Bourses trim further losses to come off day’s low

Key Indian benchmarks trimmed most of their losses in afternoon session to come off their intraday low points, as Healthcare, Capital Goods, Realty and Energy shares witnessed buying despite persistent weakness in global equities. Traders found some support with Union minister Nitin Gadkari stating that innovative funding modules are on the anvil for the ambitious Rs 7.5-lakh-crore highway building programme as the sector can help achieve government’s dream of making India a $5 trillion economy. However, the trade remained in negative terrain, as anxiety remained among the local traders with CARE Ratings’ report that economic slowdown has begun to dent the credit profile of India Inc. There has been a deterioration in the credit quality of entities rated in the first quarter of the current financial year, showing effect of the prevailing slowdown in the Indian economy. On the sectoral front, sugar stocks were in focus with private report stating that India’s sugar production could fall by 18% in 2019/20 as last year’s drought forced farmers to curtail their sugar cane plantings while lower monsoon rains this year are limiting the crop’s growth. The lower production could help India to reduced stockpiles that have risen because of two years of record production and lower-than-expected exports.

On the global front, Asian markets were trading mostly in red, amid dampened expectations on the Fed cutting rates this month. Back home, the BSE Sensex is currently trading at 38655.13, down by 65.44 points or 0.17% after trading in a range of 38435.87 and 38814.23. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.14%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.83%, Capital Goods up by 1.54%, Realty up by 1.50%, Energy up by 1.43% and Oil & Gas was up by 0.89%, while Consumer Durables down by 6.76%, IT down by 1.48%, TECK down by 1.38%, Consumer Discretionary Goods & Services down by 1.21%, FMCG was down by 0.98% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 5.73%, Bajaj Finance up by 4.84%, Larsen & Toubro up by 2.31%, Reliance Industries up by 1.53% and Indusind Bank was up by 1.23%. On the flip side, Asian Paints down by 2.81%, TCS down by 2.81%, HCL Technologies down by 2.19%, Hindustan Unilever down by 1.55% and Tech Mahindra was down by 1.52% were the top losers.

Meanwhile, the Telecom Regulatory Authority of India (Trai) has stuck to its earlier recommendation on base price and valuation of spectrum, including for 5G radiowaves. While giving views on prices, it made clear to the telecom department that it has considered all the relevant factors, including the methodology, assumptions, developments between the spectrum auction in 2016 and its suggestions of August 1, 2018, and the rationale for spectrum valuation and reserve price.

Trai said the authority reiterates the spectrum valuation and reserves prices as contained in its recommendations dated August 1, 2018. However, it has yielded ground on the issue of lock-in period it had previously recommended for spectrum in 3300-3600 MHz band (for eligibility on spectrum trading). It has now suggested a lower lock-in period of two years for this band against 5 years prescribed earlier. It also said that authority recommends that no rollout obligations should be mandated for spectrum in 3300-3600 MHz band. Further, lock-in period for spectrum in this band for becoming eligible for spectrum trading should be same as in other bands that is 2 years.

Recently, amid financial stress in the sector, Digital Communications Commission (DCC), the highest decision making body in the telecom department, had decided to ask Trai to reconsider its spectrum recommendations and to ensure competition and greater participation of larger set of players in auctions slated for 2019. DCC felt that Trai should revisit its 2018 suggestions keeping in mind the government's larger objective of digital proliferation, broadband for all and inclusive 5G services.
The CNX Nifty is currently trading at 11532.25, down by 26.35 points or 0.23% after trading in a range of 11461.00 and 11582.55. There were 21 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 5.82%, Bajaj Finance up by 5.08%, Indian Oil Corporation up by 4.62%, Bajaj Finserv up by 3.20% and Larsen & Toubro was up by 2.77%. On the flip side, Titan Company down by 12.53%, UPL down by 3.56%, Asian Paints down by 2.76%, TCS down by 2.75% and HCL Technologies was down by 2.36% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 184.85 points or 0.65% to 28,146.84, Taiwan Weighted dropped 48.44 points or 0.45% to 10,702.78, KOSPI fell 12.14 points or 0.59% to 2,052.03, Shanghai Composite declined 6.43 points or 0.22% to 2,926.93 and Straits Times was down by 0.89 points or 0.03% to 3,333.34.

On the flip side, Jakarta Composite soared 21.69 points or 0.34% to 6,373.52 and Nikkei 225 was up by 30.80 points or 0.14% to 21,565.15.