Lackluster trade continues on Dalal Street

Indian equity benchmarks continued their lackluster trade in afternoon session, as caution set in ahead of key macro data - index of industrial production (IIP) for May and consumer price index-based inflation for June scheduled to be released later today. Investors’ sentiment remain dented with former finance minister P Chidambaram’s statement that the Union Budget 2019-20 does not chalk out a clear roadmap to take India on the path of high economic growth and lacks bold steps and structural reforms. Some concern also came with US Commerce Secretary Wilbur Ross’ statement that 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, traders took some support with CFA Institute in its latest report titled ‘Investment Professional of the Future’ stating that India has the potential to become the world’s future investment hub and is expected to be the fastest-growing market for investment professionals over the next decade.

On the global front, Asian market were trading mostly in green, but gains were slight as investors applied the brakes after recent advances, with debate now focusing on the depth of an expected US interest rate cut. Back home, the BSE Sensex is currently trading at 38812.47, down by 10.64 points or 0.03% after trading in a range of 38747.80 and 38941.10. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.49%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Metal up by 1.02%, Realty up by 1.00%, Basic Materials up by 0.82%, Utilities up by 0.70% and Healthcare was up by 0.68%, while Capital Goods down by 1.09%, Telecom down by 0.98%, Industrials down by 0.38%, Bankex down by 0.29% and Oil & Gas was down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.76%, Tata Steel up by 2.20%, NTPC up by 2.09%, Vedanta up by 1.83% and Hero MotoCorp was up by 1.74%. On the flip side, Axis Bank down by 1.69%, Larsen & Toubro down by 1.69%, Bharti Airtel down by 1.54%, Bajaj Finance down by 1.46% and ONGC was down by 0.88% were the top losers.

Meanwhile, the US India Strategic and Partnership Forum (USISPF) in its ‘US India Bilateral Trade Report’ has stated that the bilateral trade between India and the US is likely to grow from $143 billion to $238 billion by 2025, in line with the current trends and huge impending deals in aerospace and petroleum & gas sectors between the two economies. It noted that this growth will happen if trade grows by 7.5 percent every year, as has been the trend for the last seven years. 

According to the report, sectors like defence trade, commercial aircrafts, oil and LNG, coal, machinery and electronics are areas of potential growth in US investments and commerce into India. Similarly, Indian industry has an opportunity to promote the automotive, pharmaceuticals, seafood, IT and travel services to the US market. Observing that the US-India trade relationship stands solid today with a promising future, it concluded that the latest trends in increasing volumes of bilateral trade between the two economies point to complementarity of commercial interests.

The report further said that the policy gaps in the trade dynamics of the two countries have led to several contentious issues albeit trade volumes have been steadily expanding, and suggested that there is tremendous interest among the businesses from both sides and immense potential remains untapped. It also said that this potential may be unlocked with appropriate policy measures from both sides. It noted that presently, the US-India trade relationship is at its highest point with both economies witnessing positive growths in their bilateral trade volumes.

The CNX Nifty is currently trading at 11582.10, down by 0.80 points or 0.01% after trading in a range of 11553.30 and 11608.90. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.62%, Tata Steel up by 2.21%, NTPC up by 2.21%, Vedanta up by 1.86% and UPL was up by 1.81%. On the flip side, Wipro down by 2.22%, Larsen & Toubro down by 1.71%, Axis Bank down by 1.65%, Bharti Airtel down by 1.54% and Bajaj Finance was  down by 1.48% were the top losers.

Asian market were trading mostly in green; Hang Seng increased 76.46 points or 0.27% to 28,508.26, Nikkei 225 surged 42.37 points or 0.2% to 21,685.90, Shanghai Composite gained 17.73 points or 0.61% to 2,935.49, Straits Times advanced 6.75 points or 0.2% to 3,357.20 and KOSPI was up by 6.08 points or 0.29% to 2,086.66.

On the flip side, Taiwan Weighted dropped 19.07 points or 0.18% to 10,824.35 and Jakarta Composite was down by 21.86 points or 0.34% to 6,395.21.