Benchmarks end lackluster trade with marginal losses

Friday turned-out to be a lackluster day of trade for Indian equity benchmarks, with frontline gauges ending the session with marginal losses. Traders remain concerned throughout the day tracking weakness in global markets after the European Central Bank slashed its economic growth forecast, citing external uncertainties. Markets started the session on pessimistic note, as market participants remained concern about a report that the government may be staring at higher-than-projected deficit for the current fiscal with country's direct tax revenue expected to fall short by Rs 60,000 to 70,000 crore over the revised target of Rs 12 lakh crore for FY19. As per the report, the direct tax revenue growth is at 12.2 per cent so far as against revised full year aim of 19.8 per cent. Anxiety also prevailed amongst investors, as CARE Ratings in its report said that India has of late seen a slight revival in the investment cycle, but that is primarily driven by the increased government spending, and not so much by the private sector. There are also concerns such as a sharp rise in number of investment projects dropped midway.

However, losses remain capped as some solace came with Commerce and Industry Minister Suresh Prabhu’s statement that the country’s goods export will touch $330 billion in 2018-19, which will be the highest ever. He said the country's merchandise exports have seen high growth in the past six years through sector-specific interventions, focused export promotion initiatives, and quick resolution of issues. Meanwhile, the Reserve Bank of India (RBI) notified the norms for banks with regards to two per cent interest subvention or subsidy for short-term crop loans during 2018-19 and 2019-20. The Centre has already approved the scheme. Under the scheme, an additional two per cent interest subvention is provided to farmers repaying loans promptly.

Weak opening in European markets too dampened sentiments amid fears of a slowing global economy. Risk appetite faded after ECB President Mario Draghi said the economy was in a period of continued weakness and pervasive uncertainty. Investors also await US payrolls data for February due later in the day that may show a moderation in hiring due to external uncertainties. All the Asian counters ended in red terrain on the back of an overnight slide on Wall Street, as investors grappled with fresh concerns over the state of the global economy.

Back home, auto stocks edged lower on report that domestic passenger vehicle (PV) sales declined 1.11 per cent to 2,72, 284 units in February from 2,75,346 units in the same month the previous year. Textile industry stocks remained in focus with report that the Union Cabinet has approved a scheme for rebate of all state and central embedded levies for apparel and made-up textile segments, which would make shipments zero-rated, thereby boosting the country's competitiveness in export markets. However, power sector stocks edged higher with report that the government has cleared investment proposals worth over Rs 31,560 crore in power projects, including two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir. Meanwhile, shares of Arvind Fashions, the de-merged business of Arvind, got listed at Rs 591.75 on BSE. The scrip gained 5 per cent over its listing price to trade at Rs 621.30.

Finally, the BSE Sensex shed 53.99 points or 0.15% to 36,671.43, while the CNX Nifty was down by 22.80 points or 0.21% to 11,035.40.

The BSE Sensex touched a high and a low of 36,753.59 and 36,592.93, respectively and there were 13 stocks advancing against 17 stocks declining, while 1 stock remain unchanged on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.08%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Utilities up by 1.09%, Power up by 0.96%, Consumer Durables up by 0.54%, FMCG up by 0.16% and Telecom was up by 0.10%, while Metal down by 1.57%, IT down by 0.88%, TECK down by 0.79%, Capital Goods down by 0.69%, Industrials was down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 4.28%, Bajaj Auto up by 1.38%, Bajaj Finance up by 1.13%, Sun Pharma up by 0.92% and ITC up by 0.69%. On the flip side, Tata Motors down by 3.99%, Tata Motors - DVR down by 3.42%, HCL Tech down by 2.53%, Tata Steel down by 2.43% and Vedanta down by 2.02% were the top losers.

Meanwhile, lauding success of the government reforms in increasing employment, the Confederation of Indian Industry (CII) has made a prediction that Indian eight sectors -- retail, construction, transport and logistics, tourism and hospitality, handlooms and handicrafts, textiles and apparels, food processing, and automotive--are likely to generate over 10 crore jobs by 2025.

CII President Rakesh Bharti Mittal said that with skill levels rising and substantial growth in startups and new businesses, the quality of jobs is being also enhanced, including through higher incomes. He further listed the various measures like promotion of ease of doing business, tax rates cut for smaller enterprises to 25% & reduction in interest rates, which are creating the right atmosphere for new businesses to flourish, particularly SMEs.

Besides, CII President noted that the social security scheme numbers of EPFO reflect the rising offtake of new jobs in the formal sector and this is in line with the estimates for increase in employment in CII's feedback from large companies.

The CNX Nifty traded in a range of 11,049.00 and 11,008.95. There were 22 stocks advancing against 27 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were NTPC up by 3.97%, GAIIL India up by 1.79%, Eicher Motors up by 1.74%, Ultratech Cement up by 1.44% and UPL up by 1.44%. On the flip side, Tata Motors down by 4.54%, Wipro down by 4.18%, HCL Tech down by 2.66%, Tata Steel down by 2.48% and Indiabulls Housing Finance down by 2.37% were the top losers.

European markets were trading in red; UK’s FTSE 100 fell 58.08 points or 0.81% to 7,099.47, France’s CAC dropped 26.40 points or 0.50% to 5,241.52 and Germany’s DAX was down by 78.29 points or 0.68% to 11,439.51.

Asian markets ended lower on Friday after the European Central Bank (ECB) downgraded its 2019 GDP forecast and China reported worse than expected trade data for the month of February. Investors also looked ahead to the release of the US Labor Department's closely-watched monthly jobs report for February later in the day. Chinese shares ended lower, after official data showed Chinese exports plummeted 20.7 percent in February from a year earlier, reflecting weaker demand and distortions from the Lunar New Year holiday. That was far below expectations for a 4.8 percent drop. Imports fell 5.2 percent after a 1.5 percent fall in January. Further, Japanese shares settled in red, as a downward revision of the ECB's growth/ inflation projections as well as weak Chinese data sapped investors' appetite for risk. Meanwhile, a raft of domestic data proved to be a mixed bag.