Indian bourses continue to trade weak in early noon session

Indian bourses continued their weak trade in early noon session on account of selling witnessed in front line blue chip stocks. Selling in Tata Steel, Yes Bank and Indusind Bank dragged the markets lower, with Sensex and Nifty losing around 0.42% and 0.46% respectively. The sentiments remained sluggish with Moody's Investors Service report that the Indian government will find it difficult to meet the fiscal deficit target of 3.4% in 2019-20 (FY20). Observing that government's debt is ‘stubbornly high’ as a percentage of Gross Domestic Product (GDP). Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Sentiments remained downbeat as government has reduced the allocation for Startup India programme in the Budget 2019-20 but added more monies to the Make in India kitty. The allocation for Startup India programme has been slashed to Rs 25 crore for 2019-20 from the revised estimate of Rs 28 crore in 2018-19.  However, Union Minister Arun Jaitley said that Rs 500 a month cash dole to small farmers may be increased in the future as the government’s resources grow and said states can top up this amount with their own income support schemes.

On the global front, Asian markets were trading mixed, after staying near a four-month high at Wall Street’s tepid pre-weekend performance, while the dollar was supported against the yen following strong US jobs and manufacturing data. Back on streets, Future Lifestyle Fashions gained on reporting 46.29% rise in its net profit at Rs 55.08 crore for the quarter ended December 31, 2018 as compared to Rs 37.65 crore for the same quarter in the previous year. However, NOCIL declined on reporting marginal fall of 0.71% in its net profit at Rs 44.65 crore for the quarter under review as compared to Rs 44.97 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 36315.02, down by 154.41 points or 0.42% after trading in a range of 36273.67 and 36456.22. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.66%, while Small cap index was down by 0.89%.

The few gaining sectoral indices on the BSE were Consumer Durables up by 2.06%, Energy up by 0.58%, and Oil & Gas was up by 0.03%, while Telecom down by 2.46%, Metal down by 1.92%, Utilities down by 1.54%, Basic Materials down by 1.42% and Power was down by 1.41% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.60%, Bajaj Auto up by 1.54%, Reliance Industries up by 0.94%, Hindustan Unilever up by 0.76% and HCL Tech was up by 0.29%. On the flip side, Tata Steel down by 3.87%, Yes Bank down by 2.53%, Indusind Bank down by 2.48%, Mahindra & Mahindra down by 2.36% and Bharti Airtel was down by 2.35% were the top losers.

Meanwhile, Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta has expressed hopes that the new online National Logistics Portal (NLP) and forthcoming national policy would help boost India’s export growth. He also said that the sector assumes significance as reduction in logistics cost and time would help promote competitiveness of domestic products in global markets.

FIEO president has stated that the draft comprehensive logistics policy and portal, which will be unveiled soon, will add to furtherance and efficiency of the logistics industry in the country. He noted that logistics plays a key role in boosting exports.

Gupta further informed that over 130 logistics companies and their delegates from 27 countries exchanged business prospects and opportunities to make Indian logistics sector global. Besides, he said that FIEO also signed MoUs with Ceylon National Chamber of Industries and Kabul Chamber of Commerce and Industries to further promote commerce and trade. 

The CNX Nifty is currently trading at 10843.80, down by 49.85 points or 0.46% after trading in a range of 10829.90 and 10878.75. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Titan up by 5.05%, Eicher Motors up by 3.14%, ONGC up by 2.82%, Bajaj Auto up by 1.55% and Dr. Reddys Lab was up by 1.08%. On the flip side, Tata Steel down by 4.11%, Hindalco down by 2.91%, Bharti Airtel down by 2.55%, Yes Bank down by 2.42% and Mahindra & Mahindra was down by 2.35% were the top losers.

Asian markets were trading mixed; Hang Seng increased 59.47 points or 0.21% to 27,990.21 and Nikkei 225 was up by 73.09 points or 0.35% to 20,861.48.  On the other hand, Straits Times trembled 4.12 points or 0.13% to 3,184.56 and Jakarta Composite was down by 37.30 points or 0.57% to 6,501.34.