Key indices continue to trade with marginal losses

Key benchmark indices continued to trade with marginal losses in afternoon trade, dragged by Energy, Oil & Gas and Telecom stocks amid weak global cues. Sentiments remained pessimistic with Fitch Ratings in its latest report cut India’s economic growth forecast for the next financial year starting April 1, to 6.8% from its previous estimate of 7%, on weaker than expected momentum in the economy. Some anxiety also came in with ICRA’s report that as many as 52 road projects worth Rs 37,019 crore were sold between 2015 and 2018, due to liquidity crisis faced by their promoters or the special purpose vehicles executing them. However, losses were limited, as traders got some relief the International Monetary Fund (IMF) stating that the country has been one of the fastest growing large economies in the world, with growth averaging about 7% over the past five years. But, it also said that more needs to be done on the reforms front. In the currency front, the rupee emerged strong, and was trading at 68.71 against US Dollar, higher by 12 paise. On the global front, Asian markets are trading mostly in red, as caution set in ahead of U.S.-China trade talks in Beijing next week.

The BSE Sensex is currently trading at 38310.00, down by 76.75 points or 0.20% after trading in a range of 38247.88 and 38564.71. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.10%, while Small cap index was down by 0.13%.

The top gaining sectoral indices on the BSE were Power up by 1.03%, Capital Goods up by 1.03%, Realty up by 0.94%, Utilities up by 0.73% and Industrials up by 0.49%, while Energy down by 1.05%, Oil & Gas down by 0.76%, Telecom down by 0.63%, Healthcare down by 0.45% and Auto down by 0.43% were top the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.40%, Larsen & Toubro up by 1.98%, Yes Bank up by 1.27%, Tata Steel up by 1.06% and Power Grid up by 0.79%. On the flip side, Coal India down by 1.92%, HCL Tech. down by 1.58%, Maruti Suzuki down by 1.15%, Bajaj Finance down by 1.12% and Reliance Industries down by 1.08% were the top losers.

Meanwhile, Fitch Ratings in its Global Economic Outlook has lowered India’s Gross domestic product (GDP) growth forecast to 6.8% for fiscal year 2020  from 7% estimated earlier, on the back of weaker than expected momentum in the economy. It said “while we have cut our growth forecasts for the next fiscal year (FY20, ending in March 2020) on weaker-than-expected momentum, we still see Indian GDP growth to hold up reasonably well, at 6.8%, followed by 7.1% in FY21.”

Earlier, in December, the rating agency cut the GDP growth forecast of the country to 7.2% for FY19 from 7.8%, citing higher financing cost and reduced credit availability. It has also cut growth forecasts for FY20 and FY21 to 7% from 7.3% and 7.1 percent from 7.3%, respectively. 

According to Fitch, the RBI has adopted a more dovish monetary policy stance and cut interest rates by 0.25 percentage at its February 2019 meeting, a move supported by steadily decelerating headline inflation. It said “we have changed our rate outlook and we now expect another 25 bp cut in 2019, amid protracted below target inflation and easier global monetary conditions than previously envisaged.” On the fiscal side, it noted that the budget for FY20 plans to increase cash transfers for farmers.

The CNX Nifty is currently trading at 11498.50, down by 22.55 points or 0.20% after trading in a range of 11478.20 and 11572.80. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.13%, Larsen & Toubro up by 2.13%, JSW Steel up by 2.02%, Yes Bank up by 1.33% and Titan Company up by 1.23%. On the flip side, HPCL down by 2.76%, BPCL down by 2.36%, Bharti Infratel down by 2.31%, Coal India down by 2.03% and HCL Tech down by 1.45% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 76.14 points or 0.26% to 28,995.42, Shanghai Composite shed 9.36 points or 0.3% to 3,092.10, Jakarta Composite dipped 3.91 points or 0.06% to 6,497.87 and Straits Times was down by 1.27 points or 0.04% to 3,212.38.

On the flip side, KOSPI rose 2.07 points or 0.09% to 2,186.95, Nikkei 225 added 18.42 points or 0.09% to 21,627.34 and Taiwan Weighted was up by 29.52 points or 0.28% to 10,639.07.