GST regime and broader macroeconomic stability despite elevated oil prices and a depreciating rupee. S&P has kept India’s sovereign rating unchanged at the lowest investment grade of ‘BBB-’since January 2007.

On the global front, Asian markets were trading mostly in red, after reports US President Donald Trump was preparing to step up a trade war with Beijing and ready to impose more tariffs on Chinese imports. Trump said he was ready to impose more tariffs on $200 billion worth of goods from China as soon as the public comment period on the plan ends next week. Back home, in scrip specific development, HPCL trading in green on allocating Rs 75,000 crore CAPEX for next five years. Besides, Dilip Buildcon soared on receiving LoA from MSRDC for new EPC Project.

The BSE Sensex is currently trading at 38673.81, down by 16.29 points or 0.04% after trading in a range of 38611.46 and 38838.45. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.33%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.69%, IT up by 1.28%, TECK up by 1.16%, Power up by 0.93% and Utilities up by 0.85%, while Energy down by 0.92%, Bankex down by 0.40%, Realty down by 0.31%, Metal down by 0.24% and Basic Materials was down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.58%, Sun Pharma up by 2.38%, Wipro up by 1.87%, Infosys up by 1.58% and NTPC was up by 1.12%. On the flip side, Yes Bank down by 4.78%, Reliance Industries down by 1.66%, Vedanta down by 1.50%, Mahindra & Mahindra down by 1.16% and ICICI Bank was down by 0.73% were the top losers.

Meanwhile, Union Finance Minister Arun Jaitley has said that India may surpass the Britain (UK) to become the world’s fifth largest economy in 2019 on account of growing consumption and strong economic activity. He highlighted ‘This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy)’.  India’s gross domestic product (GDP) was valued at $2.597 trillion at the end of 2017 overtaking French economy, which was amounted at $2.582 trillion last year.

The UK economy stood at $2.94 trillion at the end of 2017. India recorded a growth of 6.7 per cent in FY18 and expected to accelerate to 7.4 per cent in the current financial year on pick up in industrial activity and good monsoon. The minister further added that other economies in the world are growing at much lesser rate and India has the potential to be among top three economies of the world in the next 10-20 years.

Besides, the Jaitley highlighted that in the last four years the economy has witnessed a series of reforms under the Modi government, both legislative and otherwise. He also said the economy has been able to come a long way, after the UPA's wrong decisions had let to high inflation, high fiscal deficit, high current account deficit, a standstill infrastructure, power sector and allocation of natural resources.

The CNX Nifty is currently trading at 11682.45, up by 5.65 points or 0.05% after trading in a range of 11654.80 and 11727.65. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 3.45%, Bharti Infratel up by 2.41%, Sun Pharma up by 2.38%, Power Grid up by 2.16% and Tech Mahindra was up by 2.12%. On the flip side, Yes Bank down by 4.93%, Reliance Industries down by 1.68%, Vedanta down by 1.33%, Mahindra & Mahindra down by 1.24% and Bajaj Finance was down by 1.17% were the top losers.

Asian markets were trading mostly in red; Straits Times slipped 5.71 points or 0.18% to 3,220.01, Taiwan Weighted dropped 83.07 points or 0.75% to 11,010.68, Hang Seng fell 262.68 points or 0.94% to 27,901.37, Shanghai Composite declined 2.23 points or 0.08% to 2,735.51, Jakarta Composite fell 71.61 points or 1.2% to 5,947.35 and Nikkei 225 was down by 5.96 points or 0.03% to 22,863.54. On the other hand, KOSPI increased 8.02 points or 0.35% to 2,315.37.