Benchmarks continue to trade in negative territory

Indian benchmarks continued to trade in negative territory in early noon session, with Sensex and Nifty plunging 0.92% and 0.83% respectively, as market participants were seen squaring off positions ahead of December series F&O expiry due on Thursday. Selling in frontline blue chip stocks such Yes Bank, Indusind Bank, Sun Pharma and Bajaj Finance too weighed down sentiment, while buying in Asian Paints, Hero MotoCorp and ITC minimizing losses up to certain level. The rupee advanced against the US dollar, strength in the rupee limits profitability for exporters such as IT and pharma companies. Traders paid no heed to a private report that the government is considering several measures to support farmers in distress as pressure mounts for a nationwide loan waiver scheme ahead of the general election.  Meanwhile, Suresh Prabhu said that India is preparing a specific strategy for exports to each geography as part of plans to make 2019 a year when outward shipments would start driving the country's overall economic growth. On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs. 577.10 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs. 186.14 crore as per provisional data available with BSE.

On the global front, Asian markets were trading in red, as U.S. political uncertainty exacerbated worries over slowing global economic growth. Back home, IT stocks remained in focus as it is keeping hopes high for the New Year with plans afoot for big investments in automation and artificial intelligence (AI). For the industry body National Association of Software & Services Companies (Nasscom), 2018 has been the year of 'Digital at Scale' as IT firms focused on leveraging new technologies and ensuring sustainability by creating right skills with help from innovation, policies and partnerships.

The BSE Sensex is currently trading at 35145.05, down by 325.10 points or 0.92% after trading in a range of 35010.82 and 35443.99. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 1.18%, while Small cap index was down by 1.20%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.02%, while Realty down by 1.67%, Energy down by 1.34%, Bankex down by 1.14%, IT down by 1.12%, PSU was down by 1.03% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 0.29%, Hero MotoCorp up by 0.28%, ITC up by 0.22% and HCL Tech up by 0.05%. On the flip side, Yes Bank down by 3.32%, Indusind Bank down by 2.48%, Sun Pharma down by 2.17%, Bajaj Finance down by 1.96% and Reliance Industries was down by 1.80% were the top losers.

Meanwhile, the Ministry of Micro, Small and Medium Enterprise (MSME) has proposed to set up a governing council to ensure efficient delivery of all export-related interventions. The step is a part of its action plan to boost shipments from MSMEs. It has recommended a detailed analysis of various trade agreements, including FTAs and bilateral and multilateral trade agreements, to identify areas of concern for MSMEs in the strategic action plan titled 'Unlocking the Potential of MSME Exports'.

It further said that a study will be conducted of special economic zones and export promotion zones in the country to reassess their role and objectives as these are an essential constituent of Foreign Trade Policy and it is important to harness their potential. Moreover, it said that a tech-enabled online portal shall be developed featuring country-wise list of global products and services in demand and information on how to enter specific foreign markets. It will also have details on loans and credit offered by various financial institutions. Besides, it noted that a formal platform may also be created by the ministry to ensure that it is involved in all bilateral and multilateral trade negotiations which have an impact on the enterprises.

The governing council shall be chaired by Secretary, MSME and co-chaired by Development Commissioner in MSME Ministry. It shall comprise senior officials and members from MSME Ministry, Commerce Ministry, MSME Export Promotion Councils, Export Development Authorities, Commodity Boards, etc.

The CNX Nifty is currently trading at 10575.35, down by 88.15 points or 0.83% after trading in a range of 10534.55 and 10635.45. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.87%, Adani Ports &Special up by 1.20%, Titan Co up by 1.01%, Dr. Reddys Lab up by 0.87% and UPL up by 0.73%. On the flip side, Yes Bank down by 3.59%, Indiabulls Housing down by 2.61%, Sun Pharma down by 2.37%, Indusind Bank down by 2.35% and Bajaj Finance was down by 2.05% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 48.10 points or 0.5% to 9,478.99, Straits Times trembled 41.27 points or 1.35% to 3,009.79, Jakarta Composite dropped 32.92 points or 0.53% to 6,130.68, KOSPI fell 32.76 points or 1.59% to 2,022.25 and Shanghai Composite was down by 8.82 points or 0.35% to 2,496.00.

On the other hand, Nikkei 225 was up by 29.37 points or 0.15% to 19,185.11.