Benchmarks continue to trade in red zone

Indian equity benchmarks are trading in red zone with weak cues from other Asian markets and foreign fund outflow. Profit booking in frontline blue chip stocks such as NTPC, Vedanta, ICICI Bank and HDFC pulled markets lower. Realty, Utilities and Power stocks were amongst the top losers on the BSE sectoral space. Meanwhile, depreciation in Indian rupee too dampened sentiment. Some pessimism also spread amongst investors as ICRA, a credit rating agency, in its latest report has said India Inc witnessed a dip in both revenue growth as well as margins in third quarter of current financial year (Q3FY19) as compared to the preceding quarter (Q2). However, when compared to the same period a year-ago, revenue growth has come in at a handsome pace, but margins crimped. Besides, anxiety remained on the street with report penning that India isn’t seeing any investment gains as global trade tensions disrupt supply chains. Foreign direct investment (FDI) in the third-largest Asian economy fell 7% in the nine months to December, signaling slowing investment before upcoming elections. Meanwhile, nearly 2 crore jobs were created in 16 months to December 2018, according to the payroll data of the Employees State Insurance Corporation (ESIC). The ESIC data is one of payroll numbers released by the Central Statistics Office (CSO) in its reports based on people joining various social security schemes run by Employees Provident Fund Organisation (EPFO) and Pension Fund Regulatory Development Authority (PFRDA).

On the global front, Asian markets were trading mostly in red, as investors waited to see if Washington and Beijing can clinch a trade deal, while the pound advanced on hopes UK Prime Minister Theresa May will delay a Brexit deadline. Back on home turf, in scrip specific development, Reality sector stocks are trading lower with CRISIL Research’s report that even as the latest GST cut on under-construction housing projects is expected to increase demand, real estate developers may see mixed results.

The BSE Sensex is currently trading at 35927.11, down by 286.27 points or 0.79% after trading in a range of 35714.16 and 36054.00. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.82%, while Small cap index was down by 1.12%.

The top losing sectoral indices on the BSE were Realty down by 1.82%, Utilities down by 1.27%, Power down by 1.18%, PSU down by 1.13%, Bankex down by 1.11%, while there were no gainers on the sectoral front.

The top gainers on the Sensex were Tata Motors up by 2.45%, TCS up by 1.22%, Tata Motors - DVR up by 0.95%, Hindustan Unilever up by 0.43% and Coal India was up by 0.28%. On the flip side, NTPC down by 2.06%, Vedanta down by 1.99%, ICICI Bank down by 1.84%, HDFC down by 1.68% and SBI was down by 1.59% were the top losers.

Meanwhile, NITI Aayog CEO Amitabh Kant has said that upliftment of over 100 aspirational districts can help Indian economy to grow at 9-10 percent over the next three decades as it is imperative to have equity for growth to sustain. As part of the NITI Aayog's vision, the 'Transformation of Aspirational Districts' programme aims to quickly and effectively transform these 115 districts.

Kant said “It is very important to focus on nutrition, learning outcomes and health. The prime minster's focus is on the 115 aspirational districts of India...you can't have growth without equity.” He noted that the broad contours of the programme are convergence of central and state government schemes, collaboration of central, state level 'Prabhari' officers and district collectors, and competition among districts driven by a mass movement. He pointed out that with states as the main drivers, this programme focuses on the strength of each district, identify low-hanging fruits for immediate improvement, measure progress, and rank districts.

Talking about the pharma sector, NITI Aayog CEO said that India entrepreneurship in the pharmacy sector has been truly top-class. He said “India has demonstrated its ability, and Ayushman Bharat is a great example of that. You will providing health facility to 500 million people, more than the population of USA, Europe, Mexico put together.” He stated that India has demonstrated its ability to provide medical health care at one-tenth the cost over the European and the American nations and that's a great example.

The CNX Nifty is currently trading at 10797.30, down by 82.80 points or 0.76% after trading in a range of 10729.30 and 10837.15. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.42%, TCS up by 1.32%, Ultratech Cement up by 1.07%, Indian Oil Corporation up by 0.79% and Bajaj Finserv was up by 0.58%. On the flip side, Indiabulls Housing down by 2.55%, NTPC down by 2.28%, Vedanta down by 2.07%, Adani Ports &Special down by 2.06% and ICICI Bank was down by 1.95% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 185.06 points or 0.64% to 28,774.24, Nikkei 225 slipped 78.84 points or 0.37% to 21,449.39, Jakarta Composite dropped 13.02 points or 0.2% to 6,512.34, Straits Times trembled 10.94 points or 0.33% to 3,261.41 and KOSPI was down by 5.13 points or 0.23% to 2,227.43.

On the other hand, Taiwan Weighted strengthened 0.62 points or 0.01% to 10,391.55 and Shanghai Composite was up by 12.27 points or 0.41% to 2,973.55.