Lackluster trade continues on Dalal Street

Indian equity benchmarks continued their lackluster trade in afternoon session in anticipation of a mega rate hike by the U.S. Federal Reserve. Sentiments were fragile as retail inflation for farm and rural workers increased to 6.94 per cent and 7.26 per cent, respectively, in August mainly due to higher prices of certain food items. In July, retail inflation for farm and rural workers stood at 6.60 per cent and 6.82 per cent respectively. Depreciating rupee too added pressure on the markets. The partially convertible rupee was at 79.93, down 0.19 paise against its previous close of Rs 79.74 against US dollar. Stocks from Fast moving Consumer Goods counters were the only sector which showcased resilience, while stocks from Utilities, Power and PSU counters emerged as the laggards of the sector. The overall market breadth on BSE remained in the favour of declines which thumped advances in the ratio of 2219: 1126, while 147 shares remained unchanged. On the global front, most of the Asian markets were trading lower.

The BSE Sensex is currently trading at 59,318.71, down by 401.03 points or 0.67% after trading in a range of 59275.40 and 59799.04. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.73%, while Small cap index was down by 0.85%.

The only gaining sectoral indices on the BSE was FMCG was up by 0.66%, while Utilities down by 2.11%, Power down by 1.95%, PSU down by 1.18%, Bankex down by 1.18% and Realty was down by 1.12% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.90%, Tech Mahindra up by 0.61%, Reliance Industries up by 0.55%, ITC up by 0.36% and Nestle was up by 0.26%. On the flip side, Indusind Bank down by 2.11%, NTPC down by 1.16%, Power Grid Corp down by 1.12%, HDFC down by 1.02% and SBI was down by 0.85% were the top losers.

Meanwhile, Union Minister Mansukh Mandaviya has said that India's chemical and petrochemical industry can play a significant role in the country's economic growth. He said chemicals and petrochemicals sector can transform India into a global manufacturing hub.

Mandaviya stressed that India needs to create its model to lead the global market in chemicals and fertilizers. He asked the companies and the Advisory Forum to create a futuristic strategy that would be in sync with the global demands and the emerging requirements of aligned industries. He noted that India can rise to the challenge; what is needed is a strategy which is focussed on outcomes. He also asked the industry and academia to partner in R&D which addresses the domestic requirements in the sector.

On July 10, 2019, an Advisory Forum for the Chemicals & Petrochemical sector has been constituted to identify impediments affecting the growth of the chemical and petrochemical sector in the country and to facilitate industry growth through policy interventions. The role of the forum is to provide a platform to the industry associations for raising issues that may be resolved in coordination with other ministries. It also offers an opportunity to stakeholders to provide their inputs for framing policies and taking new initiatives for making the country 'Atmanirbhar' in the sector.

The CNX Nifty is currently trading at 17,676.95, down by 139.30 points or 0.78% after trading in a range of 17667.20 and 17838.70. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Britannia Inds up by 3.44%, Hindustan Unilever up by 1.91%, Apollo Hospital up by 1.27%, Reliance Industries up by 0.57% and Nestle was up by 0.40%. On the flip side, Adani Ports down by 4.25%, Shree Cement down by 3.63%, Indusind Bank down by 2.99%, ONGC down by 1.91% and NTPC was down by 1.22% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 227.93 points or 1.21% to 18,553.49, Jakarta Composite lost 42.46 points or 0.59% to 7,154.49, Nikkei 225 slipped 375.29 points or 1.36% to 27,313.13, Taiwan Weighted dropped 124.78 points or 0.86% to 14,424.52 and KOSPI was down by 20.64 points or 0.87% to 2,347.21. On the flip side, Straits Times advanced 0.53 points or 0.02% to 3,267.47 and Shanghai Composite was up by 5.15 points or 0.16% to 3,127.56.