Bourses fail to hold gains; Nifty below 12,100 mark

Indian equity benchmarks once again entered into negative territory in late afternoon session despite firm cues from European markets. Broader indices, BSE Mid cap and Small cap are also trading under pressure. Selling in frontline blue chip stocks such as Bharti Airtel, Vedanta and Tata Motors restricted the markets to go up. On the sectoral front, textile companies shares were trading lower despite India Ratings and Research (Ind-Ra) in its latest report said that the margins of cotton textiles are expected to improve in the coming period. It expects cotton prices to soften till March 2020 due to better yield leading to higher productivity of cotton in the current season. It highlighted that cotton prices had dropped in November 2019 however, December 2019 marked the beginning of an upward movement in prices by 2-3 percent year-on-year. Steel sector stocks remained in limelight as India's crude steel output increased marginally by 1.8 percent to 111.2 million tonnes (MT) in 2019, according to World Steel Association. The country's crude steel production was at 109.3 MT in 2018.

On the global front, European markets were trading higher despite continued fears about the outbreak of the deadly coronavirus in China. Back home, in scrip specific development, Bajaj Finance surged on the bourses and Kkalpana Industries shined on getting nod to incorporate WOS company.

The BSE Sensex is currently trading at 41045.15, down by 109.97 points or 0.27% after trading in a range of 41033.71 and 41333.25. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.26%, while Small cap index was down by 0.03%.

The few gaining sectoral indices on the BSE were Oil & Gas up by 0.22%, Bankex up by 0.19%, IT up by 0.09% and Healthcare was up by 0.06%, while Telecom down by 4.35%, Metal down by 2.53%, Energy down by 1.54%, Basic Materials down by 1.06% and Auto was down by 1.03% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Industries up by 1.80%, HDFC up by 1.77%, Bajaj Finance up by 1.47%, HDFC Bank up by 0.88% and Kotak Mahindra Bank up by 0.85%. On the flip side, Bharti Airtel down by 4.75%, Tata Steel down by 3.06%, Reliance Industries down by 2.16%, Maruti Suzuki down by 1.40% and ITC down by 1.39% were the top losers.

Meanwhile, with an aim to boost economic growth to double digits, Commerce and Industry Minister Piyush Goyal has asked the traders to promote swadeshi by selling and consuming local products. He exhorted domestic traders to pay heed to the call given by Prime Minister Narendra Modi to promote swadeshi products.

He said ‘If traders start using swadeshi (indigenous) goods, sell swadeshi products and promote those items, the economic growth will boom...no one can stop us from growing at 7, 8, and 9 per cent and double digits’. He also asked the Confederation of All India Traders (CAIT) to prepare a data base of a number of shops and people employed in those establishments in the country as that data will help the government implement demands made by the traders community effectively.

Goyal said data is essential for the government to prepare schemes and programmes for welfare of people but regretted that some people are opposing National Population Register. For exports, he said the ministry is working on a scheme to enhance credit for exporters. He also emphasised on using quality and standard products. He said the US has over 800 SPS (sanitary and phytosanitary) and TBT (technical barriers to trade) protocols, but India has less than 500.

The CNX Nifty is currently trading at 12061.70, down by 57.30 points or 0.47% after trading in a range of 12060.90 and 12163.55. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.16%, HDFC up by 1.68%, Bajaj Finance up by 1.54%, Sun Pharma Industries up by 1.43% and Bajaj Finserv up by 0.87%. On the flip side, Bharti Airtel down by 4.88%, Vedanta down by 4.17%, Tata Motors down by 3.68%, Tata Steel down by 3.41% and JSW Steel down by 3.37% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 16.42 points or 0.22% to 7,428.47, France’s CAC increased 23.69 points or 0.4% to 5,886.71 and Germany’s DAX was up by 28.36 points or 0.21% to 13,233.13.