Bourses turn negative

Indian equity benchmarks turned negative in late afternoon session, tracking European markets. In line with the larger peers, the broader indices were too lingering under pressure. Heavy losses led by Telecom, Healthcare and Auto stocks, weighed on the sentiments. Traders overlooked the Reserve Bank of India’s (RBI) statement that it will infuse Rs 12,500 crore of liquidity into the system through purchase of government bonds (G-sec). The Central bank would purchase five government bonds under open market operations (OMOs) on June 20, 2019.

On the global front, European markets were trading in red after Australia's leading index dropped further in May and remained consistently negative for the past six months. The data from Westpac showed that the Westpac- Melbourne Institute Leading Index that indicates likely pace of economic activity over the next nine months, declined to -0.45 percent in May from -0.49 percent in April. In December 2018, the score was -0.37 percent. However, Asian markets were trading in green.

Back home, auto stocks were in focus as automobile industry body SIAM proposed making petrol-powered two-wheelers and passenger vehicles material compatible with 10 per cent ethanol (E10) and 3 per cent methanol (M3) blends by 2025.

The BSE Sensex is currently trading at 38898.70, down by 147.64 points or 0.38% after trading in a range of 38897.97 and 39435.80. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.05%, while Small cap index was down by 1.62%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.37% and Realty up by 0.06%, while Telecom down by 1.87%, Healthcare down by 1.62%, Auto down by 1.53%, Oil & Gas down by 1.52% and Energy down by 1.50% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.38%, Kotak Mahindra Bank up by 2.10%, Power Grid up by 1.64%, NTPC up by 1.09% and ITC up by 0.34%. On the flip side, Yes Bank down by 6.72%, Tata Motors down by 3.51%, Tata Motors - DVR down by 3.45%, Hero MotoCorp down by 3.23% and Mahindra & Mahindra down by 2.74% were the top losers.

Meanwhile, in a view of the rapid growth of electronic commerce (e-commerce) and the rising importance of online trade in a large number of goods and services in India, the Competition Commission of India (CCI) is conducting a Market Study on E-commerce in the country.

In this initiative, the CCI to study market trends with a particular focus on emerging distribution methods and strategies in response to ecommerce. The study will also allow the CCI to develop a better understanding of the functioning of e-commerce in the country and its implications for markets and competition.

The preliminary findings of the study will be presented at a Workshop to be held in the end of August 2019. The study is a combination of desk research, market survey and stakeholder consultation. Qualitative and quantitative information is being collected from secondary and primary sources.

The CNX Nifty is currently trading at 11625.75, down by 65.75 points or 0.56% after trading in a range of 11625.75 and 11802.50. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.52%, Zee Entertainment up by 2.28%, Kotak Mahindra Bank up by 2.16%, Power Grid up by 1.62% and NTPC up by 1.13%. On the flip side, Indiabulls Housing Finance down by 13.23%, Yes Bank down by 6.77%, UPL down by 5.45%, Adani Ports & SEZ down by 4.35% and Tata Motors down by 3.44% were the top losers.

All Asian markets were trading in green; Hang Seng increased 626.41 points or 2.28% to 28,125.18, Nikkei 225 surged 361.16 points or 1.72% to 21,333.87, Taiwan Weighted strengthened 208.60 points or 1.97% to 10,775.34, Shanghai Composite gained 28.98 points or 1% to 2,919.14, KOSPI rose 26.07 points or 1.24% to 2,124.78, Straits Times advanced 45.62 points or 1.41% to 3,284.35 and Jakarta Composite was up by 57.25 points or 0.91% to 6,314.58.

All European markets were trading in red; FTSE lost 24.73 points or 0.33% to 7,418.31, CAC fell 6.78 points or 0.12% to 5,502.95 and DAX was down by 9.47 points or 0.08% to 12,322.28.