Bourses remain under pressure

Indian equity bourses remained under pressure in late afternoon session, tracking weak European markets. The broader markets were too following the larger peers, while Yes Bank performed worst among major industry leaders on the BSE. Traders were taking note of reports that Chief economic advisor K Subramanian called for a ‘mindset change’ in the private sector by desisting from the tendency to grab profit and socialise losses and also seek sops in times of stress. He also said it will be only investment and not consumption that will help the economy grow.

On the global front, European markets were trading in red, even after the euro area private sector grew at a moderate pace in August. The flash survey data from IHS Markit showed that the composite output index rose unexpectedly to 51.8 in August from a 3-month low of 51.5 in July. Asian markets were trading mixed.

The BSE Sensex is currently trading at 36618.88, down by 441.49 points or 1.19% after trading in a range of 36602.38 and 37087.58. There were 5 stocks advancing against 25 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 1.29%, while Small cap index was down by 2.06%.

The few gaining sectoral indices on the BSE were IT up by 0.57%, TECK up by 0.28% and FMCG up by 0.07%, while Realty down by 5.36%, Metal down by 3.97%, PSU down by 3.09%, Oil & Gas down by 2.49% and Basic Materials down by 2.35% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.78%, Hindustan Unilever up by 1.30%, Tech Mahindra up by 1.21%, HCL Tech up by 1.15% and Axis Bank up by 0.05%. On the flip side, Yes Bank down by 17.81%, Vedanta down by 8.51%, Tata Motors down by 5.12%, Tata Motors - DVR down by 4.07% and ONGC down by 3.67% were the top losers.

Meanwhile, the government has initiated steps to implement provisions of the Motor Vehicles Act 2019, and 63 clauses which do not require framing of new rules are likely to be implemented from September 1 subject to clearance from the law ministry. Minister for Road Transport and Highways Nitin Gadkari has said that sixty three clauses which do not require framing of new rules have been sent to the law ministry for vetting. These clauses deal with penalties, licences, registration and National Transport Policy, among others.

Regarding the other clauses for which rules have to be framed, Gadkari said steps for this have already been initiated by the ministry, and rules will be notified as and when the due processes are completed. The minister also expressed happiness that the Motor Vehicles Act (MVA) 2019 has become a reality, saying this will go a long way in giving the country a safe and corruption free road transport system. He further said the National Transport Policy that will be brought in under the Act will help in developing an efficient, multi-modal transport system.

Gadkari expressed hope that MVA 2019 will help curb road accidents and bring down fatalities. He said the ministry is spending Rs 12,000 crore towards rectification of 786 accident black spots identified by the NHAI. In addition, talks are on with the World Bank and Asian Development Bank (ADB) for another programme worth Rs 14,000 crore for rectification of black spots on national, state and district highways. The minister also announced that FASTags will become mandatory for all vehicles from December this year. FASTag is a reloadable tag which enables automatic deduction of charges at toll plazas.

The CNX Nifty is currently trading at 10780.30, down by 138.40 points or 1.27% after trading in a range of 10774.05 and 10908.25. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Britannia up by 2.88%, TCS up by 1.77%, Dr. Reddy’s Lab up by 1.64%, Hindustan Unilever up by 1.30% and HCL Tech. up by 1.27%. On the flip side, Yes Bank down by 17.66%, Vedanta down by 8.68%, Indiabulls Housing Finance down by 7.42%, Tata Motors down by 5.25% and Coal India down by 5.16% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 9.44 points or 0.05% to 20,628.01, Taiwan Weighted strengthened 3.98 points or 0.04% to 10,529.78, Straits Times advanced 3.47 points or 0.11% to 3,126.04 and Shanghai Composite gained 2.96 points or 0.1% to 2,883.29. On the flip side, KOSPI fell 13.64 points or 0.69% to 1,951.01, Jakarta Composite lost 36.15 points or 0.58% to 6,216.82 and Hang Seng decreased 257.57 points or 0.98% to 26,012.47.

All European markets were trading in red; FTSE lost 45.51 points or 0.63% to 7,158.46, CAC fell 23.68 points or 0.44% to 5,411.80 and DAX was down by 38.30 points or 0.32% to 11,764.55.