Markets continue to show sluggish trend in early noon session

Indian equity markets continued to show sluggish trend in the early noon session, trading with a cut of around half a percent each, with Senxex and Nifty trading below their psychological 40,450 and 11,950 levels, respectively. Cautiousness prevailed in the markets with report that claiming that India will need another 22 years of sustained growth to become a developed country, former Reserve Bank of India (RBI) governor C Rangarajan said that at the current growth rate, India becoming a $5 trillion economy by 2025 is simply out of question. On the global front, Asian markets were trading mostly in green, as optimism eked up with the report that China invited top US negotiators for a new round of trade talks. However, market players were cautious that the deal could call off at any minute after US lawmakers passed a bill supporting Hong Kong rights, causing anger in Beijing. Back on street, market breadth on BSE was negative, out of 2,208 stocks traded, 934 stocks advanced, while 1,145 stocks declined on the BSE. In scrip specific developments, share of RITES slipped after the government announced to sell up to 15 per cent of its holding in the railways' firm, at a discounted price of Rs 293.50 per share via offer for sale (OFS) route. The sale would fetch the government Rs 1,100.6 crore.

The BSE Sensex is currently trading at 40411.31, down by 163.86 points or 0.40% after trading in a range of 40401.06 and 40653.17. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.34%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Power up by 0.78%, Utilities up by 0.60%, Metal up by 0.54%, Energy up by 0.48% and PSU up by 0.31%, while IT down by 2.06%, TECK down by 1.84%, Capital Goods down by 1.02%, Telecom down by 1.01% and Consumer Durables was down by 0.88% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.41%, ITC up by 2.20%, NTPC up by 2.17%, Power Grid Corporation up by 1.76% and ONGC was up by 1.68%. On the flip side, Infosys down by 2.76%, Tech Mahindra down by 2.38%, HCL Technologies down by 1.99%, TCS down by 1.74% and Tata Motors - DVR was down by 1.53% were the top losers.

Meanwhile, welcoming the government's decision to defer receipt of spectrum auction installments due from telecom service providers for years 2020-2021 & 2021-2022, India Inc has said that the move will provide headroom to the debt-laden telecom sector, generate employment opportunities for the potential workforce, drive consumer demand sentiments in the economy, provide further impetus and pave way to achieve $5 trillion economy going forward. The government doled out an Rs 42,000 crore relief to telecom companies after it agreed not to take any payments for spectrum they use for the next two years.

PHD Chamber of Commerce and Industry President D K Aggarwal said that this is a great breakthrough in the economic reform system and will have a positive impact on the growth and development of telecom sector and the economy as a whole. He also pointed out that deferment of spectrum auction installments will provide a pronounced relief to stressed telecom service providers leading to their continuous operations, ease their cash outflow and give them window to make payments for statutory liabilities and interest on bank loans. Besides, Ficci President Sandip Somany stated the move should provide some headroom to the telecom sector in the country as it is seeing a lot of stress.

Describing the strategic sale of central public sector enterprises (CPSEs) as a major reform, Assocham President BK Goenka said the decision reflects the clear mind set of the government about steadily moving out of businesses. He also said the underlying thinking is that the government has no business to be in business. He added that it is a welcome and a major policy change.

The CNX Nifty is currently trading at 11920.75, down by 47.65 points or 0.40% after trading in a range of 11916.30 and 11968.10. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.55%, Yes Bank up by 2.33%, ITC up by 2.06%, NTPC up by 1.95% and ONGC was up by 1.64%. On the flip side, Bharti Infratel down by 4.86%, Infosys down by 2.67%, Tech Mahindra down by 2.46%, HCL Technologies down by 1.91% and TCS was down by 1.79% were the top losers.

Asian markets were trading mostly in green; Straits Times advanced 22.16 points or 0.69% to 3,214.37, Nikkei 225 surged 96.17 points or 0.42% to 23,134.75, KOSPI rose 5.83 points or 0.28% to 2,102.43, Hang Seng increased 67.77 points or 0.26% to 26,534.65 and Taiwan Weighted was up by 8.53 points or 0.07% to 11,566.80.

On the flip side, Jakarta Composite lost 20.64 points or 0.34% to 6,096.72 and Shanghai Composite was down by 10.73 points or 0.37% to 2,892.91.