Benchmarks continue lackluster trade slightly in red

Indian equity benchmarks continued their lackluster trade slightly in red in afternoon session, as caution set in ahead of Consumer Price Index (CPI) data for October scheduled to be released today. Investors’ sentiment remain dented with report stated that venture investment activity in India slowed down both by value and deal volumes in October to $3.312 billion in 91 transactions on account of poor show by the realty sector. Traders also took a note of Former Niti Aayog vice-chairman Arvind Panagariya’s statement that India should join the Regional Comprehensive Economic Partnership (RCEP) as it would help the country adopt a more liberal trade policy regime and boost exports. On the sectoral front, jewellery stocks remained in focus with data given by the Gems and Jewellery Export Promotion Council (GJEPC) showing that the gems and jewellery exports continued to be affected following geopolitical tensions as the overall shipments in October declined by 5.49 per cent to Rs 24,583.19 crore compared to the same month last year. The exports stood at Rs 26,010.87 crore in October 2018.

On the global front, Asian markets were trading in red, as confusing signals over the extent of progress made in U.S.-China trade talks and concern about intensifying unrest in Hong Kong hurt demand for risky assets. Back home, the BSE Sensex is currently trading at 40303.15, down by 41.93 points or 0.10% after trading in a range of 40279.11 and 40447.17. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.31%, while Small cap index was down by 0.71%.

The top gaining sectoral indices on the BSE were Energy up by 1.51%, IT up by 0.47%, Auto up by 0.41%, TECK up by 0.13% and Consumer Durables was up by 0.08%, while Capital Goods down by 1.42%, Telecom down by 1.02%, Industrials down by 1.01%, Utilities down by 0.88% and Power was down by 0.86% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.11%, Reliance Industries up by 2.56%, Tata Motors up by 1.10%, Tata Steel up by 1.05% and Tata Motors - DVR was up by 1.00%. On the flip side, Larsen & Toubro down by 1.65%, Yes Bank down by 1.64%, Tech Mahindra down by 1.34%, ITC down by 1.29% and SBI was down by 1.27% were the top losers.

Meanwhile, Union minister for chemicals and fertilisers Sadananda Gowda has said that the chemicals and fertilisers sector has the potential to contribute over $300 billion to Gross domestic products (GDP) over the next five years when the economy is slated to scale the $5-trillion-mount. He also said that the sector, which currently contributes nearly 7.76 percent of manufacturing now, has the potential to reach 20-25 percent in the next five years.

Assuring the industry of all the necessary support, Gowda urged the stakeholders need to work hard to realize its full potential and said certainly this is not an impossible target. He also said “though I am satisfied at the present growth rate, I believe we can grow faster on the back of the right policies.” He stated that with per capita income steadily increasing, the mid income population presents a huge market. He also expects the chemical industry to grow at 9 percent annually over the next five years.

The minister further said that the government is committed to provide a predictable and market-friendly policy framework to enable companies to take investment decisions and pointed to the enabling reforms such as GST, relaxed FDI norms, labour reforms and bankruptcy laws. He noted that these initiatives have made the country one of the most attractive investment destinations leading to an inflow of $280 billion foreign capital during the past five years alone. He added that the government has already approved setting up of four petroleum, chemicals and petrochemical investment regions in Gujarat, Andhra Pradesh, Odisha and Tamil Nadu. Upon completion, he said these regions will be home to around Rs 8 lakh crore investments, and are likely to generate over 4 million jobs.

The CNX Nifty is currently trading at 11895.15, down by 18.30 points or 0.15% after trading in a range of 11890.40 and 11946.80. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Britannia Industries up by 4.40%, TCS up by 3.07%, Reliance Industries up by 2.60%, Eicher Motors up by 1.28% and Tata Motors was up by 1.10%. On the flip side, Zee Entertainment down by 3.90%, GAIL India down by 3.87%, Adani Ports &SEZ down by 3.47%, Grasim Industries down by 2.37% and Yes Bank was down by 1.64% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 200.14 points or 0.85% to 23,319.87, Jakarta Composite lost 21.75 points or 0.35% to 6,159.24, KOSPI fell 18.47 points or 0.86% to 2,122.45, Shanghai Composite declined 14.06 points or 0.48% to 2,900.76, Straits Times trembled 25.13 points or 0.77% to 3,242.67, Taiwan Weighted dropped 52.54 points or 0.46% to 11,467.83 and Hang Seng was down by 552.35 points or 2.04% to 26,512.93.