Markets trade near day’s low points in late afternoon deals

Key equity benchmarks extended their losses in late afternoon deals to trade near their intraday low points, on account of weak opening in European markets. In line with the larger peers, the broader markets were too lingering under pressure, while SBI performed worst among all major industry leaders on the BSE. Sentiments on the street remained dampened with the Department for Promotion of Industry and Internal Trade’s (DPIIT) latest data report showing that 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. Traders were seen taking a note of a private report that 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.

On the global front, European markets were trading in red, as France's economic growth eased slightly in the first quarter after revision. The detailed results from the statistical office Insee showed that gross domestic product grew 0.3 percent sequentially, in line with the estimate released on April 30, but slightly slower than the revised 0.4 percent expansion seen in the fourth quarter of 2018. Asian markets were also trading in red.

The BSE Sensex is currently trading at 39553.67, down by 196.06 points or 0.49% after trading in a range of 39529.78 and 39767.93. There were 10 stocks advancing against 20 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.66%, while Small cap index was down by 0.44%.

The few gaining sectoral indices on the BSE were IT up by 0.74%, TECK up by 0.43% and Healthcare up by 0.02%, while Metal down by 2.05%, PSU down by 1.48%, Auto down by 1.32%, Basic Materials down by 1.30% and Industrials down by 1.15% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.93%, TCS up by 1.71%, HCL Tech. up by 1.34%, Mahindra & Mahindra up by 0.54% and Kotak Mahindra Bank up by 0.49%. On the flip side, SBI down by 3.27%, Tata Motors - DVR down by 2.68%, ICICI Bank down by 2.59%, Tata Steel down by 2.54% and Tata Motors down by 2.41% were the top losers.

Meanwhile, aided by robust economic growth, a large labour force and its huge market size, India has moved up one place to rank as the world's 43rd most competitive economy in the 2019 edition of IMD World Competitiveness Rankings. India was ranked 45th in 2017, but higher at 41st in 2016.

As per the report, the country’s score was well on several economic parameters and tax policies but has lagged in terms of public finance, societal framework, education infrastructure, health and environment. The IMD World Competitiveness Rankings incorporate 235 indicators from each of the 63 ranked economies to evaluate their ability to foster an environment where enterprises can achieve sustainable growth, generate jobs and increase welfare for its citizens.

Globally, Singapore leapfrogged the US to grab the top position, while the US has slipped to the third place in the 2019 edition of the IMD World Competitiveness Rankings. Hong Kong SAR has held onto its second place.

The CNX Nifty is currently trading at 11866.80, down by 61.95 points or 0.52% after trading in a range of 11865.30 and 11931.90. There were 12 stocks advancing against 37 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Sun Pharma up by 3.34%, GAIL India up by 2.68%, Bharti Infratel up by 2.10%, TCS up by 1.76% and Wipro up by 1.54%. On the flip side, JSW Steel down by 3.64%, SBI down by 3.29%, Zee Entertainment down by 2.66%, Tata Steel down by 2.65% and ICICI Bank down by 2.58% were the top losers.

Asian markets were mostly trading in red; Nikkei 225 slipped 256.77 points or 1.21% to 21,003.37, Hang Seng decreased 121.78 points or 0.44% to 27,269.03, KOSPI fell 25.51 points or 1.25% to 2,023.32, Taiwan Weighted dropped 10.53 points or 0.1% to 10,301.78 and Straits Times was down by 9.25 points or 0.29% to 3,156.07. On the flip side, Shanghai Composite gained 8.57 points or 0.29% to 2,918.48 and Jakarta Composite was up by 73.12 points or 1.21% to 6,106.26.

All European markets were trading in red; UK’s FTSE 100 lost 100.76 points or 1.39% to 7,168.19, France’s CAC fell 88.16 points or 1.66% to 5,224.53 and Germany’s DAX was down by 155.53 points or 1.29% to 11,871.52.