Local equities slip into negative trajectory

Tracking weak global cues, local equity benchmarks expunged all the gains to slip into negative trajectory in morning session, on account of selling in frontline counters amid concerns about the global economic impact of the fast-spreading Wuhan coronavirus. Investors turned concerned with Nobel laureate and economist Abhijit Banerjee’s statement that the country could be passing through a phase of recession, and there is ‘nothing in the data’ that suggests otherwise. He added that the priority of the government should be on refinancing the banking sector, which is in ‘doldrums’. However, losses remain capped with a report that Finance Minister Nirmala Sitharaman's first full year Budget is expected to provide short-term stimulants to boost consumer demand, and such measures will get a positive response from markets. Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 438.85 crore on January 27.

On the global front, Asian markets are trading lower, on deepening worries over the expanding outbreak of a new virus in China. Markets in Hong Kong and mainland China were closed for Lunar New Year holidays. Back home, Commerce and Industry Minister Piyush Goyal has asked the traders to promote swadeshi by selling and consuming local products, saying it will help in boosting economic growth to double digits. He exhorted domestic traders to pay heed to the call given by Prime Minister Narendra Modi to promote swadeshi products.

The BSE Sensex is currently trading at 41129.38, down by 25.74 points or 0.06% after trading in a range of 41101.51 and 41333.25. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.24%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Auto up by 0.37%, Healthcare up by 0.27%, Consumer Durables up by 0.10%, BANKEX up by 0.04%, Consumer Discretionary was up by 0.01%, while Metal down by 1.81%, Telecom down by 1.50%, Power down by 1.22%, Energy down by 0.76%, Utilities was down by 0.75% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.51%, Sun Pharma up by 2.15%, Hero MotoCorp up by 1.67%, Mahindra & Mahindra up by 0.76% and Bajaj Auto was up by 0.48%. On the flip side, Tata Steel down by 2.16%, NTPC down by 1.73%, Bharti Airtel down by 1.62%, Nestle down by 1.57% and Power Grid was down by 1.56% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has said that urban cooperative banks (UCBs) have reported 972 cases of fraud worth Rs 221 crore in the last five fiscals (during FY15 and FY19). RBI said a total of 181 fraud cases involving Rs 127.7 crore were noticed during 2018-19 (FY19).

A total of 99 and 27 such cases involving Rs 46.9 crore and Rs 9.3 crore were reported during 2017-18 (FY18) and 2016-17 (FY17) respectively. As many as 187 cases of fraud involving Rs 17.3 crore were reported in 2015-16 (FY16) as against 478 such cases involving Rs 19.8 crore during 2014-15 (FY15).

RBI mentioned that cases of frauds reported to RBI are required to be filed by banks as criminal complaints with law enforcement agencies. Banks are required to look into aspects of staff accountability and punish the guilty through internal proceedings.

The CNX Nifty is currently trading at 12102.95, down by 16.05 points or 0.13% after trading in a range of 12095.35 and 12163.55. There were 17 stocks advancing against 32 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were HDFC up by 2.50%, Sun Pharma up by 2.14%, Hero MotoCorp up by 1.72%, BPCL up by 1.56% and Dr. Reddy’s Lab was up by 1.29%. On the flip side, Vedanta down by 2.86%, JSW Steel down by 2.34%, Tata Steel down by 2.21%, NTPC down by 1.90% and Bharti Airtel was down by 1.65% were the top losers.

Asian markets are trading in red, Nikkei 225 slipped 189.73 points or 0.81% to 23,153.78, Straits Times trembled 84.03 points or 2.59% to 3,155.99, KOSPI fell 70.20 points or 3.13% to 2,175.93 and Jakarta Composite was down by 60.97 points or 0.99% to 6,072.24.