Benchmarks trade slightly lower in late afternoon session

Indian equity benchmarks were trading marginally lower in late afternoon session. Investors maintained cautious approach after Crisil in its latest report 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. Trade took note of report that the employment growth rate declined to 3.5 percent in FY20 as compared to 3.8 percent in the previous fiscal year. On the global front, Asian markets are trading mostly in green despite weak cues from US stock market overnight and heightening geo political tensions. European markets were trading mostly in red as doubts about extra monetary stimulus and overnight falls in U.S. big tech shares kept investors on edge.

The BSE Sensex is currently trading at 38804.83, down by 35.49 points or 0.09% after trading in a range of 38711.80 and 38978.52. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.22%, while Small cap index was up by 0.43%.

The top gaining sectoral indices on the BSE were IT up by 1.50%, Realty up by 1.20%, TECK up by 1.09%, Consumer Durables up by 0.80% and FMCG was up by 0.37%, while Telecom down by 0.73%, Bankex down by 0.59%, PSU down by 0.48%, Utilities down by 0.43% and Oil & Gas was down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.25%, TCS up by 1.81%, Titan Company up by 1.18%, Bajaj Finance up by 1.08% and HCL Tech up by 1.01%. On the flip side, Indusind Bank down by 2.20%, Power Grid down by 1.58%, Asian Paints down by 1.57%, Axis Bank down by 1.22% and HDFC Bank down by 1.19% were the top losers.

Meanwhile, with an aim to deregulate and make it easier to start a business, Union Minister of Commerce and Industry Piyush Goyal has said that the government is working with states and local bodies. He also said that India's own ease of doing business ranking has improved significantly in the five years.

Talking about India’s mammoth potential, the Minister said that the real unique selling point of India should be around high quality, good service and good pricing. Further he explained the concept of AatmaNirbharBharat, saying that it is not about closing India's doors to international trade and engagement. In fact, it is about opening it wider looking for greater engagement in global trade. Now India has to engage with global economies from a position of strength with highly cost-competitive products of high quality.

On India being a huge and much-sought after market, the Minister said it's a market that businesses around the world want to engage with. The businesses will not only get a large Indian market but can also leverage this market to get economies of scale.

The CNX Nifty is currently trading at 11445.75, down by 3.50 points or 0.03% after trading in a range of 11419.90 and 11493.50. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Wipro up by 4.34%, Tech Mahindra up by 2.27%, Bharti Infratel up by 2.00%, TCS up by 1.88% and Grasim Industries up by 1.63%. On the flip side, Zee Entertainment down by 2.51%, Indusind Bank down by 2.22%, Power Grid down by 1.58%, Asian Paints down by 1.34% and Coal India down by 1.22% were the top losers.

Asian markets are trading mostly in green; Hang Seng increased 189.77 points or 0.78% to 24,503.31, Nikkei 225 surged 171.02 points or 0.74% to 23,406.49, Jakarta Composite soared 125.25 points or 2.56% to 5,016.71, Shanghai Composite gained 25.53 points or 0.79% to 3,260.35, KOSPI rose 0.21 points or 0.01% to 2,396.69. On the other hand, Straits Times trembled 2.93 points or 0.12% to 2,489.16 and Taiwan Weighted was down by 15.80 points or 0.12% to 12,675.95.

European markets were trading mostly in red, France’s CAC decreased 2.10 points or 0.04% to 5,021.83, Germany’s DAX decreased 24.77 points or 0.19% to 13,184.12. On the other hand, UK’s FTSE 100 increased 15.45 points or 0.26% to 6,018.77.