Benchmarks trade tad below neutral lines in early deals

Indian equity benchmarks made pessimistic start and are trading tad below neutral lines in early deals on Monday amid weakness in Asian peers and ahead of macro-economic data. Gains in Realty, Oil & Gas and PSU stocks were offset by losses in information technology, TECK and Healthcare stocks. Traders were eyeing the macro economic data of industrial production for September to be released after the market hours. Some cautiousness crept in with report that the US and Indian trade negotiators ended talks on Friday without making major progress on a range of disputes over tariffs and other protectionist measures imposed by both sides that are straining bilateral ties. As per the report, Friday's talks were more about understanding each other's positions in various disputes. Market-men were concerned as a private report massively cut its GDP forecast for India to a low 4.9 percent for the year from 5.7 percent earlier, saying the economy is going through a deeper trough and even a sub-par recovery is at least a year away. Though, down side remained capped with the latest depositories data showing that overseas investors remained net buyers in the domestic capital markets with an investment of over Rs 12,000 crore in the first week of November as market sentiments improved following economic reforms by the government.

Global cues also remained sluggish with all the Asian markets were trading in red as uncertainty about a US-China trade deal and rising political turmoil in Hong Kong dampened investor sentiment. According to reports, at least two protesters were injured in Hong Kong after police opened fire at mass demonstrations in the city. Back home, metal stocks were in focus with report that India's move to allow 100% foreign direct investment in coal mining is a positive move and a good policy enabler towards the country's long-term ambition of producing 300 million tonnes of steel per annum.

The BSE Sensex is currently trading at 40268.62, down by 54.99 points or 0.14% after trading in a range of 40192.81 and 40385.61. There were 15 stocks advancing against 15 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.21%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Realty up by 0.33%, Oil & Gas up by 0.25%, PSU up by 0.20%, Telecom up by 0.11% and FMCG was up by 0.08%, while IT down by 0.60%, TECK down by 0.50%, Healthcare down by 0.42%, Auto down by 0.29% and Energy was down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.32%, Tata Motors up by 0.50%, ONGC up by 0.47%, Bharti Airtel up by 0.42% and Tata Steel up by 0.40%. On the flip side, Sun Pharma down by 2.87%, HCL Technologies down by 0.88%, Vedanta down by 0.84%, TCS down by 0.80% and Asian Paints down by 0.64% were the top losers.

Meanwhile, without any breakthrough, the US and Indian trade negotiators have ended their talks on November 08 regarding disputes over tariffs and other protectionist measures imposed by both sides that are damaging bilateral ties. Besides, many of the toughest questions on agricultural commodities, e-commerce, and steel and aluminum, have been put off until commerce and industry minister Piyush Goyal goes to Washington for talks with United States Trade Representative Robert Lighthizer next month. There is hope that some of the issues will be resolved when Goyal goes to Washington.

In the meeting, the US sought the rollback of Indian tariffs imposed on some agricultural products, such as almonds. Those tariffs were imposed by the Indian government in response to the Trump administration's decision to remove trade privileges from Indian products under the Generalized System of Preferences (GSP). India has asked for those privileges, effectively zero tariffs on a range of Indian products entering the United States, to be reinstated. India did not commit to any changes to foreign investment rules for foreign e-commerce firms such as Walmart's Flipkart and Amazon. The rules have forced the two American companies to rework their business strategies for India.

The two sides resumed talks after US President Donald Trump and Prime Minister Narendra Modi met on the sidelines of the G20 summit in June where they agreed to seek to deepen the two countries' relationship. Trump had said that ‘there would be a ‘very big trade deal’ with India, though he set no timeline, and has only this week used Twitter to attack what he says are high Indian tariffs on American goods as unacceptable’.

The CNX Nifty is currently trading at 11904.70, down by 3.45 points or 0.03% after trading in a range of 11864.50 and 11920.30. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.39%, Zee Entertainment up by 0.85%, Indian Oil Corporation up by 0.78%, BPCL up by 0.77% and Tata Motors up by 0.59%. On the flip side, Sun Pharma down by 2.99%, Cipla down by 1.62%, Grasim Industries down by 1.54%, GAIL India down by 1.22% and HCL Technologies down by 0.92% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 580.59 points or 2.1% to 27,070.55, Taiwan Weighted dropped 126.84 points or 1.1% to 11,452.70, Jakarta Composite lost 26.95 points or 0.44% to 6,151.04, Nikkei 225 slipped 52.30 points or 0.22% to 23,339.57, Shanghai Composite declined 36.14 points or 1.22% to 2,928.04, KOSPI fell 13.23 points or 0.62% to 2,124.00 and Straits Times was down by 15.49 points or 0.47% to 3,248.81.