Local equities drifting lower amid weak global cues

Local equity benchmarks continued to show a sluggish trend in morning session, with losses of over one third a percent, amid weak global cues. Market participants remained cautious on a private report that the government might breach the fiscal deficit target this financial year amid drop in the revenue mobilisation and expected additional expenditure by the government. However, losses remain capped with Commerce and Industry Minister Piyush Goyal’s statement that his ministry will review all existing free trade agreements with different countries to protect interest of industry and traders. He added India also decided to walk out from the Regional Comprehensive Economic Partnership agreement keeping in view the interest of small traders and dairy industry. Besides, the Reserve Bank of India has bought Rs 10,000 crore of long-term government securities and sold Rs 8,501 crore of three short-term bonds. Though RBI offered to sell four securities in the auction, it accepted bids for three bids only.

On the global front, Asian markets were trading mostly in red, echoing falls on Wall Street, as investors locked in gains made since the US and China reached a preliminary trade deal earlier this month. Back home, the government is working to formulate technical regulations, which includes safety and quality standards, for over 350 products with a view to cut imports of those non-essential items.

The BSE Sensex is currently trading at 41395.95, down by 162.05 points or 0.39% after trading in a range of 41383.33 and 41607.49. There were 6 stocks advancing against 23 stocks declining, while 2 stocks remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.14%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were Utilities up by 0.38%, Realty up by 0.36%, Telecom up by 0.29%, Healthcare up by 0.27% and Metal was up by 0.27%, while IT down by 0.53%, Auto down by 0.49%, TECK down by 0.42%, BANKEX down by 0.37% and Energy was down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 0.67%, Power Grid up by 0.39%, Titan Company up by 0.26%, Hindustan Unilever up by 0.17% and Sun Pharma was up by 0.14%. On the flip side, Tech Mahindra down by 1.89%, IndusInd Bank down by 1.08%, HCL Tech down by 0.84%, Maruti Suzuki down by 0.74% and ICICI Bank was down by 0.73% were the top losers.

Meanwhile, in order to protect interest of industry and traders, Commerce and Industry Minister Piyush Goyal has said his ministry will review all existing free trade agreements (FTAs) with different countries. He said India also decided to walk out from the Regional Comprehensive Economic Partnership agreement, keeping in view the interest of small traders and dairy industry.

The minister mentioned that FTAs with countries like Japan, South Korea, and Association of Southeast Asian Nations (Asean) provided duty-free access to Indian markets, but domestic goods face barriers in these countries. These unfair pacts did not benefited Indian traders and industry. He said ‘I want to assure you that the commerce ministry will open the old FTAs and hold discussions with these countries.’

Besides, he said that the Delhi Development Authority (DDA) will authorise small shops running in over 100 colonies in the national capital. He said that the move would benefit 50,000 small and marginal traders in Delhi.

The CNX Nifty is currently trading at 12210.75, down by 45.10 points or 0.37% after trading in a range of 12205.50 and 12247.10. There were 18 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.48%, Bharti Infratel up by 1.19%, GAIL India up by 1.01%, Yes Bank up by 0.95% and Dr. Reddy’s Lab was up by 0.65%. On the flip side, Tech Mahindra down by 1.93%, IndusInd Bank down by 1.14%, Wipro down by 1.04%, Eicher Motors down by 0.99% and HDFC Bank was down by 0.77% were the top losers.

Asian markets are trading mostly in red, Hang Seng decreased 129.64 points or 0.46% to 28,189.75, Taiwan Weighted dropped 42.77 points or 0.35% to 12,010.60, Shanghai Composite was down by 1.76 points or 0.06% to 3,038.26. On the other side, Straits Times was up by 0.39 points or 0.01% to 3,222.83.