Indian bourses continue to trade in negative terrain

Indian bourses continued to trade in negative territory in afternoon session, on the back of sustained selling activities by market-participants. The mood on the street remained cautious with Asian Development Bank lowering India's Gross Domestic Product (GDP) growth forecast to 7 percent for the current year on the back of fiscal shortfall concerns. Moreover, disappointing quarterly earnings by some blue- chip companies and weak global cues, weighed on the sentiments. However, losses were limited as some optimism remained among the traders with Commerce and Industry Minister Piyush Goyal’s statement that huge investment opportunities exist in India in sectors like housing, smart cities, railway stations, gas and telecom grids for UK companies. He has expressed confidence that with technological advancements in the UK, newer technology can be made affordable for the people of India, and making them an attractive export proposition to serve the rest of the world.

On the global front, Asian markets were trading mostly in red on signs that the US-China trade war could hurt corporate earnings. Back home, the BSE Sensex is currently trading at 39090.69, down by 124.95 points or 0.32% after trading in a range of 39087.76 and 39204.47. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.80%, while Small cap index was down by 0.74%.

The top losing sectoral indices on the BSE were Metal down by 1.81%, Auto down by 1.67%, Realty down by 1.37%, Consumer Durables down by 1.27% and PSU down by 1.18%, while there were no gainers on sectoral indices.

The top gainers on the Sensex were HDFC up by 1.91%, Bajaj Finance up by 1.08%, HDFC Bank up by 0.98%, ITC up by 0.49% and Hero MotoCorp up by 0.29%. On the flip side, Yes Bank down by 11.22%, Tata Motors - DVR down by 4.49%, Tata Motors down by 3.43%, ONGC down by 2.87% and Vedanta down by 2.49% were the top losers.

Meanwhile, Asian Development Bank (ADB) in its supplement to the Asian Development Outlook 2019 has slashed India's gross domestic product (GDP) growth forecast to 7 percent for the current fiscal (FY20), from 7.2 percent projected earlier, on the back of fiscal shortfall concerns.

ADB has also lowered its GDP growth forecast for FY 2020-21 to 7.2 percent from 7.3 percent projected earlier. For the south Asian region, it said the outlook remains robust, with growth projected at 6.6 percent in 2019 and 6.7 percent in 2020.

Earlier, in April this year too, it had lowered India's growth forecast by 40 basis points to 7.2 percent for FY20 from 7.6 percent estimated previously due to moderation in global demand and likely shortfall in revenue on the domestic front.

The CNX Nifty is currently trading at 11648.20, down by 39.30 points or 0.34% after trading in a range of 11644.85 and 11677.15. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.22%, HDFC up by 1.90%, Britannia Industries up by 1.20%, Zee Entertainment up by 1.06% and HDFC Bank up by 1.04%. On the flip side, Yes Bank down by 11.43%, Tata Motors down by 3.37%, ONGC down by 3.04%, Coal India down by 2.87% and Vedanta down by 2.40% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 422.94 points or 1.97% to 21,046.24, Hang Seng decreased 191.49 points or 0.67% to 28,401.68, Taiwan Weighted dropped 29.20 points or 0.27% to 10,799.28, Shanghai Composite declined 24.41 points or 0.83% to 2,907.28, Straits Times trembled 11.85 points or 0.35% to 3,353.02 and KOSPI fell 6.37 points or 0.31% to 2,066.55.

On the flip side, Jakarta Composite soared 3.33 points or 0.05% to 6,397.94.