Benchmarks trade flat in morning session

Fluctuating between gains and losses, Indian equity benchmarks were now trading flat in the morning deals, on the back of weak global cues amid ongoing coronavirus spread. Trading sentiments remained in lackluster mood as ratings agency Crisil has sharply lowered its forecast for India's gross domestic product (GDP) growth for the current fiscal 2020-21 (FY21) to (-) 9 percent as against its earlier estimate of (-) 5 percent projected in May, as the coronavirus infections are yet to peak and the government is not providing adequate direct fiscal support. Some concern also came with rating agency ICRA’s report that asset reconstruction companies (ARCs) are facing slowdown in recoveries from bad loans procured from banks due to failed auctions, absence of bidders and delay in payments amid COVID-19 pandemic. However, traders found some comfort as India and China have agreed on a five-point plan for resolving the prolonged border face-off in eastern Ladakh that included abiding by all existing agreements and protocol on management of the frontier, maintaining peace and tranquility and avoiding any action that could escalate matters.

On the global front, Asian markets were trading mostly in red in response to declines in technology stocks that began last week and growing concerns about another round of negotiations on the UK's departure from the European Union. Back home, on the sectoral front, stocks related to agriculture sector remained in limelight as National Bank for Agriculture and Rural Development (NABARD) said it aims to disburse Rs 1.20 lakh crore crop loan to farmers for meeting production expenses this fiscal. It annually disbursed Rs 90,000 crore crop loan at a concessional rate. 

The BSE Sensex is currently trading at 38830.49, down by 9.83 points or 0.03% after trading in a range of 38738.22 and 38978.52. There were 11 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.45%.

The top gaining sectoral indices on the BSE were Realty up by 2.80%, Consumer Durables up by 1.19%, FMCG up by 0.42%, Healthcare up by 0.35% and Consumer Discretionary up by 0.31%, while Metal down by 0.25%, Bankex down by 0.22%, PSU down by 0.16%, Industrials down by 0.15% and Oil & Gas down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Co up by 1.56%, TCS up by 0.99%, Hindustan Unilever up by 0.94%, Tech Mahindra up by 0.52% and Kotak Mahindra Bank up by 0.39%. On the flip side, Indusind Bank down by 1.54%, Power Grid down by 1.04%, Asian Paints down by 0.87%, Axis Bank down by 0.78% and HCL Technologies down by 0.73% were the top losers.

Meanwhile, indicating that the India-US limited trade deal may be signed after elections there, Commerce and Industry Minister Piyush Goyal said India has given America a very good, very balanced offer for the agreement. He said India is ready to sign the deal tomorrow, but he has left it to the US to decide on the timing.

He mentioned ‘we have almost finalised everything but because of coronavirus everything moved from work-from-home in the US. While India did everything as usual in terms of government functioning, I think the US was not really as much focused as on government functioning and on settling all the balance issues of the trade deal. So probably, we will have to wait for after the elections (in the US) before we can sign that deal. But I have left it to the US. I am ready to sign tomorrow. We have given them a very good, very balanced offer.’

He assured that India will gain significantly from the trade agreement, and the US will also get its corresponding share of benefits. He also assured that India will always protect its agriculture, dairy, MSMEs and domestic local industries and 'do a balanced (trade) deal.

The CNX Nifty is currently trading at 11453.75, up by 4.50 points or 0.04% after trading in a range of 11423.90 and 11493.50. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.03%, Titan Co up by 1.87%, Britannia Inds up by 1.69%, TCS up by 1.18% and HDFC Life Insurance up by 1.10%. On the flip side, Adani Ports &SEZ down by 1.62%, Indusind Bank down by 1.60%, Eicher Motors down by 1.32%, Indian Oil Corporation down by 0.84% and Coal India down by 0.83% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 66.94 points or 0.53% to 12,624.81, Straits Times trembled 14.96 points or 0.6% to 2,477.13, KOSPI fell 14.01 points or 0.58% to 2,382.47 and Shanghai Composite declined 6.81 points or 0.21% to 3,228.01.

On the flip side, Jakarta Composite soared 62.97 points or 1.29% to 4,954.43, Hang Seng increased 102.79 points or 0.42% to 24,416.33 and Nikkei 225 surged 128.76 points or 0.55% to 23,364.23.