Sensex, Nifty trade in red

Indian equities were trading in red terrain in late afternoon session, despite firm opening in European markets. Domestic sentiments got hit, after the Reserve Bank of India (RBI) lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent forecast in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand. Traders also remained pessimistic, as the National Council of Applied Economic Research (NCAER) in its latest report said that India's Gross Domestic Product (GDP) growth is likely to be 6.2 per cent during the current fiscal (FY20), down from 6.8 per cent in 2018-19.

On the global front, European markets were trading in green, even though Germany's industrial production declined more than expected in June. The data from Destatis showed that industrial production fell 1.5 percent on a monthly basis in June, reversing a revised 0.1 percent rise in May. Output was forecast to drop moderately by 0.5 percent. However, Asian markets were trading in red.

Back home, telecom companies stocks were in focus, after TRAI asked telecom firms to submit status report over complaints regarding pesky calls, on monthly basis starting September, setting in motion a monitoring system for the new framework that aims to check unwarranted telemarketing calls and messages. 

The BSE Sensex is currently trading at 36843.96, down by 132.89 points or 0.36% after trading in a range of 36775.72 and 37104.79. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.40%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.72%, IT up by 0.51%, TECK up by 0.50% and Utilities up by 0.12%, while Metal down by 2.02%, Auto down by 1.60%, PSU down by 1.49%, Energy down by 1.12% and Basic Materials down by 1.10% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.99%, Hindustan Unilever up by 2.18%, Hero MotoCorp up by 1.52%, Sun Pharma up by 1.33% and Indusind Bank up by 1.32%. On the flip side, Mahindra & Mahindra down by 4.88%, Tata Steel down by 4.37%, Tata Motors - DVR down by 3.69%, Tata Motors down by 3.39% and SBI down by 3.30% were the top losers.

Meanwhile, the Reserve Bank of India’s (RBI) monetary policy committee (MPC) has reduced the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points (bps) from 5.75 per cent to 5.40 per cent with immediate effect. The MPC also decided to maintain the accommodative stance of monetary policy.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

The Apex Bank has revised real GDP growth for 2019-20 downwards from 7.0 per cent in the June policy to 6.9 per cent, in the range of 5.8-6.6 per cent for H1:2019-20 and 7.3-7.5 per cent for H2 – with risks somewhat tilted to the downside. GDP growth for Q1:2020-21 is projected at 7.4 per cent.

The MPC further noted that inflation is currently projected to remain within the target over a 12-month ahead horizon. The path of CPI inflation is projected at 3.1 per cent for Q2:2019-20 and 3.5-3.7 per cent for H2:2019-20, with risks evenly balanced. CPI inflation for Q1:2020-21 is projected at 3.6 per cent.

The CNX Nifty is currently trading at 10910.70, down by 37.55 points or 0.34% after trading in a range of 10880.75 and 10975.65. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 7.44%, Yes Bank up by 3.10%, Cipla up by 2.91%, Hindustan Unilever up by 2.16% and Sun Pharma up by 1.60%. On the flip side, Indiabulls Housing Finance down by 11.49%, Mahindra & Mahindra down by 4.62%, Tata Steel down by 4.12%, Tata Motors down by 3.27% and BPCL down by 3.17% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 68.75 points or 0.33% to 20,516.56, Hang Seng decreased 11.67 points or 0.04% to 25,964.57, Taiwan Weighted dropped 8.57 points or 0.08% to 10,386.18, KOSPI fell 7.79 points or 0.41% to 1,909.71 and Shanghai Composite was down by 2.71 points or 0.1% to 2,774.85.On the flip side, Straits Times was up by 10.15 points or 0.32% to 3,180.62 and Jakarta Composite soared 95.06 points or 1.55% to 6,214.53.

All European markets were trading in green; FTSE gained 46.85 points or 0.65% to 7,218.54, CAC rose 54.91 points or 1.05% to 5,289.56 and DAX was up by 139.44 points or 1.21% to 11,707.40.