Key indices keep head above water in early noon deals

Local equity benchmarks managed to keep their head above water in early noon deals. Buying in Metal and Energy segment helped in up-move of the markets, while there were selling in telecom and Capital Goods segment. Sentiments were positive with a report that the commerce and industry ministry has proposed a customised incentive package to attract foreign investments in sectors such as electronics, chemicals and food processing. Some comfort also came with report that the commerce ministry is considering a major export promotion scheme to ensure expeditious refund of central and state taxes and levies to boost shipments in the wake of global challenges at trade front. However, gains remain limited with the Federation of Indian Chambers of Commerce & Industry’s (FICCI) statement that India’s slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy. The economy grew 6.6 per cent in the three months to December - the slowest pace in five quarters. It added that the recent signs of a slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand.

On the global front, Asian markets were trading mixed, amid trade talks between the US and Japan. Back on street, in scrip specific development, shares of Adani Ports and Special Economic Zone gained despite on reporting a fall of 3.73% in its net profit at Rs 674.48 crore for the quarter ended March 31, 2019 as compared to Rs 700.59 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 39702.27, up by 18.98 points or 0.05% after trading in a range of 39584.26 and 39785.02. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Metal up by 1.59%, Energy up by 1.49%, IT up by 1.16%, Oil & Gas up by 0.88% and TECK was up by 0.80%, while Telecom down by 1.64%, Capital Goods down by 1.02%, Bankex down by 0.33% and Industrials was down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.09%, Coal India up by 2.19%, Tata Motors - DVR up by 1.95%, Reliance Industries up by 1.72% and Tata Motors was up by 1.57%. On the flip side, Hero MotoCorp down by 1.98%, HDFC down by 1.88%, Bharti Airtel down by 1.86%, Larsen & Toubro down by 1.53% and Kotak Mahindra Bank was down by 1.46% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that India’s gross domestic product (GDP) is likely to grow at 6.9 percent in the fiscal 2018-19 (FY19), slightly lower than Central Statistics Office’s (CSO) advance estimate of 7 percent. It indicated that Indian economy grew at 7.2 percent in 2017-18.

According to the report, the country's economic growth is expected to decelerate to 6.3 percent in Q4 (January-March) of 2018-19 as compared to 6.6 percent in Q3FY19. It noted that 2018-19 will be the second consecutive year of an economic slowdown in India. It also urged the new government to devise and execute both short-term and medium- to long-term measures to arrest the slowdown in the economy.

The rating agency has stated that while cyclical challenges can be addressed through short-term measures, the need of the hour is to address the structural challenges plaguing the Indian economy. It further said that although little can be done with regard to the global trade environment, certainly a more proactive policy intervention could be pursued to aggressively revive investment.

The CNX Nifty is currently trading at 11929.65, up by 4.90 points or 0.04% after trading in a range of 11891.55 and 11958.55. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.09%, JSW Steel up by 2.81%, Hindalco up by 2.24%, Coal India up by 2.17% and Zee Entertainment was up by 2.09%. On the flip side, Bharti Infratel down by 3.63%, Hero MotoCorp down by 2.03%, HDFC down by 1.90%, Larsen & Toubro down by 1.75% and Bharti Airtel was down by 1.73% were the top losers.

Asian markets were trading mixed; Shanghai Composite gained 25.15 points or 0.87% to 2,917.53, Nikkei 225 surged 91.94 points or 0.43% to 21,274.52, Hang Seng increased 165.97 points or 0.61% to 27,454.06 and KOSPI was up by 10.58 points or 0.52% to 2,054.79.

On the flip side, Taiwan Weighted dropped 21.82 points or 0.21% to 10,312.31, Jakarta Composite lost 21.62 points or 0.35% to 6,077.35 and Straits Times was down by 0.42 points or 0.01% to 3,170.35.