Sensex, Nifty continue to linger under pressure

Indian equity bourses continued to linger under pressure in late afternoon session, on account of weak cues from European markets. Sentiments over the street got further hit, after India Ratings and Research (Ind-Ra) said that the aggregate fiscal deficit of states will touch 3 per cent gross domestic product (GDP) in FY20 against the budgeted figure of 2.6 per cent. The fiscal slippage will originate from a decline in tax revenue, a lower nominal GDP and higher expenditure. Traders paid no heed towards reports that enthused by a record foreign investment inflow, India is optimistic of continuing to be one of the world's favorite FDI destinations in 2020 on the back of the Modi government's liberalized norms and a significant jump in the ease of doing business ranking.

On the global front, European markets were trading mixed, after Turkey's trade deficit increased sharply in November, driven by higher imports. The data from the Turkish Statistical Institute showed that the trade deficit widened to $2.23 billion from $672 million a year ago. Exports coverage imports was 87.4 percent, while it was 95.8 percent in November 2018. Asian markets were also trading mixed, as overall consumer prices in South Korea were up 0.7 percent on year in December, accelerating from the 0.2 percent increase in the previous month. On a monthly basis, overall inflation rose 0.2 percent after skidding 0.6 percent in November.

The BSE Sensex is currently trading at 41395.79, down by 162.21 points or 0.39% after trading in a range of 41349.61 and 41607.49. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Utilities up by 1.10%, Power up by 0.92%, PSU up by 0.67%, Realty up by 0.50% and Metal was up by 0.27%, while Energy down by 0.63%, Auto down by 0.45%, TECK down by 0.38%, Consumer Disc down by 0.37% and Capital Goods was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.06%, Power Grid up by 0.97%, Sun Pharma up by 0.92%, Axis Bank up by 0.88% and ONGC was up by 0.78%. On the flip side, Tech Mahindra down by 2.31%, Bajaj Auto down by 1.75%, Reliance Industries down by 1.13%, Indusind Bank down by 1.12% and Nestle was down by 1.06% were the top losers.

Meanwhile, in order to make the sectors technologically more advanced and vibrant, Steel Minister Dharmendra Pradhan has urged the steel and mining industry to undertake research activities. He noted that these research activities will build the foundation for an advanced and vibrant sector.

Pradhan further underlined that the industry should adopt an outcome oriented approach to contribute towards national economic growth, adding that innovation will be key to create a knowledge based entrepreneurial ecosystem. The minister also lauded the institute for developing technology to utilise low grade iron ore and thermal grade coal for the industry.

Besides, the Steel Minister said that if the indigenous technology developed by CSIR-IMMT is commercial viable they can bring a great change in the industry in India and Odisha and added that the state can script a new chapter in the next wave of growth of Indian steel and minerals industry.

The CNX Nifty is currently trading at 12209.95, down by 45.90 points or 0.37% after trading in a range of 12195.05 and 12247.10. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.62%, NTPC up by 2.15%, GAIL India up by 1.93%, Tata Motors up by 1.33% and Grasim Industries was up by 1.05%. On the flip side, Zee Entertainment down by 2.77%, Tech Mahindra down by 2.35%, Bajaj Auto down by 1.60%, Reliance Industries down by 1.19% and Indusind Bank was down by 1.19% were the top losers.

Asian markets were trading mixed; Shanghai Composite gained 9.53 points or 0.31% to 3,049.55 and Straits Times was up by 0.39 points or 0.01% to 3,222.83. On the flips side, Taiwan Weighted dropped 56.23 points or 0.47% to 11,997.14 and Hang Seng was down by 129.64 points or 0.46% to 28,189.75.

European markets were trading mixed; UK’s FTSE 100 lost 29.99 points or 0.40% to 7,557.06, while France’s CAC was up by 2.30 points or 0.04% to 5,984.52.