Markets turn negative

Indian equity bourses erased all of their gains in late afternoon session to turn negative, tracking weak European markets. Domestic sentiments got hit after former RBI Governor Raghuram Rajan expressed doubts over Indian economy growing at 7% when not enough jobs were being created. Heavy selling in Utilities and Power stocks along with weak cues from other Asian markets also weighed on the markets. However, downside remained capped, with Vice President of India, M. Venkaiah Naidu’s statement that tax reforms were slowly increasing India’s tax base and shifting the social norms from one where it was alright to avoid taxes to one where the majority is willing to pay.

On the sectoral front, realty sector stocks were trading lower, despite reports that housing sales are expected to rise in 2019, as the realty market is on a recovery path after absorbing the impact of policy reforms like RERA, GST and note ban. The report further said that 200 million square feet of space will be added in 2019 across all segments including housing, office, retail and logistics. However, selected stocks of metal sector gained, aided by to global steel body World Steel Association’s report that the country's crude steel output in February grew 2.3 per cent to 8.74 million tonne (MT) from 8.54 MT in the year-ago month.

On the global front, European markets were trading in red, even though France's consumer confidence strengthened for a third consecutive month in March to its highest level in seven months, led by modest improvement in expectations on personal finances and savings, despite rising fears of unemployment. The survey data from INSEE showed that the consumer confidence index rose to 96 from 95 in February. The score was in line with street expectations. Asian markets were also trading in red.

The BSE Sensex is currently trading at 38274.54, up by 41.13 points or 0.11% after trading in a range of 38001.34 and 38475.93. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.89%, while Small cap index up by 0.58%.

The top gaining sectoral indices on the BSE were Bankex up by 1.02%, Basic Materials up by 0.49%, Capital Goods up by 0.38%, Metal up by 0.33% and Consumer Durables up by 0.32%, while Utilities down by 0.81%, Power down by 0.55%, Energy down by 0.54%, Healthcare down by 0.43% and Oil & Gas down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 5.34%, Indusind Bank up by 4.88%, SBI up by 1.63%, Bajaj Auto up by 1.19% and HCL Tech. up by 1.15%. On the flip side, NTPC down by 1.71%, Power Grid down by 1.60%, Tata Motors down by 1.13%, HDFC down by 1.02% and Bharti Airtel down by 0.98% were the top losers.

Meanwhile, calling for a faster and more inclusive growth, Vice President of India, M. Venkaiah Naidu has said that tax reforms were slowly increasing India’s tax base and shifting the social norms from one where it was alright to avoid taxes to one where the majority is willing to pay.

Naidu further termed knowledge as the key driver of the growth of Indian Economy going ahead and will play a vital role in improving the living conditions of the people. He also highlighted the rapid economic progress and fiscal consolidation that India had undergone. He further added that an emerging economy like India would constantly bring in new laws and regulations at par with international best practices.

Besides, Vice President noted that India has to reach out to other countries to access cost-effective technology, investment, and energy to manage its domestic challenges. He called for appropriate economic and foreign policies to navigate through this emerging and uncertain landscape.

The CNX Nifty is currently trading at 11478.45, down by 4.80 points or 0.04% after trading in a range of 11413.00 and 11546.20. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 5.24%, Indusind Bank up by 4.90%, Indiabulls Housing Finance up by 2.47%, JSW Steel up by 2.38% and SBI up by 1.75%. On the flip side, HPCL down by 2.73%, NTPC down by 2.10%, Power Grid down by 1.60%, Eicher Motors down by 1.46% and Tata Motors down by 1.30% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 declined 49.66 points or 0.23% to 21,378.73, Jakarta Composite dropped 25.26 points or 0.39% to 6,444.74, Taiwan Weighted dropped 16.50 points or 0.16% to 10,542.70, KOSPI fell 3.18 points or 0.15% to 2,145.62 and Straits Times lost 0.39 points or 0.01% to 3,199.89. On the flip side, Shanghai Composite gained 13.18 points or 0.44% to 3,010.28 and Hang Seng was up by 175.67 points or 0.61% to 28,742.58.

European markets were trading mostly in red; France’s CAC fell 10.56 points or 0.20% to 5,296.82 and Germany’s DAX was down by 13.05 points or 0.11% to 11,406.43, while UK’s FTSE 100 was up by 6.74 points or 0.09% to 7,203.03.