Sensex, Nifty back in green terrain

Indian equity bourses erased losses to come back in green terrain in late afternoon session, on account of firm opening of European markets. The street got comfort, amid private report stating that recruiters are bullish about adding staff to their payrolls in the next six months of this year, and the maximum hiring is expected to be in the experience band of three-five years. Adding some relief, the Government introduced the Insolvency and Bankruptcy Code (Amendment) Bill 2019, that seeks to ensure timely completion of debt resolution process and provide more clarity on rights of stakeholders.

On the global front, European markets were trading in green, after Spain's producer prices declined for the first time since late 2016 in June. The data from the statistical office INE showed that producer prices dropped 0.6 percent year-on-year in June, following a 1.2 percent rise in May. Asian markets were also trading in green.

Back home, auto component industry stocks remained in focus, after Auto Component Manufacturers Association of India (ACMA) sought reduction in GST rate to a uniform level of 18 per cent for the entire automobile industry to stimulate demand and help save around 10 lakh jobs, which are at risk due to prolonged slowdown in vehicle sales.

The BSE Sensex is currently trading at 37935.67, up by 88.02 points or 0.23% after trading in a range of 37775.51 and 38169.87. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.47%, while Small cap index was down by 0.10%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.49%, Telecom up by 0.93%, TECK up by 0.88%, IT up by 0.75% and Realty up by 0.58%, while Energy down by 1.06%, Oil & Gas down by 0.76%, Metal down by 0.58%, PSU down by 0.45% and Industrials down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.54%, Vedanta up by 2.42%, Sun Pharma up by 2.18%, TCS up by 1.37% and Power Grid up by 1.29%. On the flip side, Tata Motors down by 4.43%, Tata Motors - DVR down by 3.46%, Bajaj Finance down by 3.27%, Yes Bank down by 1.85% and HCL Tech. down by 1.09% were the top losers.

Meanwhile, in order to stimulate demand and help save around 10 lakh jobs, Auto Component Manufacturers Association of India (ACMA) has sought reduction in the Goods and Services Tax (GST) rate to a uniform level of 18% for the entire automobile industry. The industry body also sought clarity on policy for electrification of vehicles.

ACMA President Ram Venkataramani underlined that the automotive industry is facing an unprecedented slowdown. Vehicle sales in all segments have continued to plummet for the last several months. He also said that considering the auto component industry grows on the back of the vehicle industry, a current 15-20% cut in vehicle production has led to a crisis-like situation and if the trend continues, an estimated 10 lakh people could be laid off.

Venkataramani expressed need for urgent government intervention. Besides, he said that any further changes in targets for rollout of EVs would increase the country's import bill and damage the current components manufacturing ecosystem.

The CNX Nifty is currently trading at 11295.40, up by 24.10 points or 0.21% after trading in a range of 11247.10 and 11361.40. There were 26 stocks advancing against 23 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Cipla up by 3.60%, Zee Entertainment up by 2.82%, Indusind Bank up by 2.53%, Vedanta up by 2.48% and Dr. Reddy’s Lab up by 2.42%. On the flip side, Tata Motors down by 4.36%, Bajaj Finance down by 3.06%, Bajaj Finserv down by 2.97%, Coal India down by 2.01% and Yes Bank down by 1.96% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 85.03 points or 0.3% to 28,609.07, Nikkei 225 surged 46.98 points or 0.22% to 21,756.55, Jakarta Composite soared 14.25 points or 0.22% to 6,399.24, Straits Times advanced 11.15 points or 0.33% to 3,379.59, Taiwan Weighted strengthened 5.65 points or 0.05% to 10,941.41 and Shanghai Composite was up by 5.50 points or 0.19% to 2,928.78. On the flip side, KOSPI was down by 7.82 points or 0.38% to 2,074.48.

European markets were trading mostly in green; FTSE gained 17.16 points or 0.23% to 7,518.62 and CAC rose 28.26 points or 0.50% to 5,634.13, while DAX was down by 6.73 points or 0.05% to 12,516.16.