Benchmarks continue to trade slightly in green

Indian equity benchmarks continued to trade slightly in green in afternoon session, on the back of buying by funds and retail investors. Investors took support with a top corporate body from Silicon Valley stating that barriers in trade have fallen and many processes have been simplified as a result of the series of key reforms instituted by the Indian government. Some support also came with the India Meteorological Department’s (IMD) statement that India's annual monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week. However, gains were limited as anxiety remained among the traders with economist Arvind Panagariya’s statement that India's economy needs to grow at 8-10 per cent annually if good jobs have to be provided to those joining the workforce. He also emphasized that an export-led growth is very critical for creation of good jobs in the country.  On the sectoral front, steel sector remained in focus with CLSA Research indicating that Indian domestic steel demand has softened in recent months, led by funding constraints in government-led infrastructure projects around general election. 

On the global front, Asian markets were trading mostly in red, as traders looked ahead to a meeting between the American and Chinese presidents amid hopes for renewed trade talks. Back home, the BSE Sensex is currently trading at 39235.21, up by 112.25 points or 0.29% after trading in a range of 38946.04 and 39239.25. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.09%.

The gaining sectoral indices on the BSE were Utilities up by 1.05%, Energy up by 1.03%, Power up by 1.03%, Oil & Gas up by 0.98% and Metal was up by 0.90%, while Capital Goods down by 0.63%, TECK down by 0.29%, Industrials down by 0.28%, IT down by 0.24% and Healthcare was down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.32%, Mahindra & Mahindra up by 1.16%, Power Grid up by 1.08%, Reliance Industries up by 1.07% and Tata Steel was up by 1.07%. On the flip side, Yes Bank down by 1.65%, Sun Pharma down by 0.89%, Larsen & Toubro down by 0.88%, HCL Technologies down by 0.79% and Indusind Bank was down by 0.75% were the top losers.

Meanwhile, the Union cabinet has given its nod to the Airports Economic Regulatory Authority (AERA) (Amendment) Bill. Under the Act, AERA regulates tariffs and development fee at all major airports. The amendment is expected to allow the AERA to bid out any new airport at a pre-determined tariff structure.

Presently, major airports with an annual capacity to handle one-and-a-half million passengers come under the purview of AERA. If the amendment is passed by the Parliament, the definition of major airports would be changed to any aerodrome which has or is designated to have annual passenger capacity of three-and-a-half million.

The AERA (Amendment) Bill was last cleared by the Cabinet during the Modi government's first tenure in December 2017. However, it could not be passed in last year's monsoon session. As new Lok Sabha has come in place now, the older bill has lapsed. Therefore, the Cabinet approved the bill again so that it can be re-introduced in Parliament for passage.

The CNX Nifty is currently trading at 11709.20, up by 9.55 points or 0.08% after trading in a range of 11651.00 and 11717.15. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.84%, JSW Steel up by 1.67%, BPCL up by 1.51%, Power Grid up by 1.18% and Mahindra & Mahindra was up by 1.08%. On the flip side, Zee Entertainment down by 3.81%, Yes Bank down by 2.14%, Bharti Infratel down by 2.03%, Sun Pharma down by 0.96% and Larsen & Toubro was down by 0.95% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite declined 38.09 points or 1.27% to 2,970.06, KOSPI fell 4.69 points or 0.22% to 2,121.64, Hang Seng decreased 358.71 points or 1.26% to 28,154.29, Nikkei 225 slipped 92.18 points or 0.43% to 21,193.81, Straits Times trembled 6.43 points or 0.19% to 3,305.10 and Taiwan Weighted was down by 72.73 points or 0.67% to 10,706.72.

On the flip side, Jakarta Composite was up by 28.48 points or 0.45% to 6,316.95.