Benchmarks trade flat with positive bias; Sensex holds 38,800 mark

Indian equity benchmarks continued to trade in a tight range near neutral line with positive bias in early noon session. Metal, Realty and Basic Materials stocks were amongst the top gainers on the BSE sectoral space. Selling in frontline blue chip stocks such as Bharti Airtel, Larsen & Toubro, Axis Bank and Bajaj Finance restricted the markets to go up. Besides, Market participants will closely watch the developments related to Infosys and IndusInd Bank ahead of their first quarter results. Markets took some comfort as rainfall in the first 11 days of this month was 24% more than ‘normal’, the overall season’s rain deficit came down to 12%, from 33% witnessed in June. The report said continuance of the current spell of showers for another week may help the farmers to complete the kharif sowing operations which were down by 27% until last week from the year-ago level. However, anxiety remained on the street as President Donald Trump and US Trade Representative Robert Lighthizer are frustrated with the lack of balance and reciprocity from India when it comes to trade and tariff. Top US Administration official said that the new round of discussion between the two countries is not open-ended and the US wants things to move quickly. Meanwhile, a private report stated that the Brazilian government had asked the World Trade Organization (WTO) to establish a panel aimed at resolving its dispute over Indian sugar subsidies. Brazil alleges that the Indian government has taken actions that distort global sugar markets.

On the global front, Asian market were trading mostly in green, as investors awaited key China trade and lending data, and as worries over Sino-US trade tensions countered optimism rooted in expectations of a Federal Reserve rate cut in July. Back on street, in scrip specific developments, shares of NTPC gained on installing FGD technology across all plants. Quess Corp edged up on getting nod to raise around Rs 51 crore via preferential allotment.

The BSE Sensex is currently trading at 38832.62, up by 9.51 points or 0.02% after trading in a range of 38747.80 and 38941.10. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were Metal up by 1.14%, Realty up by 0.81%, Basic Materials up by 0.78%, Utilities up by 0.60% and Energy was up by 0.60%, while Capital Goods down by 0.91%, Telecom down by 0.88%, Industrials down by 0.33% and Bankex was down by 0.26% were few the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.56%, NTPC up by 1.71%, Vedanta up by 1.65%, Sun Pharma up by 1.13% and Reliance Industries was up by 0.99%. On the flip side, Bharti Airtel down by 1.47%, Larsen & Toubro down by 1.43%, Axis Bank down by 1.30%, Bajaj Finance down by 1.30% and HDFC Bank was down by 0.53% were the top losers.

Meanwhile, US Commerce Secretary Wilbur Ross has said India must recognise that its protectionist policies and tariff rules are hurting its companies and are a big impediment to attracting foreign direct investment. However, he exuded confidence that Prime Minister Narendra Modi would take necessary steps to remove obstacles that constrain businesses and the manufacturing sector.

Ross has pointed out that the recent decisions that have impacted American firms such as Amazon and Walmart have created an atmosphere of unpredictability and has hit the confidence of other companies to invest in India. He said “The Walmart is going to continue to invest in India. I don’t mean to suggest that they’re not. That’s not what they told me. That caused concern on the part of other companies because of this one thing that they really needs to know if they are going into a country that they will be stability of regulation, that there will be transparency and an opportunity to comment on new pending regulations.”

US Commerce Secretary stated that uncertainties like that make it very difficult for businesses to make their major and long-term capital decisions. So, he suggested that India needs to start to reconvince the outside world that there will be stability, there will be transparency and provide a level playing field to companies. He felt that such a move would bring in huge FDI in India and this will help boost the country in development and economy.

The CNX Nifty is currently trading at 11585.40, up by 2.50 points or 0.02% after trading in a range of 11553.30 and 11608.90. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.46%, UPL up by 2.00%, Vedanta up by 1.77%, NTPC up by 1.71% and Sun Pharma up by 1.44%. On the flip side, Wipro down by 2.54%, Bharti Airtel down by 1.50%, Larsen & Toubro down by 1.48%, Bajaj Finance down by 1.41% and Axis Bank was down by 1.14% were the top losers.

Asian market were trading mostly in green, KOSPI rose 5.08 points or 0.24% to 2,085.66, Hang Seng increased 110.63 points or 0.39% to 28,542.43, Straits Times advanced 11.51 points or 0.34% to 3,361.96, Nikkei 225 surged 34.99 points or 0.16% to 21,678.52 and Shanghai Composite was up by 16.30 points or 0.56% to 2,934.06. On the other hand, Taiwan Weighted dropped 3.81 points or 0.04% to 10,839.61 and Jakarta Composite was down by 21.86 points or 0.34% to 6,395.21.