Benchmarks continue to trade in negative zone

Indian bourses extended their losses in early noon session with Sensex and Nifty trading down by 281 and 93 points respectively, amid weak global cues.  Stocks from Realty, Energy and Telecom counters were trading lower, while only IT counters were supporting the markets. Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Cautiousness prevailed in the markets as the US Commerce Secretary Wilbur Ross has said the US wants India to eliminate trade barriers for American firms and remove data localisation restrictions. He also expects that the new government will address these issues. Traders failed to draw any sense of relief from a report that in order to facilitate private companies in India and the US, Commerce and Industry Minister Suresh Prabhu has made a case for a government-to-government agreement between both the countries. The commerce minister stated ‘public policies may sometimes create challenges for corporate but if we have a government-to-government agreement, we can clearly spell out the certainty, stability, forward-looking policies and this will facilitate companies to prepare their corporate plans’.

On the global front, Asian markets are trading in red, tracked by Wall Street’s slide, while investors switched to safe-haven government bonds, driven by fears that global growth will suffer as a potential trade deal between the US and China appeared to be unravelling. Back on street, in scrip specific developments, Escorts tumbled despite reporting a rise of 7.83% in its net profit at Rs 121.35 crore for the quarter ended March 31, 2019 as compared to Rs 112.54 crore for the same quarter in the previous year. Meanwhile, Indoco Remedies rose on receiving UK-MHRA’s nod for new solid dosages facility in Baddi.

The BSE Sensex is currently trading at 37995.18, down by 281.45 points or 0.74% after trading in a range of 37981.64 and 38248.57. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.98%, while Small cap index was down by 0.84%.

The only gaining sectoral indices on the BSE were IT up by 0.09% while, Realty down by 2.19%, Energy down by 1.75%, Telecom down by 1.20%, Metal down by 1.12%, Consumer Discretionary stocks was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 0.81%, TCS up by 0.29%, HCL Technologies up by 0.29%, Infosys up by 0.26% and Coal India was up by 0.24%. On the flip side, Vedanta down by 3.24%, Reliance Industries down by 2.46%, Tata Motors - DVR down by 2.25%, Tata Motors down by 1.83% and Yes Bank was down by 1.76% were the top losers.

Meanwhile, in order to increase trade and investment with Africa, the commerce ministry has said Indian businesses in Africa have suggested the government to take steps such as improving line of credit system, setting up of banks and liberalise visa policies. They further said start direct flights between the India and African countries; exploring possibility of rupee trade to address the issue of shortage of dollars; creation of common database of buyer-suppliers; development of a robust trade dispute settlement mechanism; and establishment of country chapters of FICCI or CII in Africa.

Department of Commerce welcomed the suggestions and assured them that these suggestions will be shared with relevant stakeholders /Departments in order to incorporate the suggestions in the India-Africa strategy for trade promotion.

Besides, the ministry stated, as per the latest available estimates,  the current strength of the Indian Diaspora in the African countries is 2.8 million and out of those 2.5 million are PIOs and rest 2,20,967 are NRIs. The India's total trade with the African region during 2017-18 was $62.69 billion.

The CNX Nifty is currently trading at 11404.65, down by 93.25 points or 0.81% after trading in a range of 11401.75 and 11479.10. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 0.81%, UPL up by 0.62%, Indian Oil Corporation up by 0.62%, Bharti Infratel up by 0.50% and Coal India was up by 0.48%. On the flip side, Zee Entertainment down by 10.61%, Vedanta down by 2.97%, Reliance Industries down by 2.45%, Bajaj Finserv down by 2.34% and Yes Bank was down by 2.12% were the top losers.

Asian markets are trading in red; Straits Times declined 33.19 points or 1.00% to 3,279.33, Hang Seng fell 274.52 points or 0.93% to 29,088.50, Taiwan Weighted slipped 49.19 points or 0.45% to 10,937.95, Jakarta Composite fell 46.61 points or 0.74% to 6,250.71, Shanghai Composite decreased 13.81 points or 0.47% to 2,912.58, Nikkei 225 tumbled 347.69 points or 1.59% to 21,516.03 and KOSPI was down by 7.02 points or 0.32% to 2,169.97.