Indian equity benchmarks continue their weak trade

Indian equity benchmarks continued their lackluster trade in early noon session amid negative signals from other Asian markets. Traders were seen in selling position for Tata Motors - DVR, Vedanta and ONGC stocks, while buying was witnessed in TCS, HCL Technologies and Yes Bank stocks. Traders remained concerned with the Department for Promotion of Industry and Internal Trade (DPIIT) latest data showing that the foreign direct investment (FDI) in India declined for the first time in the last six years in 2018-19, falling by 1% to $44.37 billion as compared to $44.85 billion recorded in 2017-18. However, losses remain limited as the Reserve Bank of India is expected to cut key policy rates by 25 bps in the upcoming monetary policy meeting amid subdued domestic industrial activity and slowdown in trade on the global front. Meanwhile, The Goods and Service Tax (GST) Council has constituted two sub-groups to look into the policy and technical aspects like turnover threshold and mode of generation, for e-invoice generation by businesses.

On the global front, Asian markets were trading mostly in red, as investors fretted over the outlook for world growth with trade tensions between Washington and Beijing showing no signs of abating. Back on street, steel stocks were trading lower amid concerns about sluggish steel demand and dumping threat from China, domestic steel may register a growth of 6-8 per cent in the current financial year. In scrip specific development, shares of Lakshmi Vilas Bank declined on reporting a net loss of Rs 264.43 crore for the quarter ended March 31, 2019, as compared to net loss of Rs 622.25 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 39724.25, down by 25.48 points or 0.06% after trading in a range of 39625.33 and 39767.93. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.39%, while Small cap index was down by 0.11%.

The few gaining sectoral indices on the BSE were IT up by 1.16%, TECK up by 0.88%, FMCG was up by 0.24%, while Metal down by 1.20%, PSU down by 1.09%, Auto down by 1.07%, Basic Materials down by 0.84% and Oil & Gas was down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.93%, HCL Technologies up by 1.66%, Yes Bank up by 1.02%, Infosys up by 0.74% and Sun Pharma was up by 0.68%. On the flip side, Tata Motors - DVR down by 2.46%, Vedanta down by 2.42%, ONGC down by 2.28%, SBI down by 2.16% and Tata Motors was down by 2.02% were the top losers.

Meanwhile, the commerce and industry ministry has proposed creation of a separate department for trade facilitation and logistics for better coordination among different government agencies. At the moment, there is no single department to look at all the aspects related to logistics covering various modes of shipment such as sea, roads and railways.

The proposal is part of new government's 100-day action plan prepared by the Department for Promotion of Industry and Internal Trade (DPIIT), an arm of the ministry, which will take office on May 30. Creation of a separate department for trade facilitation and logistics will result in better coordination. At present, a logistics division is functioning under the department of commerce and headed by a special secretary-level officer.

Logistics is a key component for increasing competitiveness of exporters and domestic traders by reducing transport cost and time, and expediting smooth movement of goods. The sector needs lot of coordination among different ministries and departments including railways, road and shipping. In January 2019, Economic Advisory Council to the Prime Minister (EAC-PM) has suggested setting up a separate logistics department and introducing one permit-one tax system for trucks, among other measures, to boost the transport sector and improve ease of doing business.

The CNX Nifty is currently trading at 11917.80, down by 10.95 points or 0.09% after trading in a range of 11890.35 and 11931.90. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.68%, TCS up by 2.06%, GAIL India up by 1.86%, HCL Technologies up by 1.83% and Wipro was up by 1.64%. On the flip side, Vedanta down by 2.65%, ONGC down by 2.42%, Zee Entertainment down by 2.25%, SBI down by 2.06% and UPL was down by 1.99% were the top losers.

Most of the Asian markets are trading in red; Nikkei 225 slipped 262.55 points or 1.23% to 20,997.59, Hang Seng decreased 26.86 points or 0.1% to 27,363.95, KOSPI fell 22.15 points or 1.08% to 2,026.68, Taiwan Weighted dropped 10.53 points or 0.1% to 10,301.78 and Straits Times was down by 4.15 points or 0.13% to 3,161.17.

On the flip side, Shanghai Composite gained 11.89 points or 0.41% to 2,921.80 and Jakarta Composite was up by 61.93 points or 1.03% to 6,095.07.