Indian equities add losses in afternoon deals

Benchmark indices extended their losses and were trading near day's low in afternoon session, as selling momentum in the equities persisted. Traders remain worried with India Meteorological Department stating that the overall monsoon deficiency in the country has reached 43 per cent due to its sluggish pace. Traders overlooked the Commerce Ministry in its latest study stating that the ongoing tariff or customs duties war between the US and China proves a big window of opportunity to India for enhancing exports of as many 350 products such as chemicals and granite to these countries. Meanwhile, the GST Council is likely to extend till November 30, 2020 the tenure of the National Anti-profiteering Authority (NAA), which deals with customer complaints regarding not receiving tax cut benefits, at its next meeting on June 21. On the sectoral front, tea sector remained in focus with the commerce ministry's Tea Board is considering an industry demand for setting up minimum benchmark prices for different grades of tea leaves.

On the global front, Asian markets were trading mixed, amid a wait-and-see attitude about the direction of interest rates and the trade dispute between the U.S. and China. Back home, the BSE Sensex is currently trading at 39166.93, down by 285.14 points or 0.72% after trading in a range of 39126.34 and 39540.42. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.80%, while Small cap index was down by 0.97%.

The only gaining sectoral index on the BSE was IT up by 0.06%, while Metal down by 2.40%, Energy down by 1.62%, Oil & Gas down by 1.61%, Basic Materials down by 1.54% and Realty was down by 1.48% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 0.52%, Infosys up by 0.35%, Mahindra & Mahindra up by 0.17%, NTPC up by 0.11% and Power Grid was up by 0.10%. On the flip side, Tata Steel down by 4.00%, Vedanta down by 3.30%, Tata Motors - DVR down by 3.11%, Tata Motors down by 2.38% and Axis Bank was down by 2.26% were the top losers.

Meanwhile, the Commerce Ministry in its latest study has stated that the ongoing tariff or customs duties war between the US and China proves a big window of opportunity to India for enhancing exports of as many 350 products such as chemicals and granite to these countries. It noted that both the US and China are imposing heavy import duties on each other’s products, which has caused a trade war kind of situation.

According to the study, as much 151 domestic products including diesel, X-ray tubes and certain chemicals have an outright advantage to displace the US exports to China. Similarly, 203 Indian goods like rubber and graphite electrodes have the advantage to displace Chinese exports to the US. It said that the specific products in which India can potentially expand exports to China immediately based on its strengths and available market access in the neighbouring country and also those in which concerted efforts need to be made to acquire market access are being shared with the line ministries.

The ministry further stated that the ongoing trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries. It pointed out that the Indian products which can tap the Chinese market include copper ores, rubber, paper/paperboard, equipment for transmission voice/data in a wired network, tunes and pipes. Similarly, domestic goods which can grab exports opportunities in the US market include industrial valves, vulcanised rubber, carbon or graphite electrodes and natural honey. It added that increasing exports would help India narrow the widening trade deficit with China, which stood at $50.12 billion during April-February 2018-19.

The CNX Nifty is currently trading at 11728.60, down by 94.70 points or 0.80% after trading in a range of 11719.15 and 11844.05. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 0.83%, UPL up by 0.39%, Infosys up by 0.38%, Wipro up by 0.32% and NTPC was up by 0.30%. On the flip side, Tata Steel down by 4.38%, JSW Steel down by 3.50%, Vedanta down by 3.21%, Tata Motors down by 2.47% and Titan company was down by 2.41% were the top losers.

Asian markets were trading mixed; Hang Seng increased 149.23 points or 0.55% to 27,267.58, Nikkei 225 surged 7.11 points or 0.03% to 21,124.00, Taiwan Weighted strengthened 5.87 points or 0.06% to 10,530.54 and Shanghai Composite was up by 1.22 points or 0.04% to 2,883.19.

On the flip side, KOSPI fell 4.68 points or 0.22% to 2,090.73, Straits Times trembled 8.40 points or 0.26% to 3,214.23 and Jakarta Composite was down by 17.12 points or 0.27% to 6,233.15.