Weak trade persists; Sensex down by around 150 points

Weak trade continued on Dalal Street in late afternoon session, on the back of negative cues from European markets. Heavy losses led by Realty, Telecom and Banking stocks also weighed on the domestic sentiments. Traders remained pessimistic with ICRA’s research report stating that the earnings released by 642 companies in the Indian corporate sector revealed that the revenue growth in the fourth quarter (January-March) of FY18-19 hit a six-quarter low at 10 percent. It added that weak consumer sentiments and softening of commodity prices led to a fall in the revenue growth in the last quarter of FY19. The street overlooked India Ratings and Research’s (Ind-Ra) statement that the Reserve Bank of India (RBI) has scope for another interest rate cut due to lower WPI inflation.

On the global front, European markets were trading in red, as Hungary's industrial production grew at the slowest rate in three months in April. The data from the Hungarian Central Statistical Office showed that industrial production climbed 6.0 percent year-on-year in April, after a 7.8 percent increase in March. The latest growth in production was the lowest since January, when it was 3.6 percent.  Asian markets were also trading in red.

The BSE Sensex is currently trading at 39598.51, down by 142.85 points or 0.36% after trading in a range of 39514.72 and 39799.90. 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 0.58%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were Metal up by 0.32%, Capital Goods up by 0.23%, IT up by 0.05% and PSU up by 0.01% while, Realty down by 1.21%, Telecom down by 1.10%, Bankex down by 0.87%, FMCG down by 0.72% and Auto down by 0.60% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 1.19%, Tata Steel up by 0.69%, Sun Pharma up by 0.67%, ONGC up by 0.62% and Larsen & Toubro up by 0.56%. On the flip side, Indusind Bank down by 4.42%, Axis Bank down by 2.04%, Bharti Airtel down by 2.00%, Tata Motors - DVR down by 1.87% and Yes Bank down by 1.66% were the top losers.

Meanwhile, in order to meet the durable liquidity needs of the system going forward, the Reserve Bank of India (RBI) has said that it will infuse Rs 12,500 crore into the financial system through purchase of government securities (G-sec) under the Open Market Operation (OMO) on June 20, 2019.

It added that the decision has been taken based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward. The government securities to be purchased in the auction.

Recently, the RBI had injected Rs 15,000 crore into the system through bond purchases. The RBI uses OMO for injecting liquidity into the system through the purchase of government bonds (G-sec) to regulate money supply in the market. The sale or buying of g-secs infuses or reduces liquidity.

The CNX Nifty is currently trading at 11855.70, down by 58.35 points or 0.49% after trading in a range of 11839.35 and 11911.85. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 1.29%, Vedanta up by 1.22%, Sun Pharma up by 1.18%, ONGC up by 0.56% and Tata Steel up by 0.55%. On the flip side, Zee Entertainment down by 4.57%, Indusind Bank down by 4.40%, Bharti Airtel down by 2.47%, Axis Bank down by 2.09% and Yes Bank down by 1.84% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 215.01 points or 0.79% to 27,079.70, Taiwan Weighted dropped 36.34 points or 0.34% to 10,524.67, Jakarta Composite lost 22.30 points or 0.36% to 6,250.78, Shanghai Composite declined 30.26 points or 1.04% to 2,880.48, KOSPI fell 7.74 points or 0.37% to 2,095.41 and Straits Times was down by 5.95 points or 0.18% to 3,214.71. On the flip side, Nikkei 225 was up by 84.89 points or 0.4% to 21,116.89.

All European markets were trading in red; FTSE lost 11.32 points or 0.15% to 7,357.25, CAC fell 10.36 points or 0.19% to 5,365.27 and DAX was down by 69.66 points or 0.57% to 12,099.39.