Indian bourses trade marginally lower in afternoon deals

Erasing all of their gains, Indian equity indices were now trading marginally lower in afternoon session, on account of selling in frontline blue chip counters, despite advances in Asian peers on easing concerns about US-China trade talks. The sentiments turned pessimistic with a report that inflation seems to have become a double-edged sword for policy makers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone. However, losses were limited as some optimism remained among the traders with the industry body CII’s report which stated that the country is expected to witness strong economic growth in 2019, after it has emerged as the fastest growing major world economy this year despite growing global vulnerabilities. On the sectoral front, Healthcare sector was in focus with private report stating that healthcare sector may see further consolidation in 2019 with tightening of regulatory environment set to make it difficult for small players to stay afloat in a highly competitive market. In the currency front, the rupee emerged strong, and was trading at 69.79 against US Dollar, higher by 16 paise.

On the global front, Asian markets were trading in green, after US President Donald Trump reported “big progress” in trade talks with his Chinese counterpart. Back home, the BSE Sensex is currently trading at 36046.82, down by 29.90 points or 0.08% after trading in a range of 36033.95 and 36285.46. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.52%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Metal up by 1.46%, Basic Materials up by 0.89%, Consumer Durables up by 0.77%, Healthcare up by 0.53% and Realty up by 0.51%, while Telecom down by 0.51%, Energy down by 0.45%, Utilities down by 0.39%, Oil & Gas down by 0.29% and Power down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.69%, Vedanta up by 1.40%, Sun Pharma up by 1.13%, Tata Motors up by 0.82% and Tata Motors - DVR up by 0.82%. On the flip side, Power Grid down by 0.81%, NTPC down by 0.80%, Reliance Industries down by 0.66%, Kotak Mahindra Bank down by 0.61% and Bharti Airtel down by 0.54% were the top losers.

Meanwhile, Government think-tank NITI Aayog is planning to focus on steps crucial to push India’s economic growth, promote e-mobility as well as ensure expeditious implementation of the Modi government’s reform measures in the year 2019. NITI Aayog vice chairman Rajiv Kumar said “India will grow at around 7.8% in the next calendar year and investment cycle that has already started picking up will gather further strength and we will see more private investments.”

Kumar expressed hopes that liquidity crunch which has been effecting non-banking financial company (NBFC) sector would also be addressed and the credit allocation capacity of banks under the Prompt Corrective Action (PCA) would be enhanced. He noted that all of that will contribute to strengthening the investment cycle. He also said that many economic reforms undertaken by the Modi government has laid the foundation for high growth and the low inflation and the time is now to focus on their implementation.

NITI Aayog vice chairman further assured that some more policy reforms may be announced in the sectors such as e-mobility or in reducing import-dependency in energy sector and development of the North East region. He also pointed that “the first time you are getting 7.5% growth, with hardly any inflation. That makes it a very strong macro fundamental. That is the basis for achieving 9% growth by 2022-23.” 

The CNX Nifty is currently trading at 10857.00, down by 2.90 points or 0.03% after trading in a range of 10853.20 and 10923.55. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.35%, Tata Steel up by 1.87%, Hindalco up by 1.50%, Vedanta up by 1.35% and Titan up by 0.95%. On the flip side, Bharti Infratel down by 1.48%, NTPC down by 1.13%, Reliance Industries down by 0.68%, Bharti Airtel down by 0.57% and HDFC down by 0.50% were the top losers.

Asian markets were trading in green; Straits Times advanced 15.33 points or 0.5% to 3,068.76 and Hang Seng surged 341.50 points or 1.34% to 25,845.70.