Benchmarks manage to keep their head above water

Indian equity benchmarks are trading slightly in green, somehow managing to keep their head above water in early deals on Tuesday. Traders took some support with the Reserve Bank of India’s (RBI) latest data showing that foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore. As per data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. However, gains remain capped on account of weak global cues as hopes of US-China trade deal were again hit after the United States charged Chinese telecom firm Huawei with bank fraud and for conspiring to steal trade secrets.

Meanwhile, the US markets settled lower on Monday as investors confronted the latest signs that economic malaise in China is crimping corporate profits in the US. Asian markets are trading mostly in red on Tuesday on the back of fresh concerns over a slowing Chinese economy and renewed tensions between Washington and Beijing.

Back home, steel sector stocks remained in focus with World Steel Association’s report that India has replaced Japan as world's second largest steel producing country, while China is the largest producer of crude steel accounting for more than 51 per cent of production. In scrip specific developments, Aurionpro Solutions gained on pioneering automated fare collection system in Noida metro project and Vodafone Idea surged on entering into strategic partnership with Sun TV Network.

The BSE Sensex is currently trading at 35671.34, up by 14.64 points or 0.04% after trading in a range of 35532.53 and 35718.90. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.02%, while Small cap index was down by 0.09%.

The top gaining sectoral indices on the BSE were Telecom up by 0.60%, Healthcare up by 0.47%, Basic Materials up by 0.43%, Metal up by 0.36% and Bankex was up by 0.31%, while Utilities down by 0.70%, Energy down by 0.48%, Power down by 0.39%, Capital Goods down by 0.35% and Realty was down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.65%, Sun Pharma up by 1.52%, ICICI Bank up by 1.08%, SBI up by 1.03% and Hero MotoCorp up by 0.85%. On the flip side, Power Grid Corporation down by 2.02%, Reliance Industries down by 0.76%, Infosys down by 0.61%, HDFC Bank down by 0.56% and NTPC down by 0.54% were the top losers.

Meanwhile, the Reserve Bank of India’s (RBI) data on ‘Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18’ has showed that during the fiscal year 2017-18 (FY18), foreign direct investment (FDI) recorded a healthy jump of 18% to Rs 28.25 lakh crore. As per the data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said the data released are the provisional results of 2017-18.

The report stated that as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. Overseas direct investment (ODI) by Indian companies increased 5% to Rs 5.28 lakh crore. FDI companies witnessed a substantial increase in other investment liabilities, largely due to the increase in trade credit.

The census showed that Mauritius continued to be the largest source of FDI in India (19.7%) followed by the US, the UK, Singapore and Japan. In case of overseas investment by Indian companies, Singapore (17.5%) was the major destination, followed by the Netherlands, Mauritius and the US.

Manufacturing sector had majority share in total FDI. ‘Information and communication services’ and ‘financial and insurance activities’ were other major recipients of FDI. In the census participating companies, 15,104 were common from the previous census round and 5,628 reported for the first time. Besides, 1,916 companies that reported in the previous round did not report in the latest round.

The CNX Nifty is currently trading at 10665.15, up by 3.60 points or 0.03% after trading in a range of 10616.85 and 10672.10. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 3.68%, Ultratech Cement up by 2.63%, Bajaj Finance up by 2.14%, Sun Pharma up by 1.59% and JSW Steel up by 1.40%. On the flip side, Indiabulls Housing down by 4.80%, Power Grid Corporation down by 1.92%, GAIL India down by 1.82%, UPL down by 1.01% and Reliance Industries down by 0.83% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 declined 112.97 points or 0.55% to 20,536.03, Straits Times dropped 17.70 points or 0.55% to 3,181.80, Hang Seng shed 163.80 points or 0.59% to 27,413.16, Taiwan Weighted tumbled 105.90 points or 1.06% to 9,907.43, KOSPI slipped 4.78 points or 0.22% to 2,172.52 and Shanghai Composite was down by 13.04 points or 0.50% to 2,583.94. On the flip side, Jakarta Composite was up by 3.77 points or 0.06% to 6,462.48.