Markets trade flat with negative bias

Indian equity benchmarks were trading slightly in red in mid-morning trade as traders remain concerned about report that monsoon rains are expected to hit Kerala on June 6, five days after its normal onset date. The India Meteorological Department (IMD) also said the southwest monsoon arrival over the State is likely to be slightly delayed. The agriculture in India is heavily dependent on the monsoon rains due to lackluster irrigation facilities. Selling in software and power counters too dampened sentiments, while buying was witnessed in healthcare and telecom sector. Weakness in Asian counterparts too weighed down sentiments with most of the regional counters are trading in red at this point of time on reports that US President Donald Trump is planning to delay tariffs on auto imports. Back home, power sector stocks edged lower despite the Central Electricity Authority estimation that power generation from thermal, hydel and nuclear plants is expected to grow 6.5% this fiscal, nearly double of last year’s rise of 3.5%. In scrip specific developments, NTPC surged on winning 100 MW solar capacities in SECI’s 250 MW tender for Dondaicha Solar Park, however Manappuram Finance slipped despite reporting 43% rise in Q4 consolidated net profit.

The BSE Sensex is currently trading at 37110.92, down by 3.96 points or 0.01% after trading in a range of 37087.58 and 37204.77. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index gained 0.46%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were IT up by 0.89%, Power up by 0.77%, TECK up by 0.71%, Realty up by 0.69% and Utilities was up by 0.60%, while Healthcare down by 1.42%, Telecom down by 0.99%, Capital Goods down by 0.72%, Industrials down by 0.41% and FMCG down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.95%, Power Grid Corporation up by 1.90%, Tata Motors - DVR up by 1.79%, Infosys up by 1.58% and Bajaj Finance up by 1.17%. On the flip side, Sun Pharma down by 3.67%, Yes Bank down by 1.84%, Mahindra & Mahindra down by 1.72%, Bharti Airtel down by 1.57% and Coal India down by 1.55% were the top losers.

Meanwhile, in order to provide more clarity and uniformity in choosing names for the companies, the corporate affairs ministry has amended the rules pertaining to incorporation of companies. The ministry has brought in amendments to the Companies (incorporation) Rules, 2014.

The move also comes against the backdrop of instances where applications by companies for registering their names have been rejected on account of various reasons, including trademark issues and proposed names being too general.

The rules have been updated so that there is clarity for people to apply as well as for officers to process the requests properly. Among others, the ministry has now provided illustrations regarding applicability of various names.

The CNX Nifty is currently trading at 11152.75, down by 4.25 points or 0.04% after trading in a range of 11147.00 and 11185.20. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.45%, Zee Entertainment up by 2.16%, Power Grid Corporation up by 2.13%, Infosys up by 1.61% and Adani Ports up by 1.42%. On the flip side, Sun Pharma down by 4.62%, Indiabulls Housing down by 1.76%, Bharti Airtel down by 1.69%, Mahindra & Mahindra down by 1.66% and Yes Bank down by 1.57% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 declined 161.87 points or 0.76% to 21,026.69, Taiwan Weighted shed 36.44 points or 0.35% to 10,524.27, KOSPI dropped 23.36 points or 1.12% to 2,069.42, Straits Times slipped 1.14 points or 0.04% to 3,217.63 and Jakarta Composite was down by 63.10 points or 1.06% to 5,917.79. On the flip side, Hang Seng was up by 17.49 points or 0.06% to 28,286.20.