Markets trade near day's low on incremental selling pressure

Extending their early losses, the local equity markets continued weak trade and were trading near day’s low in afternoon session, on the back of sustained selling activities by market-participants. Investor sentiment remained weak with a private report indicating that lose-monetary policy alone cannot arrest the deepening slump, instead government must take demand-boosting measures, especially in rural areas, by frontloading expenditure primarily through the national rural employment scheme. It also warned that any attempt to trim government spending to maintain the fiscal numbers will be severely detrimental to growth. Moreover, weak global cues and rupee depreciation against the US dollar, weighed on the sentiments. The market participants overlooked a report stating that the government expects a 30% rise in export credit disbursals by the end of 2019-20 through greater insurance coverage of exporters and easier inspection norms.

On the global front, Asian markets were mostly trading in red, after an attack on Saudi Arabia's biggest oil processing plant caused crude prices to soar, prompting selling of airlines and other fuel-dependent industries. Back home, the BSE Sensex is currently trading at 36789.05, down by 334.26 points or 0.90% after trading in a range of 36789.05 and 37169.56. 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 0.45%, while Small cap index was down by 0.39%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.54%, while Telecom down by 2.06%, Auto down by 1.44%, Capital Goods down by 1.20%, TECK down by 1.08% and Industrials was down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 1.51%, Asian Paints up by 0.93%, Hindustan Unilever up by 0.88%, Yes Bank up by 0.60% and ONGC was up by 0.42%. On the flip side, Tata Motors - DVR down by 2.88%, Axis Bank down by 2.75%, Tech Mahindra down by 2.64%, Bharti Airtel down by 2.49% and Hero MotoCorp was down by 2.31% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is in continuous dialogue for past several months with the US and they are working towards early resolution of trade related issues. He also said both the countries are negotiating a trade package by ironing out trade issues with an aim to promote the two-way commerce.

Goyal has noted that India is pressing for exemption from high duty imposed by the US on certain steel and aluminium products, resumption of export benefits to some domestic goods under their Generalised System of Preferences (GSP) as well as greater market access for its products from sectors such as agriculture, automobile, auto components and engineering. On the other hand, he said the US is demanding greater market access through cut in import duties for its agriculture goods, dairy products, medical devices, IT and communication items.

Talking about the Regional Comprehensive Economic Partnership (RCEP), a proposed free trade agreement, the minister said India has decided to conduct a meeting through video conference with rest of the 15 members on certain issues. He also said “we have put forward certain proposals. If there is any surge in import of any product, we can take quick remedial measures and the interest of domestic industry is protected.” He added that this proposal assumes importance as India has registered trade deficit in 2018-19 with as many as 11 RCEP member countries - including China, South Korea and Australia - out of the grouping of 16 nations that are negotiating a mega trade pact since November 2012.

The CNX Nifty is currently trading at 10909.05, down by 94.45 points or 0.86% after trading in a range of 10906.75 and 11000.10. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 1.45%, Titan Company up by 1.42%, GAIL India up by 1.35%, Asian Paints up by 0.97% and Hindustan Unilever was up by 0.79%. On the flip side, Tech Mahindra down by 2.70%, Axis Bank down by 2.67%, Bharti Airtel down by 2.38%, Hero MotoCorp down by 2.28% and Cipla was down by 2.19% were the top losers.

Asian markets were mostly trading in red; Hang Seng decreased 393.20 points or 1.45% to 26,731.35, Shanghai Composite declined 52.86 points or 1.74% to 2,977.89, Taiwan Weighted dropped 23.63 points or 0.22% to 10,874.50 and Straits Times was down by 17.35 points or 0.54% to 3,186.58.

On the flip side, KOSPI rose 0.11 points or 0.01% to 2,062.33, Jakarta Composite soared 8.61 points or 0.14% to 6,228.05 and Nikkei 225 was up by 13.03 points or 0.06% to 22,001.32.