Local equities continue to trade flat on positive bias

After opening on a positive note, local equities trimmed some of its gain and continued to trade flat in the morning session. Traders were seen piling positions in Realty, Energy and BANKEX sector while selling was witnessed in IT, Capital Goods and Oil & Gas sector stocks. Investors got some support came with a private report that even as employment scenario remains weak, India may see the addition of 11.5 lakh jobs in the formal sector during the first half of FY20, adding travel, hospitality and BPO/ITeS are likely to be the top contributors. Traders took note of a report that India has sought greater access for agricultural and animal husbandry products in Chinese market to boost exports and bridge trade deficit with the neighbouring country. Besides, India is expected to export 10-11 million tonnes of iron ore pallets to China this year against 9.5 million mt last year on good demand notwithstanding trade tensions with the key export market of the US. However, gains remained capped, as traders remain concerned as International Monetary Fund has warned that trade tensions and the exchange of tariffs between the United States and China pose a ‘threat to the global economy’.

On the global front, Asian markets are trading mixed; as traders remained caution with a private report that US President Donald Trump’s tariff increase to 25 percent on $200 billion worth of Chinese goods took effect on May 10, 2019, ratcheting up tensions between the United States and China as they pursue last-ditch talks to try to salvage a trade deal. Back home, Niti Aayog CEO Amitabh Kant stated that the food services and restaurant industry will play a critical role in pushing India's Gross Domestic Product (GDP) growth. He also pointed out that the restaurant sector is third largest industry among India's service sectors.

The BSE Sensex is currently trading at 37596.09, up by 37.18 points or 0.10% after trading in a range of 37479.62 and 37721.98. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.17%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Realty up by 0.88%, Energy up by 0.52%, BANKEX up by 0.42%, Metal up by 0.11% and Industrials was up by 0.08%, while Capital Goods down by 0.44%, IT down by 0.43%, TECK down by 0.36%, Telecom down by 0.36% and Oil & Gas was down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.83%, Tata Motors - DVR up by 1.24%, ICICI Bank up by 1.10%, Reliance Industries up by 1.06% and Axis Bank was up by 0.68%. On the flip side, HCL Tech. down by 4.47%, Asian Paints down by 1.95%, Bajaj Finance down by 1.71%, IndusInd Bank down by 1.01% and Mahindra & Mahindra was down by 0.74% were the top losers.

Meanwhile, the government has prohibited imports of second-hand or refurbished electronics and IT goods without registration with the Bureau of Indian Standards (BIS). Under the Electronics and IT Goods (Requirement of Compulsory Registration) order 2012, imports of these goods are allowed through the registration with the BIS or on specific exemption letter from the ministry of IT and electronics (MeitY).

The govt further said  without the registration and compliance with BIS labelling requirements, the imported goods will be re-exported by the importer, otherwise the customs authorities will deform those products and dispose of them as scrap. In last financial year (FY19) the India’s electronics imports has increased to $55.6 billion from $51.5 billion in FY18.

The directorate general of foreign trade (DGFT) has said the imports of goods (new as well as second hand, whether or not refurbished, repaired or re-conditioned) is prohibited unless they are registered with BIS and comply to the labelling requirements published by BIS, as amended from time to time, or on specific exemption letter from MeitY for a particular consignment.

The CNX Nifty is currently trading at 11312.40, up by 10.60 points or 0.09% after trading in a range of 11272.25 and 11342.75. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.63%, Indiabulls Housing up by 2.44%, Tata Motors up by 1.58%, ICICI Bank up by 1.25% and Bharti Airtel was up by 1.14%. On the flip side, HCL Tech. down by 4.93%, BPCL down by 1.83%, Bharti Infratel down by 1.82%, Bajaj Finance down by 1.73% and Asian Paints was down by 1.61% were the top losers.

Asian markets are trading mixed; Straits Times increased 4.15 points or 0.13% to 3,273.85, Hang Seng gained 185.80 points or 0.66% to 28,496.87, KOSPI surged 1.75 points or 0.08% to 2,103.76 and Shanghai Composite was up by 9.71 points or 0.34% to 2,860.66.

On the flip side, Jakarta Composite fell 20.67 points or 0.33% to 6,178.13, Taiwan Weighted slipped by 31.15 points or 0.29% to 10,702.52, Nikkei 225 tumbled 71.44 points or 0.33% to 21,330.69.