Key equities trade above neutral lines

Key equity benchmarks trimmed some of their gains in afternoon session, but managed to trade above the neutral lines, both Sensex and Nifty were trading above their crucial 36,300 and 10,950 marks. Buying in frontline blue chip stocks such Infosys, Sun pharma, Maruti Suzuki and Hindustan Unilever boosted sentiment, while selling was witnessed in Yes Bank, Power Grid and Tata Steel. Some optimism came with a report that rising imports from China have taken a heavy toll on the employment-generation potential of the manufacturing sector, especially among the micro, small and medium enterprises (MSMEs). Some comfort came with PHD Chamber of Commerce and Industry Vice President D K Aggarwal’s statement that India is approaching towards $100 billion foreign direct investment (FDI) inflow per annum by 2022 as volumes of FDI are increasing year after year. Traders paid no heed to the report that trade potential between India and Pakistan stands at $37 billion. The political tensions and lack of normal trade relations between the two nations have cast a shadow over cooperation efforts within South Asia. Besides, Indian Finance Minister Arun Jaitley stated that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors.

On the global front, European markets were trading in green, amid reports that Italy’s coalition government will deliver a budget that falls withing EU deficit rules. Asian markets were trading mixed, as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth. Back home, on scrip specific development, Mega Nirman gained on executing JV agreement with Sai Stone Crusher.

The BSE Sensex is currently trading at 36351.34, up by 46.32 points or 0.13% after trading in a range of 36064.10 and 36586.38. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.85%, while Small cap index down by 1.62%.

The few gaining sectoral indices on the BSE were Healthcare up by 0.95%, IT up by 0.85%, TECK up by 0.64%, FMCG up by 0.41%, Bankex was up by 0.01%, while Realty down by 4.70%, Telecom down by 1.67%, Energy down by 1.49%, Utilities down by 1.45%, Oil & Gas was down by 1.33% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.47%, Sun Pharma up by 2.15%, Maruti Suzuki up by 2.13%, Hindustan Unilever up by 2.03% and Asian Paints was up by 1.83%. On the flip side, Yes Bank down by 4.99%, Adani Ports & SEZ down by 4.18%, Power Grid down by 3.02%, Tata Steel down by 2.74% and Coal India was down by 1.83% were the top losers.

Meanwhile, in order to support domestic suppliers to plan their production schedule, the government is considering developing nationwide specifications for public procurement of goods by Central government agencies. The proposal is likely to be included in the new industrial policy being prepared by the commerce and industry ministry. The policy may also suggest extending the offset policy in public procurement in sectors beyond defence such as electronics and ICT.

Standardised specifications of products would enable government departments and public sector units (PSUs) to release large orders helping the industry achieve economies of scale. As per estimates, the government and PSUs procure goods and services worth over Rs 5 trillion every year. Standardised specifications would also help domestic industry plan their production and technology well in advance. In absence of this, government agencies place small orders with different specifications and requirements.

Policy actions can help public procurement add significant value to the domestic industry. Besides, the ministry has developed an e-marketplace portal (GeM) for buying of goods and services by different government agencies and departments. Offset policy has helped countries in encouraging investments and transfer of technology. This is currently used in defence sector in India.

The CNX Nifty is currently trading at 10970.45, up by 3.05 points or 0.03% after trading in a range of 10882.85 and 11049.35. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.31%, Cipla up by 2.12%, HCL Tech. up by 2.11%, Dr. Reddy’s Lab up by 2.07% and Hindustan Unilever was up by 2.03%. On the flip side, Indiabulls Housing Finance down by 13.20%, Yes Bank down by 5.17%, Adani Ports & SEZ down by 4.42%, GAIL India down by 3.37% and Tata Steel was down by 2.77% were the top losers.

Asian markets were trading mixed; Shanghai Composite was down by 16.34 points or 0.59% to 2,781.14. On the flip side Nikkei 225 surged 70.33 points or 0.29% to 23,940.26, Straits Times advanced 15.90 points or 0.49% to 3,235.06, Taiwan Weighted jumped 6.44 points or 0.06% to 10,978.85 and Jakarta Composite was up by 9.70 points or 0.17% to 5,872.52.

All European markets were trading in green; UK’s FTSE 100 jumped 9.34 points or 0.13% to 7,467.75, France’s CAC rose 5.75 points or 0.1% to 5,481.92 and Germany’s DAX was up by 3.92 points or 0.03% to 12,354.74.