Benchmarks trade marginally lower in afternoon deals

Indian benchmark indices were trading marginally in red in the afternoon session, on account of sustained selling by fund and retail investors in the blue chip counters. The sentiments remained down-beat with data showing that India’s industrial output declined by 0.1% in March, hitting a 21-month low, due to contraction in manufacturing, capital goods and consumer durables. Some caution also prevailed in the markets ahead of Consumer Price Index (CPI) data for April scheduled to be released today. However, losses were limited as some optimism remained among the traders with the FICCI’s survey stating that the overall sentiment in the manufacturing sector remains positive as the proportion of respondents reporting higher output growth (around 54 percent) during the January-March 2018-19 (Q4FY19) remained the same as compared to Q3 (October-December) of 2018-19. On the sectoral front, auto stocks were trading lower, impacted with data released by the Society of Indian Automobile Manufacturers (SIAM) that domestic passenger vehicle (PV) sales declined 17.07 percent to 2,47,541 units in April from 2,98,504 units in the year-ago month.

On the global front, Asian markets were trading in red, after trade talks between the U.S. and China wrapped up Friday without an agreement. Back home, the BSE Sensex is currently trading at 37433.68, down by 29.31 points or 0.08% after trading in a range of 37319.00 and 37583.57. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.97%, while Small cap index was down by 1.14%.

The gaining sectoral indices on the BSE were Telecom up by 0.76%, FMCG up by 0.50%, TECK up by 0.37%, IT up by 0.35% and Consumer Durables was up by 0.12%, while Capital Goods down by 1.77%, Healthcare down by 1.53%, Industrials down by 1.49%, Utilities down by 1.44% and Power was down by 1.44% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 0.82%, ITC up by 0.76%, Hero MotoCorp up by 0.71%, Axis Bank up by 0.62% and HDFC was up by 0.51%. On the flip side, Yes Bank down by 3.57%, Tata Motors - DVR down by 2.97%, Sun Pharma down by 2.17%, Larsen & Toubro down by 2.16% and NTPC was down by 1.65% were the top losers.

Meanwhile, the Federation of Indian Chamber of Commerce and Industry (FICCI) in its ‘Quarterly Survey on Manufacturing' has stated that the overall sentiment in the manufacturing sector remains optimistic as the proportion of respondents reporting higher output growth (around 54 percent) during the January-March 2018-19 (Q4FY19) remained the same as compared to Q3 (October-December) of 2018-19. It also noted that first time in previous many quarters, the overall capacity utilisation in manufacturing has saw a surge to 80 percent in Q4FY19. It was hovering at 75 percent for last many quarters.

On hiring front, the survey stated that the outlook for the sector seems to have slightly improved for near future. It also pointed out that while in Q4 of 2017-18, 70 percent respondents mentioned that they were not likely to hire additional workforce, this percentage has come down to 62.5 percent for Q4 of 2018-19. In terms of order books, 44 percent respondents in March 2019 quarter are expecting higher number of orders as against 43 percent in Q3 2017-18 which again is a sign of revival.

Going forward, FICCI is expecting that hiring scenario will improve further as 37.5 percent respondents in Q4 2018-19 are looking at hiring more people now as compared to 30 percent in the year-ago period. FICCI's survey assessed manufacturers in 12 major sectors namely automotive, capital goods, cement and ceramics, chemicals, textiles, leather and footwear, metal and metal products, fertilisers and pharmaceuticals, and others.

The CNX Nifty is currently trading at 11256.30, down by 22.60 points or 0.20% after trading in a range of 11230.70 and 11300.20. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 1.21%, Tech Mahindra up by 1.21%, Bharti Infratel up by 1.20%, Hindustan Unilever up by 0.95% and ITC was up by 0.74%. On the flip side, Eicher Motors down by 6.56%, Yes Bank down by 3.42%, Indiabulls Housing Finance down by 3.02%, Larsen & Toubro down by 2.10% and Sun Pharma was down by 1.96% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 153.64 points or 0.72% to 21,191.28, Taiwan Weighted dropped 154.70 points or 1.44% to 10,558.29, Jakarta Composite lost 22.93 points or 0.37% to 6,186.19, KOSPI fell 29.03 points or 1.38% to 2,079.01, Straits Times trembled 31.14 points or 0.95% to 3,242.36 and Shanghai Composite declined 39.84 points or 136% to 2,899.37.