Sensex, Nifty remain in green

Indian equity indices were trading in green terrain in late afternoon session, despite weak opening in European markets. The sentiment were positive, as India’s Wholesale price index (WPI) inflation eased further for the third straight month in the month of June, driven down by decline in prices of fuel. According to the latest data released by the government, WPI slowed down to 2.02% in June from 2.45% in May and 5.68% during the corresponding month of the previous year. Some comfort also came in with credit rating agency, Fitch Ratings’ latest report stating that the Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets.

On the global front, European markets were trading in red, as the Bank of Italy projected that Italy's economic growth is set to slow to 0.1 percent this year from 0.7 percent in 2018. The economy grew 0.1 percent in the first quarter after contracting 0.1 percent in the final three months of 2018. However, Asian markets were trading in green. Back home, aviation stocks were in focus, after Moody's Investors Service said that sustained growth in air passenger traffic across the Asia Pacific will boost revenue for airports but also raise pressure on the infrastructure.

The BSE Sensex is currently trading at 38851.47, up by 115.24 points or 0.30% after trading in a range of 38696.60 and 39023.97. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.64%, while Small cap index was down by 0.60%.

The top gaining sectoral indices on the BSE were IT up by 2.86%, TECK up by 2.36%, Healthcare up by 0.72%, Basic Materials up by 0.32% and Auto up by 0.29%, while Capital Goods down by 1.45%, Consumer Durables down by 1.04%, Telecom down by 0.96%, Industrials down by 0.95% and FMCG down by 0.80% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 6.55%, Sun Pharma up by 4.00%, Bajaj Finance up by 1.47%, Maruti Suzuki up by 1.47% and Kotak Mahindra Bank up by 1.28%. On the flip side, Indusind Bank down by 2.12%, Larsen & Toubro down by 1.86%, Bharti Airtel down by 1.60%, ITC down by 1.36% and Yes Bank down by 1.22% were the top losers.

Meanwhile, the Department of Investment and Public Asset Management (DIPAM) Secretary Atanu Chakraborty has said that the government is planning to list 10 other Central Public Sector Enterprises (CPSEs) and go ahead with strategic sale to meet the ambitious Rs 1.05 lakh crore disinvestment target for 2019-20. He noted said that although in the last five years, the government has not been able to privatise any public sector undertaking under strategic disinvestment, the DIPAM is hopeful of pushing forward some proposals in the current fiscal.

Talking on whether the target would be achieved in FY20, DIPAM Secretary said there is a ‘cynicism’ about disinvestment. He also said “in last three years, it has steadily moved. Over last 2 years, the trajectory that one has seen should be adequate to convince people that perhaps the target will come through, though they are strongly affected by the way market moves.” As regard to the criticism that government sells family silver, he said in 2014 the value of government holding in listed entities was Rs 8.01 lakh crore.

On the Budget proposal of increasing minimum public shareholding (MPS) in listed companies from 25 percent to 35 percent, Chakraborty said promoter holding in most of the CPSES are in the range of 65 percent or below. However, he said “for private sector, I have seen some reticence, but if a company is public limited why the reticence for giving a wider ownership which is the basic principle? Perhaps time, the manner of doing and the regulation, which is the domain of Sebi.”

The CNX Nifty is currently trading at 11580.65, up by 28.15 points or 0.24% after trading in a range of 11532.30 and 11618.40. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Infosys up by 6.75%, Sun Pharma up by 3.96%, UPL up by 2.04%, Bajaj Finance up by 1.60% and Maruti Suzuki up by 1.49%. On the flip side, Indiabulls Housing Finance down by 3.94%, Indusind Bank down by 2.15%, Zee Entertainment down by 2.11%, Larsen & Toubro down by 1.84% and Bharti Airtel down by 1.53% were the top losers.

Asian markets are trading mostly in green; Jakarta Composite soared 60.38 points or 0.95% to 6,433.73, Taiwan Weighted strengthened 52.08 points or 0.48% to 10,876.43, Hang Seng increased 41.80 points or 0.15% to 28,513.42 and Shanghai Composite was up by 4.08 points or 0.14% to 2,934.63. On the flip side, Straits Times trembled 3.72 points or 0.11% to 3,353.62 and KOSPI was down by 4.18 points or 0.2% to 2,082.48.

European markets were trading mostly in red; FTSE lost 3.86 points or 0.05% to 7,502.11, CAC fell 7.54 points or 0.14% to 5,565.32, while DAX was up by 21.54 points or 0.17% to 12,344.86.