Markets cut some losses in late morning session

Indian equity benchmarks remained lower in late morning session but managed to cut some of their losses, with both Sensex and Nifty trading in red. Losses got trimmed, as Niti Aayog Vice Chairman Rajiv Kumar said the fresh set of stimulus measures announced by the finance minister will not only accelerate the revival of the economy but also enable a bolstering of employment opportunities. Finance Minister Nirmala Sitharaman on Monday announced Rs 1.5 lakh crore of additional credit for small and medium businesses, more funds for the healthcare sector, loans to tourism agencies and guides, and waiver of visa fee for foreign tourists as part of a fresh package to support the pandemic-hit economy.

On the global front, Asian markets were trading mostly in red, after Hong Kong's merchandise exports grew at a softer pace in May. The data from the Census and Statistics Department showed that exports rose 24.0 percent year-on-year in May, after a 24.4 percent increase in April. Imports gained 26.5 percent annually in May, following a 25.2 percent increase in the previous month.

The BSE Sensex is currently trading at 52631.55, down by 104.04 points or 0.20% after trading in a range of 52533.24 and 52816.42. There were 14 stocks advancing against 15 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.04%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.74%, FMCG up by 0.30%, Energy up by 0.27%, Utilities up by 0.18% and Industrials up by 0.13%, while Metal down by 0.84%, Bankex down by 0.73%, Auto down by 0.59%, Oil & Gas down by 0.52% and Power down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.20%, Power Grid up by 0.78%, Reliance Industries up by 0.76%, Nestle up by 0.67% and Titan Company up by 0.65%. On the flip side, Maruti Suzuki down by 1.37%, Bajaj Auto down by 1.33%, ICICI Bank down by 1.25%, Kotak Mahindra Bank down by 1.21% and Mahindra & Mahindra down by 1.15% were the top losers.

Meanwhile, Federation of Indian Exports Organisation (FIEO) has stated that the 'little ambitious' exports target of $400 billion for the current fiscal is achievable but it requires aggressive marketing strategy and venturing into new markets. FIEO President A Sakthivel also said that free trade agreements with countries including UK, Europe, Australia, and the US would help further push the country's exports.

He said that push for marketing may come from these agreements and such pacts will also help in attracting foreign investments particularly those looking at both the Indian markets and exports. He added ‘One of the reasons for the success of Vietnam, in attracting investment and relocating units, is its effective FTAs (free trade agreement) with the rest of the world. It is extremely encouraging that the government is moving simultaneously with many trade partners in this direction’.

He urged both the Industry and the government to increase their marketing budget. Sakthivel suggested the government to look into enhancing Market Access Initiative funds from the current level of Rs 200 crore and formulation of a scheme for marketing aimed to take exports to $1 trillion in the next five years may be rolled in with a minimum corpus of Rs 1,000 crore annually. FIEO also plans to create direct communication with all Missions and utilise its services to sell Indian products and services in the global markets. Further, he said ‘exports should be a national priority’ and all the stakeholders should work in tandem to achieve it.

The CNX Nifty is currently trading at 15772.45, down by 42.25 points or 0.27% after trading in a range of 15747.35 and 15835.90. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 1.15%, Cipla up by 0.90%, Divi's Lab up by 0.76%, Power Grid up by 0.71% and Nestle up by 0.71%. On the flip side, Hindalco down by 1.83%, ONGC down by 1.76%, Maruti Suzuki down by 1.53%, Bajaj Auto down by 1.36% and ICICI Bank down by 1.31% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 263.13 points or 0.91% to 28,784.89, Hang Seng decreased 225.28 points or 0.77% to 29,043.02, Shanghai Composite declined 34.10 points or 0.95% to 3,572.27, Straits Times trembled 30.45 points or 0.97% to 3,096.43 and KOSPI fell 22.31 points or 0.68% to 3,279.58. On the flip side, Jakarta Composite soared 17.86 points or 0.3% to 5,957.33 and Taiwan Weighted strengthened 35.86 points or 0.2% to 17,626.83.