Bourses trim losses to come off day’s low

Key Indian benchmarks trimmed most of their losses in afternoon session to come off their intraday low points, as Healthcare, IT, TECK and Energy shares witnessed buying despite weak trend in other Asian markets. Traders found some support with rating agency Crisil Research expecting the corporate revenue growth to grow by around 12 percent for the quarter ended September 30, 2018. This would mark the fourth consecutive quarter of double-digit growth. However, the trade remained in negative terrain, as anxiety remained among the local traders data showing that Inflation based on wholesale prices rose to a two-month high of 5.13 per cent in September, mainly due to hardening of food prices and rise in cost of petrol and diesel. Traders also remained concerned with the Central Statistics Office’s (CSO) data showed that India’s retail inflation rate slightly rose to 3.77% in September as compared to 3.69% in August, driven by higher food, fuel prices and a depreciating rupee. On the other hand, the country’s industrial output eased in August with a slower rise of 4.3% as compared to 6.52% in July.

On the global front, Asian markets were trading in red, as investor worries continued about global trade tensions and prospects for economic growth. Back home, the BSE Sensex is currently trading at 34728.32, down by 5.26 points or 0.02% after trading in a range of 34559.98 and 35008.65. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.43%, while Small cap index was up by 0.96%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.89%, IT up by 1.24%, TECK up by 1.00%, Energy up by 0.40% and Power up by 0.36%, while Consumer Durables down by 1.13%, Auto down by 0.70%, Consumer Disc down by 0.61%, Capital Goods down by 0.57% and Bankex down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.62%, Sun Pharma up by 1.41%, Infosys up by 1.37%, ONGC up by 1.34% and Wipro up by 1.11%. On the flip side, Mahindra & Mahindra down by 3.26%, Hindustan Unilever down by 3.24%, Indusind Bank down by 2.44%, Axis Bank down by 1.89% and ICICI Bank down by 1.77% were the top losers.

Meanwhile, emphasizing on the need to strengthen institutions like International Monetary Fund (IMF) to deal with the current financial crisis, Economic Affairs Secretary S C Garg called for quota reforms so that share of developing nations increases in line with their growing economic position. He also pointed out that protectionism, trade tensions and tightening of financial conditions are challenges for the world. In the context of these challenges, he said that the time for building buffer and policy action by the Emerging Market Economies (EMDs) is not there.

Garg has stated that a suitable approach could be the association of the IMF, being at the centre of the GFSN (global financial safety net), at an earlier stage rather than when crisis has already occurred. Hence, he said the strengthening of this Multilateral Institution is crucial. It noted that both, enhancement in the Quantum of Quota Resources and Realignment of Voting Shares should take place so that Quota Shares of EMDCs (Emerging Market & Developing Countries) increase in line with its growing relative economic position in the world. Besides, he mentioned that India had supported the capital increase of the World Bank Group with the expectation that it will deliver on its core development responsibilities articulated in the Forward Look.

The Secretary further said that the additional capital would be put to work expeditiously and leveraged to enhance International Bank for Reconstruction and Development (IBRD) lending volumes and International Finance Corporation (IFC) investments. He added that Human Capital Index has severe flaws and therefore it will not succeed in focusing the attention of the world on building the right kind of human capital, which new technologies will need. He also welcomed the emphasis placed by the World Bank on building human capital but said that he is not so certain about the Human Capital Index in its current form.

The CNX Nifty is currently trading at 10460.30, down by 12.20 points or 0.12% after trading in a range of 10410.15 and 10524.60. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 3.84%, Cipla up by 2.26%, ITC up by 1.65%, Indiabulls Housing Finance up by 1.47% and HCL Tech. up by 1.30%. On the flip side, Mahindra & Mahindra down by 3.32%, HPCL down by 3.30%, Hindustan Unilever down by 3.27%, GAIL India down by 2.88% and Indusind Bank down by 2.86% were the top losers.

Asian markets were trading in red, Nikkei 225 decreased 423.36 points or 1.9% to 22,271.30, KOSPI shed 16.73 points or 0.78% to 2,145.12, Straits Times fell 22.36 points or 0.73% to 3,046.81, Shanghai Composite decreased 39.53 points or 1.54% to 2,567.38, Hang Seng dropped 368.85 points or 1.45% to 25,432.64, Taiwan Weighted dipped 144.69 points or 1.46% to 9,901.12 and Jakarta Composite decreased 17.74 points or 0.31% to 5,738.75.