Local equities continue sluggish trend

Following weak global cues, local equity benchmarks continued to show a sluggish trend in morning session. Weakness was visible in the broader markets with the S&P BSE Mid-cap slipped around one third a percent and the S&P BSE Small-cap indices losing 0.05%. Sentiment on the street weakened as CARE Ratings reported 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. Some cautiousness also came with a report that India’s goods trade surplus with the US actually shrank for a second straight year through 2018. However, the downfall is arrested with Confederation of Indian Industry’s (CII) report that the government are creating new livelihoods across existing and emerging sectors, with eight segments of the economy alone expected to create over 10 crore jobs by 2025. Besides, the government has notified April 1 as the date for the implementation of doubling of GST exemption limit to Rs 40 lakh, which will benefit small and medium enterprises.

On the global front, Asian markets were trading in red, after the European Central Bank slashed its growth forecasts and launched an emergency round of policy stimulus, leaving investors fearing the worst for the global economy. Back home, the Reserve Bank of India (RBI) has 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 RBI said it has been decided to offer interest subvention of 2 per cent per annum to lending institutions.

The BSE Sensex is currently trading at 36675.75, down by 49.67 points or 0.14% after trading in a range of 36610.47 and 36753.59. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.34%, while Small cap index was down by 0.05%.

The top gaining sectoral indices on the BSE were Telecom up by 0.37%, Utilities up by 0.25%, Power up by 0.23%, Consumer Durables up by 0.05% and Capital Goods was up by 0.02%, while Metal down by 1.37%, Oil & Gas down by 0.77%, Basic Materials down by 0.68%, IT down by 0.53% and TECK was down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.60%, Mahindra & Mahindra up by 0.99%, SBI up by 0.92%, Bajaj Auto up by 0.81% and TCS was up by 0.73%. On the flip side, Tata Motors - DVR down by 3.16%, Tata Motors down by 3.09%, Coal India down by 1.38%, HCL Tech down by 1.30% and Infosys was down by 1.08% were the top losers.

Meanwhile, the government has approved over Rs 31,560 crore investment proposals for power projects. The projects included two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir. The thermal power plants in Buxar, Bihar, and Bulandshahr, Uttar Pradesh, are expected to become operational by 2023-24. Approval has been given to an investment of Rs 10,439.09 crore for the 2x660 MW Buxar Thermal Power Project (Buxar TPP) in Bihar.

The Buxar project will be implemented by SJVN Thermal Private, a wholly owned subsidiary of SJVN, a mini-ratna CPSU. The project is expected to generate substantial direct and indirect employment apart from various other socio-economic development in the project area. The Buxar TPP will start yielding benefits from 2023-24.

The government also gave nod to the investment proposal for a 2x660 MW Khurja Super Thermal Power Plant (STPP) in Bulandshahr at an estimated cost of Rs 11,089.42 crore and Amelia Coal Mine in the Singrauli district of Madhya Pradesh. The Khurja STPP, too, will start yielding benefits from 2023-24. Besides, the government has approved the investment for the construction of Kiru Hydro Electric Project (624 MW) by Chenab Valley Power Projects (CVPPPL) in Jammu and Kashmir. The project will be implemented at an estimated cost of Rs 4,287.59 crore which includes IDC and FC of Rs 426.16 crore and an infusion of equity of Rs 630.28 crore by NHPC in CVPPPL.

The CNX Nifty is currently trading at 11028.45, down by 29.75 points or 0.27% after trading in a range of 11009.60 and 11048.00. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.60%, Eicher Motors up by 1.67%, Titan Co up by 1.15%, Mahindra & Mahindra up by 0.88% and TCS was up by 0.73%. On the flip side, Wipro down by 3.55%, Tata Motors down by 3.38%, Hindalco down by 3.29%, Indian Oil Corporation down by 3.03% and ONGC was down by 1.45% were the top losers.

Asian markets were trading in red, Nikkei 225 slipped 420.14 points or 1.96% to 21,035.87, Hang Seng decreased 394.90 points or 1.37% to 28,384.55, Taiwan Weighted dropped 65.52 points or 0.64% to 10,246.16, KOSPI fell 22.72 points or 1.05% to 2,143.07, Shanghai Composite declined 90.20 points or 2.9% to 3,016.22, Straits Times trembled 22.09 points or 0.68% to 3,207.39 and Jakarta Composite was down by 51.62 points or 0.8% to 6,406.34.