Benchmarks trade in red zone; Sensex tanks over 700 points

Indian shares continued to trade in red zone in early noon session, with Sensex and Nifty plunging over 700 and 200 points respectively. The BSE Midcap and Smallcap indices too were suffering losses of over 1.50%. Falling Rupee, surging crude oil prices, firming bond yields and weakness in other Asian markets weighed on domestic market sentiments. Selling in frontline blue chip stocks such Reliance Industries, Hero MotoCorp, TCS and HDFC too dampened sentiment. Investors’ sentiments remain dented with FIEO’s report that the growth of country's exports is likely to slow in the coming months owing to various domestic and global factors. Indian exports have always been influenced by the growth in global trade and therefore, the subdued global trade forecast of 3.9 per cent in 2018 and 3.7 per cent in 2019 will have adverse bearing on exports, the Federation of Indian Export Organisations.

On the global front, Asian market were trading in red, owing to concerns regarding the US-China trade war, US -Mexico-Canada bilateral agreement and Italy's budgetary woes. Back home, in the scrip specific development, Future Enterprises jumped on the bourses as the company has executed shareholders agreement and share subscription agreement, to acquire majority stake in Livquik Technology.

The BSE Sensex is currently trading at 35265.22, down by 710.41 points or 1.97% after trading in a range of 35265.22 and 35820.53. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap lost 1.83%, while Small cap index was down by 1.70%.

The only gaining sectoral indices on the BSE was Capital Goods up by 0.34%, while Energy down by 3.68%, IT down by 2.71%, TECK down by 2.41%, Oil & Gas down by 2.24% and Consumer Durables was down by 2.01% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.74%, Yes Bank up by 1.53%, Tata Motors - DVR up by 0.95%, Axis Bank up by 0.91% and Vedanta was up by 0.23%. On the flip side, Reliance Industries down by 5.07%, Hero MotoCorp down by 4.35%, TCS down by 3.60%, HDFC down by 2.89% and Indusind Bank was down by 2.72% were the top losers.

Meanwhile, in order to promote India’s outward shipments, Commerce and Industry Minister Suresh Prabhu has urged various ministries such as textiles, MSME and chemicals to work on tapping export opportunities with countries in South Asia, as there is huge potential to increase India’s exports. He noted that his Ministry was focusing on nine sectors - gems and jewellery, leather, textile and apparel, engineering, electronics, chemicals and petrochemicals, pharma, agri and allied and marine products.

The Minister further highlighted the need for exploring barter arrangements with specific countries as well as collaborative exports in partnership with other countries. He also asked the line ministries to adhere to India’s WTO commitments while designing their export promotion policies. Besides, he said that industries which were relocating from China on account of rising labour cost should be invited to invest in India.

Exports are up by 16.13 percent to $136.10 billion in April-August 2018-19. The Directorate General of Foreign Trade (DGFT) has informed that based on the inputs received from Export Promotion Councils, line ministries and other stakeholders, a comprehensive export strategy and action plan has been finalised.  

The CNX Nifty is currently trading at 10636.40, down by 221.85 points or 2.04% after trading in a range of 10636.10 and 10754.70. There were 5 stocks advancing against 44 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Bharti Infratel up by 2.15%, Larsen & Toubro up by 1.55%, Yes Bank up by 1.41%, Axis Bank up by 0.65% and HPCL was up by 0.34%. On the flip side, Eicher Motors down by 5.94%, Reliance Industries down by 5.13%, Hero MotoCorp down by 4.33%, Tech Mahindra down by 3.86% and TCS was down by 3.78% were the top losers.

All Asian markets were trading in red, Hang Seng fell 502.02 points or 1.89% to 26,589.24, Nikkei 225 lost 135.34 points or 0.56% to 23,975.62, Taiwan Weighted slipped 145.03 points or 1.35% to 10,718.91, Jakarta Composite dropped 99.67 points or 1.73% to 5,768.07, KOSPI declined 33.97 points or 1.49% to 2,275.60 and Straits Times was down by 34.93 points or 1.08% to 3,232.47.