Markets trade slightly higher in early deals; Nifty above 11,600 mark

Indian equity benchmarks made a cautious start and are trading slightly higher in early deals on Tuesday, with gains of around quarter a percent each. Besides, broader indices - BSE Mid cap and Small cap - are also following main indices with marginal gains. Some support came with Finance Minister Nirmala Sitharaman’s statement that GST collection of states and union territories (UTs) increased to Rs 5.18 lakh crore in the full financial year 2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18. Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that India is open to ideas from all sides to strengthen investors' confidence so that they can invest and participate in the country's development. Though, upside remained limited as traders were concerned about the IHS Markit India Business Outlook indicating that business sentiment in India fell to its lowest level since June 2016, as companies were worried over a slowing economy, government policies and water shortage. Adding more pessimism among market participants a report stated that India’s exports declined by 9.71 per cent to $25.01 billion in June 2019 compared to $27.7 billion in the same month last year due to a fall in shipments of gems and jewellery, engineering goods and petroleum products. Imports too declined by 9 per cent to $40.29 billion in June 2019 against $44.3 billion in June 2018 mainly and the trade deficit lowered to $15.28 billion in June from $16.6 billion in June 2018.

On the global front, Asian markets were trading mostly higher as traders awaited US retail sales data and more corporate earnings to gauge the health of the world’s biggest economy, with markets remaining focused on a likely US rate cut by the end of the month. Investors got some comfort with encouraging Chinese economic data on the previous day, though broad pressure across global business and investment from Sino-US trade frictions and slowing world growth reinforced expectations of policy easing by major central banks. The US markets had closed slightly higher on Monday.

Back home, on the sectoral front, power stocks were in focus with Fitch Ratings’ statement that a reduction of direct controlling stakes by the government of India in large state-owned energy companies is unlikely to negatively impact the ratings on these entities, as long as the government maintains majority effective ownership and broad control of their activities. In the scrip specific development, Jubilant Life Sciences surged on increasing price of Vitamin B3 (Niacin & Niacinamide) with immediate effect, for non-contract customers and wherever existing contracts permit. Cipla gained with its arm entering into joint venture (JV) agreement with Jiangsu Acebright for incorporation of a JV company in China.

The BSE Sensex is currently trading at 38985.36, up by 88.65 points or 0.23% after trading in a range of 38845.27 and 38986.56. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained by 0.07%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Metal up by 0.92%, Oil & Gas up by 0.81%, PSU up by 0.80%, Power up by 0.77% and Utilities was up by 0.70%, while IT down by 0.53%, TECK down by 0.41%, Auto down by 0.27% and Consumer Discretionary Goods & Services was down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 1.93%, Tata Motors up by 1.86%, Vedanta up by 1.74%, Tata Steel up by 1.44% and ONGC up by 1.39%. On the flip side, TCS down by 1.71%, Hero MotoCorp down by 1.10%, Mahindra & Mahindra down by 1.05%, HCL Technologies down by 0.72% and Yes Bank down by 0.64% were the top losers.

Meanwhile, with a view to strengthen international investors' confidence so that they can invest and participate in the country's development, Commerce and Industry Minister Piyush Goyal has said that Indian government is looking for ideas from all sides. He added that the government aims to give confidence to international investors, with the best of technologies, to come to India and invest.

The Minister said ‘There are obviously some red lines, which each side may find difficult to compromise, but as long as we can respect that, as one would do in a business transaction or while negotiating a good deal, it will not be impossible to resolve it’. He also said that every country has to protect its national interest, legal sovereignty and the interests of its citizens.

Regarding free-trade agreements, Goyal said such pacts implemented by India in 2009-10 had not been good deals and some of them are causing agony which is why India is looking at the US to put that baggage behind and move forward. Talking on the proposed mega free trade pact RCEP, he said that India is working for a fair deal which protects the country's interests and does not allow unfair market access. He highlighted that from now, no agreement or trade pact on commerce will be at the cost of India's interests, the country's sovereign requirements and interests of the citizens.

The CNX Nifty is currently trading at 11611.80, up by 23.45 points or 0.20% after trading in a range of 11573.95 and 11619.65. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 1.46%, Vedanta up by 1.44%, Tata Steel up by 1.32%, ONGC up by 1.23% and ICICI Bank up by 1.23%. On the flip side, TCS down by 1.80%, Hero MotoCorp down by 1.31%, Mahindra & Mahindra down by 1.28%, Indiabulls Housing Finance down by 1.24% and Wipro down by 1.10% were the top losers.

Asian markets were trading mostly in green; Straits Times surged 9.01 points or 0.27% to 3,356.96, Hang Seng advanced 37.56 points or 0.13% to 28,592.44, Taiwan Weighted strengthened15.61 points or 0.14% to 10,892.04 and KOSPI gained 6.99 points or 0.34% to 2,089.47, On the flip side, Nikkei 225 decreased 154.48 points or 0.71% to 21,531.42, Jakarta Composite declined by 11.61 points or 0.18% to 6,406.62 and Shanghai Composite was down by 3.11 points or 0.11% to 2,939.08.