Local equities continue to show sluggish trend

Mirroring mixed global cues, local equity benchmarks continued to show a sluggish trend in morning session, with losses of over half a percent. Weakness was visible in the broader markets with the S&P BSE Mid-cap and the S&P BSE Small-cap indices losing around a percent each in trade. Investors took note of industry body of internet and mobile device companies' report that any ‘arbitrary’ ban on social media platforms and intermediaries could impede foreign direct investment and affect expansion of the digital India initiative. Traders ignored a report that India’s growth trajectory holds immense potential for global stakeholders to establish energy, infrastructure and technology collaboration with the country. Traders also shrugged off Employees’ Provident Fund Organisation’s (EPFO) payroll report that net employment generation in the formal sector almost trebled to 8.61 lakh in February compared to 2.87 lakh in the same month of last year. Besides, the government has extended the last date for filing summary sales return, GSTR-3B, for March month by three days until April 23.

On the global front, Asian markets were trading mixed, as traders took stock of recent data suggesting global growth may be stabilising, while oil prices spiked on a report the US is likely to ask all importers of Iranian oil to end their purchases or face sanctions. Back home, Arvind Panagariya has stated that India must focus on growth of labour-intensive sectors to create decent jobs for the masses as well as give ‘serious thought’ to privatising the public sector banks (PSBs).

The BSE Sensex is currently trading at 38882.45, down by 257.83 points or 0.66% after trading in a range of 38827.55 and 39158.22. There were 6 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.96%, while Small cap index was down by 0.84%.

The only gaining sectoral indices on the BSE were IT up by 0.71% and TECK was up by 0.47%, while Realty down by 2.52%, Oil & Gas down by 2.24%, Energy down by 1.68%, Auto down by 1.30% and PSU was down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.07%, HCL Tech up by 0.89%, Power Grid up by 0.57%, Infosys up by 0.57% and Larsen & Toubro was up by 0.17%. On the flip side, Yes Bank down by 3.45%, Bharti Airtel down by 1.90%, IndusInd Bank down by 1.80%, Axis Bank down by 1.74% and Kotak Mahindra Bank was down by 1.62% were the top losers.

Meanwhile, Counsellor in India’s Permanent Mission to the UN Ashish Sinha has said India’s growth trajectory holds immense potential for global stakeholders to establish energy, infrastructure and technology collaboration with the country.  He stated that India wanted to use growth as a mechanism to pull the maximum number of people out of poverty and improve quality of life in an inclusive manner.

He highlighted that India has retained its position as the world’s fastest growing major economy. Indian economy has been growing over 7 per cent for several years and the forecast for the future is equally robust. He noted that India improved its ranking on the World Bank’s ‘ease of doing business’ report for the second straight year, jumping 23 places to the 77th position on the back of reforms related to insolvency, taxation and other areas.

Besides, he mentioned that the current global economic outlook also reiterates the need for the promotion of policies for enhancing economic growth and growth inducing investments. Earlier this month, the World Bank said India’s GDP growth was expected to accelerate moderately to 7.5 per cent in fiscal year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption.

Moreover, Sinha added ‘the objective is to bank the unbanked, secure the unsecured, fund the unfunded and service the un-serviced areas’. Noting that India has taken strong initiatives for financial inclusion in the past three years, the government has opened over 320 million bank accounts for those who never had an account.

The CNX Nifty is currently trading at 11664.00, down by 88.80 points or 0.76% after trading in a range of 11646.00 and 11727.05. There were 9 stocks advancing against 40 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Wipro up by 0.98%, TCS up by 0.90%, HCL Tech up by 0.73%, Power Grid up by 0.51% and Infosys was up by 0.41%. On the flip side, BPCL down by 4.99%, Yes Bank down by 3.62%, Indiabulls Housing Finance down by 3.44%, Indian Oil Corporation down by 3.40% and Bharti Airtel was down by 1.93% were the top losers.

Asian markets were trading mixed; Jakarta Composite dropped 89.82 points or 1.38% to 6,417.40, Shanghai Composite declined 45.40 points or 1.39% to 3,225.40 and KOSPI was up by 3.74 points or 0.17% to 2,212.41.

On the other hand, Straits Times advanced 4.39 points or 0.13% to 3,351.97, Nikkei 225 surged 11.75 points or 0.05% to 22,212.31 and Taiwan Weighted was up by 21.87 points or 0.2% to 10,990.37.