Markets continue to trade in red in early noon deals

Indian equity benchmarks continued to trade in red in early noon session amid selling witnessed in frontline blue chip stocks. Realty and Auto index were the top losers on BSE down by over 1% followed by Metal and Consumer Discretionary both down by over 0.80%. Investors remained concerned with a private report that surging inflation and slowing growth are raising serious concerns about the future growth prospects of the economy and as a remedial measure the government should resolve supply side hurdles and ensure more stringent governance norms. On stock specific movements, Mahindra & Mahindra, Tata Steel and Asian Paints were trading down by over 2% on BSE.

On the global front, Asian markets were trading mostly in red after the IMF estimated world economic growth at 1.9 per cent for 2019, 0.1 percentage point lower than its earlier forecast. Similarly, it projected the global economy to grow by 3.3 per cent in the current calendar year, 0.1 percentage point lower than its previous estimates, and 3.4 per cent in 2022, 0.2 percentage points below its earlier estimates. Back home, the market breadth on BSE was negative, out of 2,279 stocks traded, 897 stocks advanced, while 1,233 stocks declined on the BSE, while 149 stocks remain unchanged.

The BSE Sensex is currently trading at 41370.68, down by 158.23 points or 0.38% after trading in a range of 41301.63 and 41532.59. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.26%, while Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were Telecom up by 1.03%, Energy up by 0.30%, Oil & Gas up by 0.11%, TECK up by 0.08% and Healthcare was up by 0.03%, while Realty down by 1.14%, Auto down by 1.02%, Metal down by 0.85%, Consumer Discretionary down by 0.83% and Consumer Durables was down by 0.80% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.43%, Reliance Industries up by 0.33%, Tech Mahindra up by 0.21%, NTPC up by 0.21% and ICICI Bank was up by 0.20%. On the flip side, Mahindra & Mahindra down by 2.21%, Tata Steel down by 2.21%, Asian Paints down by 2.03%, Power Grid Corporation down by 1.66% and Titan Company was down by 1.62% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that the government's earnest attempt, which continues till today, is to decriminalize matters concerning the Companies Law or related acts. She said it was one of the initiatives the government had planned as part of steps towards making India $5 trillion economy, ensuring trust between the government and businesses.

The minister has stated that in Companies Law, there are a number of sections leading to a criminal approach and penalties of even jail terms. She said 'I had gone through this with a tooth comb. Decriminalising Companies Law ensuring no other act of Government whether it is Income Tax or your PMLA (Prevention of Money Laundering Act) will have such an impact. We are making sure that aspect will be addressed.' Elaborating further, she said 'we do not want a law which is going to treat every business house with suspicion. That is not the intent of this government at all'.

Earlier, to a query posed by a member of the audience that the government was pumping money into banks which had huge non-performing assets, Sitharaman said banks are required to perform critical functions in an economy. She also said ‘once PA was around Rs 10 lakh crore. It has come down to Rs 8 lakh crore, it has further come down now. When we are talking about NPA and when money is given to banks, it is not that the banks need to take that money and happy with that...go after those who failed the bank by not paying dues. Get the money back.’

The CNX Nifty is currently trading at 12180.10, down by 44.45 points or 0.36% after trading in a range of 12162.45 and 12230.05. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 5.81%, Zee Entertainment up by 2.38%, Coal India up by 1.52%, ONGC up by 0.90% and Reliance Industries was up by 0.31%. On the flip side, Mahindra & Mahindra down by 2.30%, Tata Steel down by 2.17%, JSW Steel down by 2.16%, Asian Paints down by 2.10% and Titan Company was down by 1.69% were the top losers.

Asian markets were trading mostly in red, KOSPI fell 18.79 points or 0.83% to 2,243.85, Nikkei 225 slipped 211.16 points or 0.88% to 23,872.35, Shanghai Composite declined 38.07 points or 1.23% to 3,057.72, Hang Seng decreased 697.19 points or 2.42% to 28,098.72 and Straits Times was down by 36.64 points or 1.12% to 3,243.45. On the other hand, Jakarta Composite was up by 1.79 points or 0.03% to 6,246.83.