Benchmarks trade with marginal losses

Indian equity benchmarks have made a cautious start and are trading marginally in red in early deals as traders remain worried with a private report that the pre-monsoon rainfall in the country was the second lowest in 65 years. The three-month pre-monsoon season March, April and May ended with a rainfall deficiency of 25%. As per the report, all the four meteorological divisions - Northwest India, Central India, East-Northeast India and South Peninsula - recorded deficit rainfall of 30%, 18%, 14% and 47%, respectively. However, losses remain capped as some solace came with Finance Secretary Subhash Chandra Garg’s statement that declining global oil prices, stable rupee and falling interest rate are sure signs of high growth in coming months. India's growth rate has declined to 5-year low of 5.8% in the fourth quarter of the previous fiscal and 6.8% for the full financial year 2018-19.

On the global front, most of the Asian markets are trading in red at this point of time amid ongoing global trade tensions. The US markets ended mostly lower on Monday amid a drop in big tech stocks and the latest developments in US-China trade tensions.

Back home, with the Modi government beginning its second innings with a greater mandate, the industry has pitched for a series of reforms, including in critical areas of land and labour, to take India's economic growth to double-digits in the next five years. To target GDP growing up to 10% by 2023-24, the total investment requirement is estimated at $5.74 trillion (around Rs 397 lakh crore) for the next five years. In scrip specific developments, Eicher Motors edged higher despite its JV reporting 20% fall in May sales and GE Power gained on securing contract worth Rs 738.3 crore from Aravali Power Company.

The BSE Sensex is currently trading at 40184.13, down by 83.49 points or 0.21% after trading in a range of 40130.00 and 40312.07. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.38%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Realty up by 1.69%, Utilities up by 1.00%, Capital Goods up by 0.91%, Power up by 0.81% and PSU was up by 0.57%, while IT down by 1.16%, TECK down by 1.11%, Healthcare down by 0.36%, Oil & Gas down by 0.15% and Bankex was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.51%, NTPC up by 1.99%, Power Grid Corporation up by 1.43%, Larsen & Toubro up by 1.20% and Vedanta up by 1.16%. On the flip side, TCS down by 1.76%, HCL Tech down by 1.69%, Hero MotoCorp down by 1.61%, Asian Paints down by 1.26% and Bajaj Auto down by 1.19% were the top losers.

Meanwhile, expressing hopes on growth of economy, Finance Secretary Subhash Chandra Garg has said that declining global oil prices, stable rupee and falling interest rate are sure signs of high growth in coming months following the government’s data showed that India’s economy slowed down in the fourth quarter as well as in full fiscal year 2018-19.

Garg said ‘Turn around in demand and financing conditions beginning well. PMI manufacturing is at 52.7. Crude is moving towards 60 dollars. Govt bond yield has gone below 7%. Spread for NBFCs/HFCs over Govt bond is narrowing. Rupee is firmly below 70. Sure signs of coming high growth.’ Earlier, he had said slowdown would continue in the first quarter of this fiscal. However, he had expressed hope that growth will pick up from the second quarter of the current financial year.

Besides, India's growth rate has declined to 5-year low of 5.8% in in Q4FY19 and the country lost the fastest-growing large economy status, trailing China’s growth (6.4%) for the first time in nearly two years. The full-year GDP growth, too, slumped to a five-year low of 6.8% in FY19.

The CNX Nifty is currently trading at 12058.70, down by 29.85 points or 0.25% after trading in a range of 12042.90 and 12095.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.54%, Eicher Motors up by 1.95%, NTPC up by 1.88%, Larsen & Toubro up by 1.22% and ITC up by 1.15%. On the flip side, HCL Tech. down by 2.13%, TCS down by 1.97%, Zee Entertainment down by 1.89%, Hero MotoCorp down by 1.51% and Asian Paints down by 1.38% were the top losers.

Asian markets are trading mostly in red; Shanghai Composite declined 24.41 points or 0.84% to 2,865.67, Nikkei 225 slipped 8.08 points or 0.04% to 20,402.80, Hang Seng decreased 89.05 points or 0.33% to 26,804.81, KOSPI fell 0.17 points or 0.01% to 2,067.68 and Taiwan Weighted was down by 46.13 points or 0.44% to 10,453.94. On the flip side, Straits Times was up 13.16 points or 0.42% to 3,136.62.