Sensex, Nifty remain in green terrain

Key Indian equity benchmarks remained in green terrain in late afternoon session, despite weak opening of European markets. Market participants were positive, as the Trump administration said that there is an enormous potential for growth in the India-US relationship, exuding confidence that the ongoing trade negotiations could be worked through because of the friendship between the two nations. Besides, Indian Ambassador to the US, Harsh Vardhan Shringla said that it is in the mutual interest of India and the US to have a smooth trading relationship and they can find ways to deal with some of the minor speed bumps.

On the global front, European markets were trading in red, as Germany's economic confidence weakened to a nine-month low in July. The survey data from the ZEW-Leibniz Centre for European Economic Research showed that the economic confidence index declined to -24.5 in July from -21.1 in June. This was the lowest score since October 2018. Asian markets were also trading in red, after Singapore's exports declined sharply at a faster-than-expected pace in June as trade disputes weighed heavily on both electronics and non-electronics shipments.

Back home, auto industry stocks were trading lower, as the data report from the Ministry of Heavy Industries & Public Enterprises showed that auto industry witnessed sluggish rate of sales during January-June 2019. During the period of January-June 2019, 12.04 million vehicles were sold. A net decline of 10.08% was registered in the rate of automobile sale in the last two quarters. Further, telecom stocks remained in watch, after the Department of Telecom (DoT) signed a MoU with the Indian Council for Research on International Economic Relations (ICRIER), to develop a Broadband Readiness Index (BRI) for Indian States and Union Territories.

The BSE Sensex is currently trading at 39211.44, up by 80.40 points or 0.21% after trading in a range of 39081.14 and 39284.73. 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 0.18%, while Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were IT up by 0.83%, TECK up by 0.70%, FMCG up by 0.50%, Bankex up by 0.50% and Basic Materials was up by 0.33%, while Utilities down by 0.90%, Telecom down by 0.84%, Oil & Gas down by 0.84%, Auto down by 0.84% and Energy was down by 0.73% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.54%, Kotak Mahindra Bank up by 2.43%, HCL Tech up by 1.86%, Asian Paints up by 1.47% and SBI was up by 1.06%. On the flip side, Yes Bank down by 3.71%, ONGC down by 1.94%, Bharti Airtel down by 1.67%, Tata Motors down by 1.44% and NTPC was down by 1.18% were the top losers.

Meanwhile, indicating poor performance, the Minister of Heavy Industries & Public Enterprises, Arvind Ganpat Sawant has said that the government is aware that the auto sector, which has been growing at approximately 7-8% per annum, has witnessed a sluggish rate of sales in the last two quarters.

Sawant further highlighted efforts being taken to revive the sector, noting that the government, as a policymaker, always attempts to kick start the sluggish economy through a package of measures for comprehensive and continued development of the auto sector as and when required.

As per Ministry of Heavy Industries & Public Enterprises, during the period of January-June 2018, 13.39 million vehicles (all categories) were sold and during the period of January-June 2019, 12.04 million vehicles were sold. A net decline of 10.08% was registered in the rate of automobile sale in the last two quarters.

The CNX Nifty is currently trading at 11689.30, up by 26.70 points or 0.23% after trading in a range of 11651.15 and 11706.65. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.81%, Kotak Mahindra Bank up by 2.53%, Tech Mahindra up by 2.52%, HCL Tech up by 2.06% and Indiabulls Housing Finance was up by 1.99%. On the flip side, Yes Bank down by 3.61%, Eicher Motors down by 2.88%, GAIL India down by 2.61%, ONGC down by 1.77% and Bharti Airtel was down by 1.60% were the top losers.

Asian markets were trading in red; Hang Seng decreased 90.27 points or 0.32% to 28,529.35, Taiwan Weighted dropped 57.57 points or 0.53% to 10,828.48, KOSPI fell 18.95 points or 0.91% to 2,072.92, Straits Times trembled 0.57 points or 0.02% to 3,359.46, Shanghai Composite declined 7.72 points or 0.26% to 2,929.90, Jakarta Composite lost 13.62 points or 0.21% to 6,388.26 and Nikkei 225 was down by 66.07 points or 0.31% to 21,469.18.

All European markets were trading in red; FTSE lost 6.69 points or 0.09% to 7,570.51, CAC fell 4.71 points or 0.08% to 5,609.67 and DAX was down by 7.19 points or 0.06% to 12,423.78.