Benchmarks trade slightly in red in early deals

Indian equity benchmarks made a cautious start and are trading with marginal losses in early deals on Tuesday. Sentiments remained downbeat with private report that India’s economic growth is expected to moderate in the second half of this financial year after a strong first quarter, owing to tighter financial conditions, high oil prices and slowing global growth. It expects real GDP growth to slow to 7-7.3% in the second half of this fiscal from 8.2% in June 2018 quarter. Traders remained cautious with private report that a depreciating currency will impact the economy adversely, as India imports around 83% of its crude oil requirement. Adding to the pessimism, India Meteorological Department (IMD) data showed that the countrywide monsoon saw the highest rain deficiency of the season in August -- ironically the month when a large part of Kerala was submerged and many other states received excess rainfall.

On the global front, Asian counters are exhibiting mixed trend as trade tensions between the US and China remained in focus. The US markets ended mostly higher on Monday on optimism for further tax relief; although gains were limited as traders seemed reluctant to make any significant moves amid a lack of major US economic data.

Back home, steel sector stocks exhibit mixed trend with Moody’s Investors Service’s statement that robust steel demand, especially from the domestic construction, infrastructure and automotive sectors will keep end-product prices high, even as rising costs for key inputs, coking coal and iron ore pressure profitability. In scrip specific development, Yes Bank strengthened on raising $400 million through Syndicated loan facility and CONCOR gained on entering into agreement with Central Warehousing Corporation.

The BSE Sensex is currently trading at 37907.31, down by 14.86 points or 0.04% after trading in a range of 37848.64 and 38043.27. 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 0.20%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were IT up by 0.42%, TECK up by 0.40%, Healthcare up by 0.36%, Bankex up by 0.32% and Power was up by 0.27%, while FMCG down by 1.37%, Consumer Durables down by 1.00%, Metal down by 0.39%, Oil & Gas down by 0.17% and Basic Materials was down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.69%, Mahindra & Mahindra up by 1.49%, Infosys up by 1.28%, Asian Paints up by 1.13% and Sun Pharma up by 1.02%. On the flip side, ITC down by 2.12%, Hero MotoCorp down by 1.44%, Hindustan Unilever down by 1.40%, Tata Steel down by 1.26% and Coal India down by 1.04% were the top losers.

Meanwhile, the Asian Development Bank (ADB) in its latest report on ‘Key Indicators for Asia and the Pacific 2018’ has stated that share of India in the Gross Domestic Product (GDP) of Asia and Pacific region moved up to 17.3% in 2017 from 14.6% in 2000. It added that the Asia and Pacific region accounts for more than two-fifths of the share of global GDP in Purchasing Power Parity (PPP) terms.

The report said the three largest economies in Asia and the Pacific People’s Republic of China (PRC), India, and Japan accounted for more than 70% of the region’s GDP at PPP in 2017, up from about 63% in 2000. China accounted for 42.7% of the region’s total output at PPP in 2017, compared with 25.1% in 2000. The next largest regional share of GDP at PPP in 2017 was that of India at 17.3%, up from 14.6% in 2000, while Japan was third, with a 10.2% share in 2017, down from 23.1% in 2000.

According to the report, Asia and the Pacific’s growing share of global output, which increased from 30.1% to 42.6% during the review period, came at the expense of the global shares of North America, Europe, South America, and the rest of the world, which declined by 6.8, 4.7, 1.3, and 0.3 percentage points, respectively. The report further said that combined population of Asia and the Pacific reached 4.14 billion in 2017, or 54.8% of the world's total population, down from 56% in 2000.

In 2017, 5 of the 10 most populous economies in the world were located in Asia and the Pacific, including the two most populous, China (1.39 billion) and India (131 billion). The region's population is gradually ageing amid increasing life expectancy and decreasing fertility rates. In 2050, the number of people in Asia and the Pacific over the age of 65 is expected to exceed the number under the age of 15.

The CNX Nifty is currently trading at 11429.20, down by 8.90 points or 0.08% after trading in a range of 11415.95 and 11479.40. There were 20 stocks advancing against 29 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Mahindra & Mahindra up by 1.54%, Axis Bank up by 1.46%, Infosys up by 1.40%, Sun Pharma up by 1.21% and SBI up by 0.97%. On the flip side, ITC down by 2.40%, Titan Co down by 1.91%, Bharti Infratel down by 1.81%, Hindustan Unilever down by 1.51% and GAIL India down by 1.28% were the top losers.

Asian markets are exhibiting mixed trend; Nikkei 225 surged 278.95 points or 1.23% to 22,652.04, Taiwan Weighted rose 1.19 points or 0.01% to 10,726.99 and Shanghai Composite was up by 8.06 points or 0.3% to 2,677.54.

On the flip side, Straits Times decreased 4.59 points or 0.15% to 3,116.33, Hang Seng slipped 6.50 points or 0.02% to 26,606.92 and KOSPI was down by 4.72 points or 0.21% to 2,283.94.