Weak trade persists over Dalal Street

Weak trade continued over Dalal Street in late afternoon session, despite firm cues from European markets. Domestic sentiments remained lackluster as credit rating agency ICRA expects further deterioration in the growth of India's GDP to 4.7 per cent in Q2 of FY2020, due to weakening momentum in industry. The street paid no heed towards the Confederation of Indian Industry’s (CII) jointly survey report, conducted along with Grant Thornton, that over 95 percent of businesses believe that good corporate governance practices help organizations achieve better operational and financial results.

On the global front, European markets were trading in green, as France private sector logged strong growth in November. The flash survey data from IHS Markit showed that the composite output index rose slightly to 52.7 in November from 52.6 in October, but below the forecast of 52.8. Asian markets were also trading in green, despite Japan's private sector continued to contract in November but moved closer to stagnation. The survey data from IHS Markit showed that the Jibun Bank flash composite output index rose to 49.9 in November from 49.1 in October. A score below 50 indicates contraction in the sector.

The BSE Sensex is currently trading at 40319.10, down by 256.07 points or 0.63% after trading in a range of 40276.83 and 40653.17. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.41%, while Small cap index was down by 0.11%.

The top gaining sectoral indices on the BSE were Metal up by 1.20%, Power up by 0.73%, Utilities up by 0.68%, PSU up by 0.31% and Energy up by 0.22%, while IT down by 2.24%, TECK down by 2.03%, Telecom down by 1.48%, Consumer Durables down by 1.15% and Capital Goods down by 1.13% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.30%, ONGC up by 1.98%, Power Grid up by 1.97%, Vedanta up by 1.73% and Tata Steel up by 1.73%. On the flip side, Infosys down by 3.08%, Asian Paints down by 2.16%, TCS down by 1.98%, HCL Tech. down by 1.96% and Kotak Mahindra Bank down by 1.63% were the top losers.

Meanwhile, the Confederation of Indian Industry (CII), in its jointly survey report conducted along with Grant Thornton, has stated over 95 percent of businesses believe that good corporate governance practices help organizations achieve better operational and financial results. The survey covered 107 companies across industries between October 2019 and November 2019

As per the report, 93 percent corporates identified culture as an important catalyst for implementing strong corporate governance, while as many as 75 percent of the respondents believe that mandatory corporate governance practices should be extended to unlisted companies.

Meanwhile, the other parameters taken in the survey include the absence of formal training programs on corporate governance for the board of directors and key managerial personnel, cost of implementation as major challenges in implementing corporate governance practices, the role of technology in improving the corporate governance practices, among others.

The CNX Nifty is currently trading at 11894.65, down by 73.75 points or 0.62% after trading in a range of 11883.50 and 11968.10. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 3.71%, Eicher Motors up by 2.24%, NTPC up by 2.12%, ONGC up by 1.87% and Tata Steel up by 1.87%. On the flip side, Bharti Infratel down by 4.24%, Infosys down by 3.04%, UPL down by 2.32%, Asian Paints down by 2.18% and TCS down by 2.11% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 74.30 points or 0.32% to 23,112.88, Hang Seng increased 61.06 points or 0.23% to 26,527.94, Straits Times advanced 20.71 points or 0.65% to 3,212.92, Taiwan Weighted strengthened 8.53 points or 0.07% to 11,566.80 and KOSPI was up by 5.36 points or 0.26% to 2,101.96. On the flip side, Jakarta Composite lost 20.64 points or 0.34% to 6,096.72 and Shanghai Composite was down by 22.02 points or 0.76% to 2,881.62.

All European markets were trading in green; FTSE gained 79.10 points or 1.09% to 7,317.65, CAC rose 37.53 points or 0.64% to 5,918.74 and DAX was up by 78.68 points or 0.60% to 13,216.38.