Lackluster trade persists on Dalal Street

Lackluster trade persisted on Dalal Street in late afternoon session, despite firm opening in European markets. The street were concerned as the government admitted that doubling of farm income by 2022 was not possible with the current rate of growth in the agriculture sector and said it was trying to promote allied sectors to achieve the target. Domestic sentiments remained dampened, amid reports that overseas investors have pressed the exit button in July and pulled out a net Rs 3,758 crore from the Indian capital markets on account of multiple headwinds, including the super-rich tax announced in Budget 2019-20.

On the global front, European markets were trading mostly in green after Finland's manufacturing sentiment remained stable in July. The data from the Confederation of Finnish Industries showed that the manufacturing sentiment index held steady at -4 in July. However, Asian markets were trading in red, as the value of retail sales in Japan was roughly unchanged in June on a seasonally adjusted basis. As per the Ministry of Economy, Trade and Industry, that exceeded expectations for a decline of 0.3 percent following the upwardly revised 0.4 percent gain in May (originally 0.3 percent).

Back home, airlines stocks remained in watch, as Airports Authority of India Chairman Guruprasad Mohapatra said that the government is set to privatize 20-25 more airports in the next phase.

The BSE Sensex is currently trading at 37619.20, down by 263.59 points or 0.70% after trading in a range of 37519.16 and 38043.22. There were 7 stocks advancing against 23 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.60%, while Small cap index was down by 0.86%.

The only gaining sectoral indices on the BSE were IT up by 0.16% and Bankex up by 0.11%, while Auto down by 3.25%, Basic Materials down by 2.52%, Telecom down by 2.51%, Metal down by 2.50% and Consumer Disc down by 1.72% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 3.48%, HCL Tech up by 0.82%, Indusind Bank up by 0.70%, TCS up by 0.42% and Tech Mahindra up by 0.26%. On the flip side, Bajaj Auto down by 5.28%, Tata Motors down by 5.26%, Tata Motors - DVR down by 5.01%, Vedanta down by 4.51% and Maruti Suzuki down by 3.83% were the top losers.

Meanwhile, admitting that doubling of farm income by 2022 is not possible with the current rate of growth in the agriculture sector, the government has said that it is trying to promote allied sectors to achieve doubling farm income.

Minister of State for Agriculture Purshottam Rupala said the raising of farm income is not possible with growth in only one sector, but the government is making efforts to promote allied sectors of agriculture and that will aid in helping double the farm income.

Rupala further underlined the efforts being taken to increase the clusters under organic farming and giving them various incentives. The minister also said the government had so far spent Rs 720 crore through 61 projects for promoting organic farming in the country.

The CNX Nifty is currently trading at 11173.20, down by 111.10 points or 0.98% after trading in a range of 11152.40 and 11310.95. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 3.43%, Indusind Bank up by 0.90%, HCL Tech. up by 0.75%, TCS up by 0.43% and Tech Mahindra up by 0.33%. On the flip side, Indiabulls Housing Finance down by 9.51%, Grasim Industries down by 8.69%, Tata Motors down by 5.54%, Bajaj Auto down by 5.15% and Vedanta down by 4.66% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 421.86 points or 1.49% to 27,975.88, Nikkei 225 slipped 41.35 points or 0.19% to 21,616.80, Straits Times trembled 27.21 points or 0.81% to 3,336.55, Jakarta Composite lost 25.00 points or 0.4% to 6,300.24, Taiwan Weighted dropped 6.25 points or 0.06% to 10,885.73, KOSPI fell 36.78 points or 1.78% to 2,029.48 and Shanghai Composite was down by 5.36 points or 0.18% to 2,939.18.

European markets were trading mostly in green; FTSE gained 89.75 points or 1.19% to 7,638.81 and DAX was up by 0.11 points to 12,420.01, while CAC was down by 4.98 points or 0.09% to 5,605.07.