Weak trade persists; Metals lose shine

Weak trade persisted on Dalal Street in late afternoon deals, despite firm opening in European markets. Domestic sentiments remained dampened with India Meteorological Department (IMD) stating that the overall monsoon deficiency in the country has reached 43 per cent due to its sluggish pace. Traders paid no heed towards credit rating agency ICRA’s report that though macro fundamentals of the Indian economy have taken an unfavourable turn in the past few quarters, the continuity of National Democratic Alliance (NDA) led by Prime Minister Narendra Modi after the general elections augers well for key sectors of the economy.

On the global front, European markets were trading in green, as Italy's consumer price inflation slowed more than initially estimated to a 13-month low in May. The final data from the statistical office Istat showed that consumer prices advanced 0.8 percent year-on-year in May, slower than the 1.1 percent increase in April. The annual rate was revised down from 0.9 percent estimated on May 31. However, Asian markets were trading mixed.

Back home, stocks related to tea industry were in focus, as the commerce ministry's Tea Board is considering an industry demand for setting up minimum benchmark prices for different grades of tea leaves. Indian Tea Association (ITA) has demanded that the government should set up minimum benchmark prices for different grades of tea leaves to promote the growth of the sector and push exports.

The BSE Sensex is currently trading at 39049.38, down by 402.69 points or 1.02% after trading in a range of 39029.84 and 39540.42. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.00%, while Small cap index was down by 1.02%.

The lone gaining sectoral index on the BSE was IT up by 0.04%, while, Metal down by 2.98%, Basic Materials down by 2.05%, Energy down by 1.90%, Telecom down by 1.65%, Oil & Gas down by 1.65% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 0.61%, Infosys up by 0.33%, Coal India up by 0.08% and Hindustan Unilever up by 0.01%. On the flip side, Tata Steel down by 5.34%, Vedanta down by 3.51%, Axis Bank down by 2.94%, Tata Motors - DVR down by 2.73% and Tata Motors down by 2.50% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that the continuity of National Democratic Alliance (NDA) led by Prime Minister Narendra Modi augers well for key sectors of the economy and further expressed need to boost infrastructure investment and private consumption while maintaining fiscal discipline.

As per the rating agency, the total budgetary allocation is estimated to grow, with the continuity in government. ICRA forecasted that the government is expected to continue policy focus on augmentation of renewable energy based capacities, mainly wind and solar. However, improvement in the transmission infrastructure will remain critical.

Besides, ICRA noted that serious efforts are required by the utilities towards improving the operating efficiencies. This coupled with timely subsidy support, tariff revisions remain extremely critical going forward.

The CNX Nifty is currently trading at 11696.60, down by 126.70 points or 1.07% after trading in a range of 11691.95 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 1.00%, Zee Entertainment up by 0.34%, Infosys up by 0.28%, Wipro up by 0.18% and Hindustan Unilever up by 0.15%. On the flip side, Tata Steel down by 5.44%, JSW Steel down by 3.96%, Vedanta down by 3.39%, Axis Bank down by 3.18% and Tata Motors down by 2.59% 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.

All European markets were trading in green; FTSE gained 10.81 points or 0.15% to 7,356.59, CAC rose 9.26 points or 0.17% to 5,376.88 and DAX was up by 17.13 points or 0.14% to 12,113.53.