Weak trade persists on Dalal Street

Weak trade continued on Dalal Street in late afternoon session, with Sensex and Nifty losing 106 and 29 points, respectively, amid weak cues from European markets. The losses led by Metal, Telecom and Power stocks also contributed to the down move. Domestic sentiments got cautious with the government think-tank NITI Aayog’s statement that lack of financial literacy, high cost of banking services and excessive regulatory requirements are the key constraints in the financial inclusion goal for India. Adding some concerns, markets regulator Sebi banned Kolkata-based stock broker Guiness Securities (GSL) and 35 entities from securities market till further directions in a case related to non-settlement of client funds and misappropriation of securities. These 35 entities also include GSL's present and former directors. However, the broader markets managed to keep their heads above water in late noon deals.

On the sectoral front, shares related to tourism industry were trading higher, with Government think-tank NITI Aayog stating that the focus of the ministry dealing with travel, tourism and hospitality should be to increase India's share in global international tourist arrivals from 1.18 per cent to 3 per cent in the next five years, while tyre stocks also gained, amid reports that the GST Council is likely to slash tax rates on automobile tyres to 18 per cent from 28 per cent currently in its next meeting Saturday. However, most of the banking stocks were trading lower, as Cibil data reported that banks see rising stress in retail books with the loans against property (LAP), mortgage loans, credit cards spoiling the party.

On the global front, European markets were trading in red, as Germany's business confidence slid to its lowest level in over two years. The Ifo Business Climate Index dropped to 101 from 102 in November. The street had expected a score of 101.7. Besides, Germany's producer price inflation remained at its highest level in 19 months in November. The data from the Federal Statistical Office showed that producer prices rose 3.3 percent year-on-year in November, same as in October. Asian markets were also trading in red.

The BSE Sensex is currently trading at 36377.68, down by 106.65 points or 0.29% after trading in a range of 36202.90 and 36423.57. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.08%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.22%, Industrials up by 0.21%, IT up by 0.16%, Auto up by 0.15% and Consumer Disc up by 0.07%, while Metal down by 1.28%, Telecom down by 1.07%, Power down by 0.82%, FMCG down by 0.73% and Utilities down by 0.71% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.54%, Tata Motors up by 1.58%, Mahindra & Mahindra up by 1.47%, Asian Paints up by 1.43% and Infosys up by 0.78%. On the flip side, Vedanta down by 2.13%, Bharti Airtel down by 1.83%, Wipro down by 1.25%, Axis Bank down by 1.22% and Reliance Industries down by 1.17% were the top losers.

Meanwhile, the government think-tank, NITI Aayog has said that the factors like better compensation to banking correspondents, facilitating paperless banking and introducing financial literacy chapters in school curricula will spur financial inclusion in the country. However, it pointed out the constraints like--lack of financial literacy, high cost of banking services & excessive regulatory requirements--in achieving the financial inclusion.

In its 'Strategy for New India @75' document, the think-tank mentioned about the initiatives being taken by the government through many flagship schemes to promote financial inclusion and provide financial security to empower the poor and unbanked in the country. It also said that efforts to improve financial literacy should be complemented by mass media campaigns to spread information on financial products and how they are used.

Besides, NITI Aayog highlighted that the promotion of Aadhaar and direct benefit transfer schemes facilitate financial inclusion, further noting that the issue of inadequate training is being addressed by the Reserve Bank of India (RBI) which has developed a framework for certification for both basic and advanced levels.

The CNX Nifty is currently trading at 10938.00, down by 29.30 points or 0.27% after trading in a range of 10880.05 and 10947.80. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 3.73%, HPCL up by 2.27%, Indiabulls Housing Finance up by 2.09%, BPCL up by 1.84% and Asian Paints up by 1.66%. On the flip side, Grasim Industries down by 2.61%, Vedanta down by 2.10%, Bharti Airtel down by 2.01%, Hindalco down by 1.96% and Wipro down by 1.60% were the top losers.

All Asian markets were trading in red; Straits Times lost 18.09 points or 0.59% to 3,040.56, Shanghai Composite declined 13.29 points or 0.52% to 2,536.27, Hang Seng decreased 241.86 points or 0.94% to 25,623.53, KOSPI fell 18.72 points or 0.9% to 2,060.12, Nikkei 225 slipped 595.34 points or 2.84% to 20,392.58, Jakarta Composite dropped 26.00 points or 0.42% to 6,150.09 and Taiwan Weighted was down by 108.69 points or 1.11% to 9,674.52.

All European markets were trading in red; UK’s FTSE 100 fell 83.79 points or 1.24% to 6,682.15, Germany’s DAX lost 140.56 or 1.31% points to 10,625.65 and France’s CAC was down by 70.87 points or 1.48% to 4,706.58.