Benchmarks trade lower in early noon session

Indian benchmarks were trading lower in early noon session on account of selling in front line counters in absence of any upside triggers. Selling in IndusInd Bank, Larsen & Toubro and Power Grid Corporation dragged the markets lower, with Sensex and Nifty losing around 0.68% and 0.71% respectively. Sentiments remained bearish as the Reserve Bank remained a net seller of dollars in November 2018, as it sold USD 644 million of the greenback on a net basis in the spot market, according to the latest data from the Central bank. As against this, in November 2017, the Central bank had purchased USD 2.570 billion from the spot market and sold USD 1.706 billion, while in the reporting month, the monetary authority bought USD 3.127 billion from the spot market, and sold USD 3.771 billion. Investors failed to get any relief with a report that in a consumer-friendly measure, the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer.

On the global front, all the Asian markets are trading in red, as investors kept a wary eye on looming Chinese trade data on increasing signs a slowdown in the world’s second-biggest economy is dragging on global growth.  Back on street, NITI Aayog report penning that India plans to achieve electric mobility by 2030 and welcomes Chinese industries participation and investment in the expansion of Electric Vehicles (EV) Market. In scrip specific development, Jammu & Kashmir Bank gained on reporting 43.16% rise in its net profit at Rs 103.75 crore for the quarter ended December 31, 2018 as compared to Rs 72.47 crore for the same quarter in the previous year. Banks revenue grew by 20.97% at Rs 2,166.22 crore for Q3FY19 as compared Rs 1,790.77 crore for the corresponding quarter previous year.

The BSE Sensex is currently trading at 35763.83, down by 246.01 points or 0.68% after trading in a range of 35735.24 and 36124.94. 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 0.66%, while Small cap index was down by 0.48%.

The few gaining sectoral indices on the BSE were IT up by 0.27%, TECK up by 0.14% and Healthcare was up by 0.09%, while Capital Goods down by 1.66%, Utilities down by 1.31%, Industrials down by 1.14%, Power down by 1.11% and Metal was down by 1.06% were the losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.16%, Infosys up by 2.32%, Sun Pharma up by 0.63% and Hindustan Unilever was up by 0.17%. On the flip side, Indusind Bank down by 2.82%, Larsen & Toubro down by 2.36%, Power Grid Corporation down by 1.62%, Axis Bank down by 1.53% and HDFC down by 1.47% were the top losers.

Meanwhile, commerce and industry minister Suresh Prabhu has said that the government will soon come out with a new industrial policy that will link India with the global supply-chain and will be mutually beneficial. He also said that businesses can only grow when there are partnerships among several other geographies. He said “manufacturing cannot happen end-to-end only in one geography; it has to be part of a global value- chain, global supply-chain. And that is why we are discussing and finalised from my ministry side, a new industrial policy that's awaiting Cabinet approval, which focuses developing mutually beneficial value chain and supply-chain.”

Prabhu said “it is especially important when we are working towards a $10-trillion economy by 2035, when we see great opportunities for all countries to participate. Because no country can grow in isolation. So if we were to have a $-trillion manufacturing GDP, a good part of that could be sourced and worked with so many other countries.” In the services sector, which is the key export segment for the nation worth over billions of dollars, the minister said 12 sectors have been identified. On agriculture, he said, government has already approved a comprehensive “Agriculture Export Policy” aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains.

The minister Informed that they have already worked out on plans which are mutually beneficial where they produce under the quality control regime of the importing countries. He also said that the government has prepared a plan that each district will grow by 3-4 percent more than the normal growth to help the overall economy clock double-digits growth. He added “our strategy is grass-roots development, from grass- roots to global, manufacturing to services, farming to value added and from FDI to investment by India in other countries, is the objective of our trade policy”.

The CNX Nifty is currently trading at 10718.35, down by 76.60 points or 0.71% after trading in a range of 10709.10 and 10808.00. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.10%, Infosys up by 2.46%, Bharti Infratel up by 1.70%, Sun Pharma up by 0.55% and Dr. Reddys up by 0.23%. On the flip side, GAIL India down by 2.75%, Indusind Bank down by 2.68%, Larsen & Toubro down by 2.31%, Wipro down by 2.21% and JSW Steel was down by 1.82% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 421.14 points or 1.58% to 26,246.13, Jakarta Composite dropped 54.88 points or 0.86% to 6,306.59, Straits Times trembled 14.31 points or 0.45% to 3,184.34, Shanghai Composite declined 18.01 points or 0.71% to 2,535.82, KOSPI fell 14.30 points or 0.69% to 2,061.27 and Taiwan Weighted was down by 51.18 points or 0.52% to 9,708.22.