Benchmarks make pessimistic start

Indian equity benchmarks made a pessimistic start and are trading with a cut of around half a percent in early deals. Sentiments remain dampened with the India Meteorological Department’s (IMD) statement that pre-monsoon rainfall from March to April, a phenomenon critical to agriculture in some parts of the country, has recorded 27 per cent deficiency. The IMD recorded 43.3 millimetres of rainfall across the country from March 1 to April 24 as against the normal precipitation of 59.6 millimetres. This was 27 per cent less of the Long Period Average (LPA). Traders also remained cautious with private report stating that the decline in economic growth momentum in October-December quarter of FY19 is likely to continue. As per the report, subdued consumption demand and election related uncertainty is expected to weigh on India's industrial production.

On the global front, Asian markets are trading mixed at this point of time, as investors await a US Federal Reserve policy decision for clues of whether it will continue to take a patient approach to interest rate policy. The US markets ended marginally higher on Monday buoyed by upbeat consumer spending data and a largely positive earnings.

Back home, the Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23. On scrip specific developments, Yes Bank tanked after Rs 1,507-crore March quarter loss. However, Glenmark edged higher on launching novel, globally-researched anti-diabetes drug Remogliflozin in India.

The BSE Sensex is currently trading at 38,915.63, down by 151.70 points or 0.39% after trading in a range of 38,905.19 and 39,068.67. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 1.02%, while Small cap index was down by 0.99%.

The few gaining sectoral indices on the BSE were IT up by 0.74%, TECK up by 0.52% and Consumer Durables was up by 0.28%, while Realty down by 2.23%, Bankex down by 1.37%, Telecom down by 1.32%, Auto down by 1.16% and Healthcare was down by 0.93% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.67%, HDFC Bank up by 1.53%, Asian Paints up by 1.41%, Infosys up by 1.00% and Axis Bank was up by 0.86%. On the flip side, Yes Bank down by 24.75%, Indusind Bank down by 5.13%, Sun Pharma Industries down by 2.68%, Maruti Suzuki down by 2.02% and Hero MotoCorp was down by 2.01% were the top losers.

Meanwhile, raising concerns over rainfall in India, the India Meteorological Department (IMD) stated that pre-monsoon rainfall from March to April has recorded 27% deficiency. IMD said it is a phenomenon critical to agriculture in some parts of the country. The IMD recorded 43.3 millimetres of rainfall across the country from March 1 to April 24 as against the normal precipitation of 59.6 millimetres. This was 27% less of the Long Period Average (LPA). The highest deficiency of 38% was recorded in the northwest India division of the IMD, which comprises states of Uttar Pradesh, Delhi, Punjab, Haryana, Jammu and Kashmir, Uttarakhand and Himachal Pradesh.

IMD said this was followed by the Southern peninsula division comprising all five states of the South India and the Union Territory of Puducherry, Goa and coastal Maharashtra, where the deficiency recorded was 31%. East and northeast India division recorded 23% deficiency. The Central India division is the only one to have recorded more 5% rainfall than the normal. Pre-monsoon showers, thunderstorms and lightening have killed more than 50 people in Madhya Pradesh, Maharashtra, Gujarat and Rajasthan this month.

Several parts of India receive pre-monsoon rainfall which is critical for those regions. The phenomenon, which is usually from March to May end, is vital as it helps in bringing the temperatures down. One of the reasons for a pre-monsoon rainfall is excessive heating from March to June which several parts of the country witness. Additional Director General of the IMD said the moisture from the Arabian Sea and the Bay of Bengal aids in creation of thunderstorms.

The CNX Nifty is currently trading at 11700.60, down by 54.05 points or 0.46% after trading in a range of 11696.90 and 11748.75. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Indian Oil Corp. up by 1.34%, Asian Paints up by 1.29%, Dr. Reddys Lab up by 1.26%, HCL Technologies up by 1.17% and HDFC Bank was up by 1.05%. On the flip side, Yes Bank down by 25.11%, Indiabulls Housing down by 5.66%, Indusind Bank down by 5.04%, Bharti Infratel down by 3.63% and Sun Pharma Industries was down by 2.91% were the top losers.

Asian Market were trading mix; Jakarta Composite soared 27.58 points or 0.43% to 6,453.48, Shanghai Composite gained 13.24 points or 0.43% to 3,075.74 and Taiwan Weighted was up by 1.52 points or 0.01% to 10,940.58. On the other side, Straits Times fell 13.25 points or 0.39% to 3,393.77, KOSPI declined 14.18 points or 0.64% to 2,202.25 and Hang Seng was down by 144.05 points or 0.48% to 29,748.76.