Sensex, Nifty near day’s low

Key Indian benchmarks saw further fall in late afternoon session, with Sensex and Nifty losing more than 300 and 100 points, respectively, tracking weak European markets. Losses led by almost all the sectoral indices along with weakness of broader indices, weighed on the domestic sentiments. Trade was muted with a private report stating that global economic growth is expected to slow down in 2019, as tighter monetary policy, weaker earnings growth and political challenges confront the world's major economies. The report said that for the year ahead that it expected global economic growth to slow to 3.6 percent in 2019, after seeing a growth of 3.8 percent in 2018. Traders paid no heed towards Finance Minister Arun Jaitley’s statement that Rs 80,000 crore has been recovered by creditors in 66 cases resolved by NCLT and around Rs 70,000 crore more is likely to be realised by March-end.

On the sectoral front, NBFC companies stocks were in focused ahead of Reserve Bank Governor Shaktikanta Das’ meetings with MSME associations and representatives of NBFCs next week, while stocks related to the textile industry declined, amid report that Indian textile companies face higher trade barriers, compared to other competing countries like Bangladesh, Vietnam and Pakistan, in the US and European Union. Construction & Engineering industry stocks fell, even though ICRA gave a stable outlook to the construction sector, on the back of strong order inflow in the last couple of years and a huge pipeline of projects to be awarded in the infrastructure segment.

On the global front, European markets were trading in red, as Eurozone manufacturing expanded at the weakest pace since early 2016 in December as new orders fell for a third month and business confidence eroded to a six-year low. As per results of the survey by IHS Markit, the final Eurozone Manufacturing Purchasing Managers' Index, or PMI, was 51.4, unchanged from the flash, but lower than November's 51.8. Asian markets were also trading in red.

The BSE Sensex is currently trading at 35564.54, down by 326.98 points or 0.91% after trading in a range of 35520.47 and 35999.66. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.92%, while Small cap index was down by 0.46%.

The lone gaining sectoral index on the BSE was Telecom up by 0.06%, while Metal down by 2.11%, Oil & Gas down by 1.75%, Basic Materials down by 1.49%, Capital Goods down by 1.47% and PSU down by 1.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 0.82%, Asian Paints up by 0.57%, Hindustan Unilever up by 0.20% and HCL Tech. up by 0.05%. On the flip side, ONGC down by 3.59%, Mahindra & Mahindra down by 2.90%, Vedanta down by 2.43%, Tata Steel down by 2.29% and HDFC down by 2.17% were the top losers.

Meanwhile, a day after allowing loan restructuring plan, the Reserve Bank of India (RBI) has set up the eight-member committee to suggest long-term solutions for the economic and financial sustainability of the micro, small and medium enterprises (MSME) sector.

The committee headed by former Sebi chairman U K Sinha will also examine the factors affecting the timely and adequate availability of finance to the sector and it will submit its report by the end of June 2019. Besides, the committee will review the current institutional framework in place to support the MSME sector and will also propose measures for leveraging technology in accelerating growth of the sector.

Meanwhile, RBI had allowed a one-time restructuring of existing debt up to Rs 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets. Accordingly, the decision of RBI will help the MSMEs which are facing cash crunch in the wake of demonetisation and GST implementation.

The CNX Nifty is currently trading at 10680.70, down by 111.80 points or 1.04% after trading in a range of 10667.55 and 10814.05. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 1.89%, Bajaj Auto up by 0.71%, Asian Paints up by 0.55%, Hindustan Unilever up by 0.19% and GAIL India up by 0.16%. On the flip side, Eicher Motors down by 4.00%, Indian Oil Corporation down by 3.64%, Tech Mahindra down by 3.60%, ONGC down by 3.26% and HPCL down by 3.20% were the top losers.

Asian markets are trading mostly in red; Straits Times declined 24.48 points or 0.81% to 3,014.41, HANG SENG dropped 65.99 points or 0.26% to 25,064.36, Shanghai Composite lost 0.93 points or 0.04% to 2,464.36, Taiwan Weighted fell 61.72 points or 0.65% to 9,492.42 and KOSPI was down by 16.30 points or 0.81% to 1,993.70. On the flip side, Jakarta Composite gained 39.83 points or 0.64% to 6,221.01.

All European markets were trading in red; UK’s FTSE 100 lost 10.66 points or 0.16% to 6,723.57, Germany’s DAX fell 84.69 or 0.80% points to 10,495.50 and France’s CAC was down by 34.49 points or 0.74% to 4,654.90.