Sluggish trade continues over Dalal Street

Sluggish trade continued over the Dalal Street in late afternoon session, despite firm cues from European markets. Sentiments remained lackluster, as India’s Wholesale price index (WPI) inflation rose to 0.58% in the month of November 2019 as against 0.16% for the previous month and 4.47% during the corresponding month of the previous year. The street paid no heed towards RBI Governor Shaktikanta Das’ statement that the central bank had acted ahead of time by starting to slash rates in February this year, and hoped the decision to pause the cuts earlier this month will prove to be a right call over time.

On the global front, European markets were trading in green, even though Germany's private sector contracted again in December with growth across the service sector continued to be offset by a downturn in manufacturing. The survey results from IHS Markit showed that the composite output index held steady at 49.4 in December. The score was forecast to rise to 50.1. However, Asian markets were trading in red.

Back home, coal industry stocks were in watch, as the Ministry of Coal decided to establish a Sustainable Development Cell (SDC) in order to promote environmentally sustainable coal mining in the country and address environmental concerns during the decommissioning or closure of mines.

The BSE Sensex is currently trading at 41012.56, up by 2.85 points or 0.01% after trading in a range of 40951.15 and 41185.03. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.19%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were IT up by 1.62%, TECK up by 1.25%, Utilities up by 0.46%, Capital Goods up by 0.35% and Healthcare up by 0.34%, while Metal down by 1.16%, FMCG down by 1.08%, Telecom down by 1.01%, Consumer Durables down by 0.74% and Basic Materials down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.93%, Tech Mahindra up by 2.19%, HCL Tech. up by 1.63%, HDFC up by 1.28% and Infosys up by 1.05%. On the flip side, Vedanta down by 1.77%, ITC down by 1.63%, Hindustan Unilever down by 1.40%, Tata Steel down by 1.40% and Tata Motors down by 1.05% were the top losers.

Meanwhile, with an aim to boost economic growth, Chief Economic Advisor Krishnamurthy Subramanian has said the government is focusing on increasing consumption. Highlighting steps taken by government to improve Indian economy, he said the measures include corporate tax cuts to improve risk-return of companies. Also, capitalisation of public sector banks and giving last-mile funding to realty projects was announced.

He further said as much as Rs 4.47 trillion has been sanctioned to non-banking financial institutions and housing finance companies to support retail lending, and added that 17 proposals amounting to Rs 7,657 crore had been approved under partial credit guarantee scheme. Also, 66 per cent of budgeted capex of Rs 3.38 trillion has already undertaken.

Subramanian said railway and road ministries will have undertaken capex of Rs 2.46 trillion by December 31. More than 8 lakh repo-linked loans amounting to Rs 70,000 crore have been sanctioned till November 27. He also said Rs 60,314 crore of capital has been infused into PSU banks. Lenders have disbursed Rs 2.2 trillion to corporates and Rs 72,985 crore to MSMEs.

The CNX Nifty is currently trading at 12084.45, down by 2.25 points or 0.02% after trading in a range of 12061.85 and 12134.65. There were 17 stocks advancing against 32 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were TCS up by 2.99%, Tech Mahindra up by 1.99%, HCL Tech. up by 1.67%, GAIL India up by 1.63% and HDFC up by 1.16%. On the flip side, Grasim Industries down by 2.31%, Vedanta down by 1.97%, Adani Ports &Special down by 1.92%, JSW Steel down by 1.88% and ITC down by 1.66% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 99.88 points or 0.36% to 27,587.88, Nikkei 225 slipped 70.75 points or 0.29% to 23,952.35, KOSPI fell 2.10 points or 0.1% to 2,168.15 and Straits Times trembled 0.46 points or 0.01% to 3,213.59. On the flip side, Shanghai Composite gained 10.51 points or 0.35% to 2,978.19, Taiwan Weighted strengthened 12.04 points or 0.1% to 11,939.77 and Jakarta Composite soared 28.46 points or 0.46% to 6,225.78.

All European markets were trading in green; UK’s FTSE 100 rose 115.23 points or 1.57% to 7,468.67, France’s CAC gained 47.12 points or 0.80% to 5,966.14 and Germany’s DAX was up by 77.18 points or 0.58% to 13,359.90.