Indian equity benchmarks were trading in red terrain during late morning deals, on the back of weak cues from other Asian markets. Heavy selling at Utilities and Oil & Gas counters, was impacting trade on the Dalal Street. Traders over looked a private report stating that India's Global Real Estate Transparency Index ranking has improved by one notch to 34 on the back of regulatory reforms, better market data and green initiatives. India was ranked 35th in the index during 2018 bi-annual survey, while the country was at 36th position in 2016 and 39th in 2014. The country's real estate market is currently placed in the 'semi-transparent' zone.
On the global front, Asian markets were trading mostly in red, even after Indonesia's households were less pessimistic in June, thanks to stronger expectations on the future economic situation, as the restrictions imposed to prevent the spread of the coronavirus, or Covid-19, were eased. The survey results from the Bank Indonesia showed that the consumer confidence index rose to 83.8 in June from 77.8 in May.
The BSE Sensex is currently trading at 36368.71, down by 118.57 points or 0.32% after trading in a range of 36271.09 and 36660.35. There were 11 stocks advancing against 19 stocks declining on the index.
The broader indices were trading mixed; the BSE Mid cap index lost by 0.17%, while Small cap index was up by 0.08%.
The few gaining sectoral indices on the BSE were IT up by 0.73%, TECK up by 0.38% and Healthcare up by 0.13%, while Utilities down by 2.14%, Oil & Gas down by 2.09%, PSU down by 1.61%, Energy down by 1.58% and Power down by 1.33% were the top losing indices on BSE.
The top gainers on the Sensex were Bajaj Finance up by 3.47%, Infosys up by 2.17%, Indusind Bank up by 1.96%, Bajaj Finserv up by 1.73% and Asian Paints up by 1.62%. On the flip side, Power Grid down by 2.81%, Mahindra & Mahindra down by 2.65%, ITC down by 2.45%, Ultratech Cement down by 2.09% and ONGC down by 2.03% were the top losers.
Meanwhile, the Finance Ministry’s Economic Affairs Department in its latest Macroeconomic Report for June said that early green shoots of economic revival have emerged in May and June with real activity indicators like electricity and fuel consumption, inter and intra-state movement of goods, retail financial transactions witnessing pick up. It also said economy will grow further on the back of a conducive policy environment, nudging the coronavirus-hit economy to move on the path of recovery and growth.
As per the report, India’s forex reserves at $505.6 billion as on June 19 continue to provide a crucial cushion to external shocks on the back of higher FDI, portfolio flows and low oil prices. It noted that this recovery is also evident in the Goods & Services Tax (GST) collections for June 2020 that clocked Rs 90,917 crore at gross levels, 46% higher than May and 181% over April. It said policy environment was made conducive beginning March 2020 when the RBI and government were able to correctly anticipate the economic downturn following the outbreak of the pandemic.
The report said the stimulus package, which is a set of reforms providing continuity to the initiative that commenced in 2014, has accelerated the reforms at a time when the pandemic has constrained the fiscal envelope of the government and dampened the inclination of the people to spend, in view of economic uncertainty. The commitment of the government towards both structural reforms and supportive social welfare measures will help build on these ‘green shoots’.
It said ‘economic growth of pre-COVID times, as and when restored through fuller unlocking of the economy, will heavily lean on the reforms undertaken today to enhance its potential tomorrow’. It added that India's economic growth dipped to 4.2% in 2019-20 on account of lower growth in January-March quarter, mainly attributable to the global spread of COVID-19 since January 2020 and subsequent lockdown measures across countries including India.
The CNX Nifty is currently trading at 10707.60, down by 56.05 points or 0.52% after trading in a range of 10689.70 and 10803.60. There were 15 stocks advancing against 35 stocks declining on the index.
The top gainers on Nifty were Bajaj Finance up by 3.19%, Infosys up by 2.06%, Indusind Bank up by 1.80%, ICICI Bank up by 1.63% and Asian Paints up by 1.55%. On the flip side, Adani Ports & SEZ down by 3.88%, Mahindra & Mahindra down by 2.96%, Power Grid down by 2.81%, Grasim Industries down by 2.75% and Bharti Infratel down by 2.65% were the top losers.
Asian markets were trading mostly in red; Nikkei 225 slipped 137.29 points or 0.6% to 22,577.15, Taiwan Weighted dropped 28.36 points or 0.23% to 12,088.34, KOSPI fell 15.10 points or 0.69% to 2,172.83 and Straits Times trembled 2.72 points or 0.1% to 2,686.89. On the flip side, Jakarta Composite soared 2.89 points or 0.06% to 4,991.76, Hang Seng increased 32.39 points or 0.12% to 26,371.55 and Shanghai Composite gained 43.91 points or 1.32% to 3,376.79.
