Sensex, Nifty trade near neutral lines

Indian equity benchmarks were trading near their neutral lines in late morning session, on the back of negative cues from other Asian markets. Traders were worried, amid a private report stating that consumer confidence on financial preparedness for the future has dropped in the last two years with the onset of the coronavirus pandemic, even as the financial awareness and need for insurance has increased. Besides, the microfinance industry's gross loan portfolio (GLP) marginally declined by around 4 per cent to Rs 2,14,528 crore as of June 30 this year, against Rs 2,24,205 crore as of June 20, 2020, according to a report by Sa-Dhan. Sa-Dhan is an RBI recognised self-regulatory organisation for microfinance institutions.

On the global front, Asian markets were trading mostly in red, even after Japan's tertiary activity rose for the first time in three months in June. The data from the Ministry of Economy, Trade and Industry showed that the tertiary activity index rose 2.3 percent month-on-month in June, after a 2.9 percent decrease in May. Among the individual components, living and amusement-related services, retail trade, transport and postal activities, medical, health care and welfare, wholesale trade, electricity, gas, heat supply and water, business-related services, goods rental and leasing, information and communications increased in June.

The BSE Sensex is currently trading at 55597.54, up by 14.96 points or 0.03% after trading in a range of 55415.63 and 55688.50. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.33%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were IT up by 1.49%, TECK up by 1.17%, Healthcare up by 1.04%, FMCG up by 0.72% and Consumer Durables up by 0.36%, while Telecom down by 0.92%, Metal down by 0.84%, Realty down by 0.83%, Auto down by 0.78% and Bankex down by 0.78% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.47%, HCL Tech. up by 1.89%, Asian Paints up by 1.52%, Nestle up by 1.42% and Hindustan Unilever up by 1.39%. On the flip side, Indusind Bank down by 1.59%, Axis Bank down by 1.31%, Mahindra & Mahindra down by 1.28%, ICICI Bank down by 1.12% and HDFC Bank down by 0.94% were the top losers.

Meanwhile, Kabul falling into the hands of the Taliban, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said bilateral trade between Afghanistan and India will get impacted significantly in these uncertain times. He said domestic exporters should follow caution looking into the political development in Afghanistan, particularly with regard to payments, for which adequate credit insurance may be availed by them. He added ‘The trade will be impacted. It would reduce due to the growing uncertainty in Afghanistan’.

FIEO Vice-President Khalid Khan stated there would be a complete standstill in the trade for a certain time, as the situation is out of control in Afghanistan. He said ‘It is a landlocked country and the air route is the main medium of exports and that has been disrupted. Trade will resume only after the uncertainty will get down’. Former FIEO president and country’s leading exporter S K Saraf too said there will be a significant fall in the bilateral trade. He noted ‘We may not lose all because they need our products’. Afghanistan stares at an uncertain future as President Ashraf Ghani left the country just before Kabul fell into the hands of the Taliban on Sunday.

The bilateral trade stood at $1.4 billion in 2020-21 as against $1.52 billion in 2019-20. Exports from India were $826 million and imports were aggregated at $510 million in 2020-21. Afghan exports to India include dried raisin, walnut, almond, fig, pine nut, pistachios, dried apricot and fresh fruits such as apricot, cherry, watermelon, and medicinal herbs. India’s outbound shipments to that country include tea, coffee, pepper and cotton.

The CNX Nifty is currently trading at 16556.70, down by 6.35 points or 0.04% after trading in a range of 16516.60 and 16591.40. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.43%, Tata Consumer Products up by 2.74%, HCL Tech. up by 1.85%, Asian Paints up by 1.60% and Hindustan Unilever up by 1.47%. On the flip side, Coal India down by 1.87%, Indusind Bank down by 1.75%, JSW Steel down by 1.61%, Tata Motors down by 1.40% and Indian Oil Corp. down by 1.31% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 178.80 points or 0.68% to 26,002.66, Taiwan Weighted dropped 163.26 points or 0.97% to 16,695.51, KOSPI fell 23.40 points or 0.74% to 3,147.89, Straits Times trembled 20.00 points or 0.64% to 3,125.52 and Shanghai Composite declined 16.91 points or 0.48% to 3,500.43. On the flip side, Nikkei 225 surged 1.16 points or 0.01% to 27,524.35.