Benchmarks trim losses in afternoon deals

Indian equity benchmarks trimmed some of their losses in afternoon session, but continue to trade below the neutral lines, with Sensex and Nifty trading under 38,700 and 11,450 levels, respectively. Traders took some solace with AEPC Chairman A Sakthivel’s statement that apparel exports from India will expand by 40 percent in the current financial year (FY21) with major focus on new medical textiles. He said this will take the total apparel exports up from $15.4 billion last fiscal to about $22 billion in 2020-21. However, sentiments remained gloomy as corporate revenues declined by 31 per cent in the June quarter, but profit margins decreased by a lesser degree to 3.6 per cent in the April-June period. Domestic rating agency ICRA analysed financial results of 489 companies to arrive at the conclusion. Weak broader indices along with heavy sell off at power, utilities and realty counters, dragged the markets lower.

On the global front; Asian markets were trading under pressure due to profit booking in technological shares which was overvalued over past several weeks. Back on street; in scrip specific developments, Adani Gas jumped after ICRA upgrades its rating with stable outlook, while Chemcrux Enterprises touched lower limit after shutting down production activities at Ankleshwar Plant.

The BSE Sensex is currently trading at 38668.18, down by 322.76 points or 0.83% after trading in a range of 38299.12 and 38668.54. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.54%, while Small cap index was down by 0.42%.

The only gaining sectoral indices on the BSE were Auto up by 0.78% and Consumer Discretionary was up by 0.15%, while Power down by 1.75%, Utilities down by 1.14%, Realty down by 1.08%, Metal down by 1.06% and Basic Materials was down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.18%, Bajaj Finserv up by 0.74%, TCS up by 0.52%, Bajaj Finance up by 0.51% and Indusind Bank was up by 0.28%. On the flip side, ITC down by 2.14%, NTPC down by 1.94%, ICICI Bank down by 1.79%, Tata Steel down by 1.78% and Power Grid was down by 1.57% were the top losers.

Meanwhile, the Ministry of Road Transport and Highways said the government has proposed to make FASTag mandatory for vehicles sold before December 1, 2017, in order to promote digital and IT-based payment of toll fees. It said a notification has been issued in this regard and post amendment to rules, FASTag will be mandatory for old vehicles from January 1, 2021.

A draft notification has been issued to seek comments and suggestions from the stakeholders on making FASTag mandatory for old vehicles sold before December 1, 2017. The amended provision in CMVR (Central Motor Vehicles Rules), 1989 is proposed to be put in force with effect from January 1, 2021. It is also proposed to make having a valid FASTag mandatory while getting a new third party insurance through an amendment in certificate of insurance, wherein the details of FASTag ID shall be captured. This is proposed to be put in force with effect from April 1, 2021.

As per CMVR, 1989, FASTag had been made mandatory since 2017 for registration of new four wheeled vehicles and is to be supplied by the vehicle manufacturer or their dealers. It had further been mandated that the renewal of fitness certificate will be done only after the fitment of FASTag for the transport vehicles. For national permit vehicles, the fitment of FASTag has been mandated since October 1, 2019.

The CNX Nifty is currently trading at 11434.35, down by 93.10 points or 0.81% after trading in a range of 11332.85 and 11439.85. There were 11 stocks advancing against 38 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Bharti Infratel up by 3.20%, Maruti Suzuki up by 3.03%, Bajaj Finserv up by 0.86%, Tata Motors up by 0.56% and Bajaj Finance was up by 0.52%. On the flip side, JSW Steel down by 2.23%, ITC down by 2.11%, Wipro down by 2.10%, NTPC down by 2.10% and UPL was down by 1.89% were the top losers.

All Asian markets were trading lower; Hang Seng decreased 317.68 points or 1.27% to 24,689.92, Jakarta Composite lost 61.49 points or 1.16% to 5,219.32, Straits Times trembled 30.59 points or 1.21% to 2,501.20, Shanghai Composite declined 29.61 points or 0.87% to 3,355.37, Taiwan Weighted dropped 120.02 points or 0.94% to 12,637.95, KOSPI fell 27.65 points or 1.15% to 2,368.25 and Nikkei 225 was down by 260.10 points or 1.11% to 23,205.43.