Sensex, Nifty turn red in early noon deals

Indian bourses turned negative in early noon session as selling appeared in Energy, Utilities and Healthcare stocks with Sensex and Nifty tumbling by 84.33 and 23.75 points respectively. Broader indices were trading mixed with the BSE Mid cap index lost 0.17%, while Small cap index was up by 0.06%. The moods on the street turned cautious with India Meteorological Department’s (IMD) statement that the arrival of the monsoon in the national capital is likely to be delayed by two-three days, though the city is expected to receive normal rainfall. It said normally, the monsoon reaches Delhi by June 29. Since there is a delay in its onset in the southern peninsula, the wind system is likely to take two-three days longer to reach northwest India. However, losses remain limited on report that in order to improve transparency and safety of money markets, the Reserve Bank of India (RBI) will rationalize existing regulations covering different money market products. It has issued regulations over time covering different money market products - call money, repo, commercial paper, certificates of deposit and other debt instruments with original maturity of less than one year. Meanwhile, Finance Minister Nirmala Sitharaman will appreciate the suggestions given by various stakeholders for the forthcoming budget and said that ministry will take note of them. Sitharaman, who is the first full-time woman finance minister, will be presenting the budget for 2019-20 on July 5.

On the global front, Asian markets are trading in green, on expectations that global central banks will soon embark on an easing cycle in the face of international trade frictions and fears of a world recession. Back on street, in scrip specific developments, shares of Manappuram Finance (MFL) declined as the Securities and Exchange Board of India (Sebi) has issued showcause notices to five asset management companies (AMCs) for using price-sensitive information to trade in MFL stock in March 2013. However, shares of Indiabulls Real Estate (IBREL) rallied after the promoters sold 14 per cent of their holding in the company through open market.

The BSE Sensex is currently trading at 39445.39, down by 84.33 points or 0.21% after trading in a range of 39279.47 and 39666.63. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.17%, while Small cap index was up by 0.06%.

The top gaining sectoral indices on the BSE were Telecom up by 1.53%, Capital Goods up by 0.35%, Consumer Durables up by 0.19%, Realty up by 0.18% and Industrials was up by 0.15%, while Energy down by 0.94%, Utilities down by 0.58%, Healthcare down by 0.58%, FMCG down by 0.33% and Oil & Gas was down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.67%, Vedanta up by 1.50%, Indusind Bank up by 0.98%, Bajaj Finance up by 0.64% and Tata Motors - DVR was up by 0.49%. On the flip side, Reliance Industries down by 1.42%, Coal India down by 1.30%, Sun Pharma down by 0.92%, Yes Bank down by 0.91% and Kotak Mahindra Bank was down by 0.82% were the top losers.

Meanwhile, the textile industry is expecting to become a $350 billion industry by 2025 from the current $137 billion. For India, there is a need to develop man-made fibre to remain competitive in the global market. Textiles Secretary Ajit B Chavan said it is high time that the industry changes its approach to move into the second growth phase and aim for exports of around $100 billion from the current $40 billion.

Chavan further added ‘we need to come up with detailed plans that can take the industry to its next level. All these years we have focused on more production scale, but now the focus has to be on quality and other aspects to improve our competitiveness’.

Besides, in view of the US China trade war, India needs to create a level playing field for local players and protect the domestic industry. The US China trade war holds a lot of opportunities for India, but India need to be competitive.

The CNX Nifty is currently trading at 11820.00, down by 23.75 points or 0.20% after trading in a range of 11769.50 and 11887.35. There were 19 stocks advancing against 30 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Bharti Infratel up by 2.67%, Indiabulls Housing up by 2.20%, Bharti Airtel up by 1.61%, Vedanta up by 1.29% and BPCL was up by 0.82%. On the flip side, Dr. Reddys Lab down by 2.52%, Cipla down by 1.83%, Reliance Industries down by 1.53%, Coal India down by 1.47% and Adani Ports &Special was down by 1.27% were the top losers.

Asian markets are trading in green; Straits Times advanced 7.45 points or 0.24% to 3,153.63 and Nikkei 225 was up by 121.08 points or 0.58% to 20,895.12. On the other hand, KOSPI was down by 2.51 points or 0.12% to 2,066.60.