Bourses pare most of losses

Indian equity bourses pared most of their losses in late afternoon session but remained in red terrain, on the back of weak cues from European markets. Domestic sentiments continued to be pessimistic, as Fitch Solutions, the research arm of Fitch Group, projected the government's fiscal deficit to overshoot the budgeted target by 0.2 percent to 3.6 percent of GDP in 2019-20 fiscal. It said that 2019-20 Budget appears to show a strong populist bent in the run up to the General election due by May 2019. Adding anxiety among the investors, the commerce and industry ministry data showed that foreign direct investment (FDI) into India has declined 11 percent to $ 22.66 billion during April-September period of the current fiscal. The foreign fund inflows during April-September 2017-18 stood at $ 25.35 billion. On the sectoral front, stocks related to the sugar industry were trading lower, after Indian Sugar Mills Association (ISMA) latest report said that sugar production is estimated to decline to 307 lakh tonnes in 2018-19 marketing year (October-September) from record 325 lakh tonnes in the previous year.

On the global front, European markets were trading in red, as UK manufacturing growth slowed more-than-expected in January to its lowest level in three months. The survey data from IHS Markit showed that the IHS Markit/CIPS Purchasing Managers' Index for manufacturing fell to 52.8 from 54.2 in December. Asian markets were trading in green, as investors await further developments on the US-China trade dispute following meetings in Washington last week. US President Donald Trump and Chinese President Xi Jinping are expected to meet on February 27 and 28 in the coastal city of Da Nang to address issues that are more contentious.

The BSE Sensex is currently trading at 36453.05, down by 16.38 points or 0.04% after trading in a range of 36225.48 and 36488.53. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.94%, while Small cap index was down by 1.21%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 1.32%, Energy up by 0.95% and Oil & Gas up by 0.06%, while Telecom down by 1.94%, Metal down by 1.81%, Utilities down by 1.78%, Power down by 1.73%, Basic Materials down by 1.43% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.68%, Bajaj Auto up by 2.09%, Reliance Industries up by 1.66%, HDFC Bank up by 0.76% and Kotak Mahindra Bank up by 0.71%. On the flip side, Tata Steel down by 3.00%, Yes Bank down by 2.99%, Mahindra & Mahindra down by 2.34%, Sun Pharma down by 2.19% and Power Grid down by 2.15% were the top losers.

Meanwhile, expressing worries, a construction equipment makers' body, Indian Construction Equipment Manufactures' Association (ICEMA) President Arvind Garg has said that growth of the construction equipment sector declined to 10 percent, after liquidity crisis gripped NBFCs following the IL&FS default. He further added that the sector was growing at around 20 percent prior to the IL&FS crisis.

Arvind Garg underlined the facts and figures related to the sector, noting that almost 90-95 percent of construction equipment is financed. NBFCs are the largest players in this sector with about 70-75 percent share of financing. Besides, he pointed out that lenders themselves were now facing liquidity challenges, so they have become cautious about lending.

However, ICEMA President mentioned about the efforts being taken by all the stakeholders to overcome this crisis and said that the same will be eased by March if there is no stress in the system or other NBFCs.

The CNX Nifty is currently trading at 10883.55, down by 10.10 points or 0.09% after trading in a range of 10814.15 and 10893.00. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 4.12%, ONGC up by 2.79%, Eicher Motors up by 2.42%, Bajaj Auto up by 2.21% and Reliance Industries up by 1.62%. On the flip side, Indiabulls Housing Finance down by 5.18%, Hindalco down by 4.02%, Tata Steel down by 3.32%, Yes Bank down by 3.07% and Cipla down by 2.68% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 95.38 points or 0.46% to 20,883.77, Hang Seng increased 59.47 points or 0.21% to 27,990.21 and Shanghai Composite gained 33.66 points or 1.3% to 2,618.23. On the flip side, Straits Times trembled 4.12 points or 0.13% to 3,184.56 and Jakarta Composite dropped 51.92 points or 0.79% to 6,486.72.

European markets were trading mostly in red; France’s CAC decreased 17.99 points or 0.36% to 5,001.27 and Germany’s DAX lost 23.56 points or 0.21% to 11,157.10. On the flip side, UK’s FTSE 100 was up by 4.28 points or 0.06% to 7,024.50.