Benchmarks continue lackadaisical trade in afternoon deals

Barometer gauges continue to reel under pressure in afternoon session, despite positive trend seen in Asian markets. Benchmarks are trading with cut of above one-third of a percent. Weak broader indices along with sell off at Yes Bank, SBI, Indusind Bank and Mahindra & Mahindra counters dragged the markets lower. In the sectoral indices on the BSE front, steel stocks remained in focus with the private report that Exports of semi-fished and finished steel products from India declined by 32% in 2018, to 11.10 million tonnes (mt) compared to the 16.33 mt in 2017. Investors’ sentiment dented with Reserve Bank of India’s consumer confidence survey (CCS) which highlighted that a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. Meanwhile, expressing disappointment at the RBI’s decision to keep interest rates unchanged, industry body FICCI stated that there is a need for continued action on the policy rate front to boost growth.

On the global front, Asian markets were trading in green as investors took support from US President Donald Trump statement that trade talks with China were ‘moving right along’, and U.S. oil prices sat near 2-1/2-month highs after OPEC and other producers agreed to cut output.

The BSE Sensex is currently trading at 40622.89, down by 156.70 points or 0.38% after trading in a range of 40582.23 and 40952.13. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.74%, while Small cap index was down by 0.56%.

The only gaining sectoral indices on the BSE were Telecom up by 0.27%, while PSU down by 1.59%, Realty down by 1.53%, Auto down by 1.00%, Capital Goods down by 0.91% and Power was down by 0.86% were top the losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.46%, Kotak Mahindra Bank up by 1.38%, HDFC Bank up by 0.94%, ICICI Bank up by 0.47% and HCL Tech was up by 0.28%. On the flip side, Yes Bank down by 8.05%, SBI down by 3.66%, Mahindra & Mahindra down by 1.99%, Tata Motors down by 1.93% and Indusind Bank was down by 1.84% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has hoped that the target of Rs 5 lakh crore business through Government e-Marketplace (GeM) can be achieved in less than five years given the large number of procurement made through the platform. He also said that GeM symbolizes a transparent and corruption free procurement system and it will unify all government procurement, across all ministries and departments of Union and state governments within a defined timeframe. He added that GeM should take a high jump and be now open to common man, so that they benefit from lower cost of products and services that are available on GeM. 

Considering that GeM is unique in various ways as it does not operate on any algorithms to support/ promote any product or supplier and also does not solicit any business through advertisements, deep discounts, predatory pricing, Goyal said it will help reduce corruption in public procurement in the country. He also said that GeM focusses on giving balanced and fair access to all suppliers in an agnostic manner in market place. He noted that Make in India should be given preference through GeM portal by giving preference to products and services of India.

The minister further stressed to take the GeM portal to the next level wherein all contractors/ sub-contractors of government departments and PSUs should procure from GeM. He warned that the quality of products and services must not be compromised, and stringent mechanisms like blacklisting be put in place against any poor quality product or services. 

The CNX Nifty is currently trading at 11970.00, down by 48.40 points or 0.40% after trading in a range of 11958.25 and 12057.05. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 4.45%, Dr. Reddys Lab up by 2.27%, Asian Paints up by 1.39%, Kotak Mahindra Bank up by 1.38% and HDFC Bank was up by 0.90%. On the flip side, Yes Bank down by 8.13%, Zee Entertainment down by 4.22%, SBI down by 3.63%, Mahindra & Mahindra down by 2.07% and Tata Motors was down by 1.90% were the top losers.

All Asian market were trading in green; Shanghai Composite gained 3.88 points or 0.13% to 2,903.35, Straits Times advanced 5.78 points or 0.18% to 3,179.97, Jakarta Composite soared 10.82 points or 0.18% to 6,162.94, Taiwan Weighted strengthened 14.99 points or 0.13% to 11,609.64, KOSPI rose 21.11 points or 1.02% to 2,081.85, Nikkei 225 surged 54.31 points or 0.23% to 23,354.40 and Hang Seng was up by 221.64 points or 0.85% to 26,438.68.