Indices remain under pressure in late morning deals

Domestic equity indices remained under pressure and were trading lower with cut of around 0.40% in late morning deals owing to selling in Bajaj Finance, Bajaj Finserv Tata MotorsPassenger, Tata Steel and Power Grid companies’ stocks. Meanwhile, the broader markets were also trading in red; the BSE mid-cap index declined by 0.53 per cent and the small-cap index was down 0.45 per cent. Volatility remained elevated ahead of the Nifty 50’s weekly derivatives expiry. Traders ignored report that US President Donald Trump hinted towards coming closer to a trade deal with India. He also said that at some point, the US would bring down the tariffs on India. On the BSE sectoral front, traders were seen piling up positions in Telecom, TECK, Capital Goods, IT and Industrials, while selling was witnessed in Realty, Healthcare, Consumer Durables, Metal and Utilities.

On the global front, Asian markets were trading mostly in red, reversing earlier gains, on profit bookings. Back home, in the stock specific development, Britannia Industries plunged after its long-time managing director Varun Berry resigned from his position.

The BSE Sensex is currently trading at 83206.24, down by 329.11 points or 0.39% after trading in a range of 83124.03 and 83726.51. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.53%, while Small cap index down by 0.45%.

The top gaining sectoral indices on the BSE were Telecom up by 0.77%, TECK up by 0.44%, Capital Goods up by 0.38%, IT up by 0.21% and Industrials up by 0.02%, while Realty down by 0.96%, Healthcare down by 0.68%, Consumer Durables down by 0.64%, Metal down by 0.60% and Utilities down by 0.53% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 1.37%, Trent up by 1.18%, Bharti Airtel up by 1.06%, Mahindra & Mahindra up by 0.73% and HCL Technologies up by 0.58%. On the flip side, Bajaj Finance down by 7.96%, Bajaj Finserv down by 7.57%, Tata MotorsPassenger down by 1.80%, Tata Steel down by 0.83% and Power Grid down by 0.78% were the top losers.

Meanwhile, with an aim to ensure whether the that the regulatory framework takes into account evolution of technology and changes in the telecommunications sector, the Telecom regulator TRAI is reviewing all nine existing interconnection regulations. Further, it has sought stakeholder views on multiple aspects, including the interconnect framework for satellite-based telecommunications networks with other telecom networks. The regulatory aspects pertaining to various charges presently applicable during interconnection between service providers such as interconnection charges, interconnection usage charges (origination charges, transit charges, carriage charges, transit carriage charges, termination charges, and international termination charges) and Reference Interconnect Offer (RIO) framework are also being examined through the consultation paper.

TRAI noted that its review focuses on the examination of IP-based interconnection which becomes more pertinent as accelerating 4G/5G rollout requires it for better service quality, levels of interconnection which are currently at LSA (Licensed service area) levels for Mobile Network interconnections and at District/Tehsil levels for fixed-line Telephone Network interconnections. It has asked the stakeholders whether the interconnection frameworks for MSS (Mobile Satellite Service) and FSS (Fixed-Satellite Service) satellite-based telecommunications networks should be distinct. It also asked for specific regulatory models from other countries that have successfully addressed interconnection related issues and challenges which can be adapted in the Indian telecom sector.

It has sought stakeholder’s response on whether existing framework for interconnection process and timelines, should be reviewed or should continue; as well as on the need to revise the existing process of disconnection of points of interconnect (PoI). Further, it has asked for stakeholders’ views on whether there a requirement for furnishing bank guarantee by one telecom company to other, to safeguard the interest of operators arising due to financial obligations of interconnection. The existing SMS termination charges are also up for review, and TRAI has asked if there is a need to prescribe SMS carriage charges when an NLDO carries SMS between a service area. Moreover, the regulator asked if there is a need to address the issue of telemarketing and robocalls within the interconnection framework.

The CNX Nifty is currently trading at 25472.55, down by 101.80 points or 0.40% after trading in a range of 25449.25 and 25637.60. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Interglobe Aviation up by 1.41%, Bharat Electronics up by 1.34%, Trent up by 1.12%, Bharti Airtel up by 1.06% and Mahindra & Mahindra up by 0.79%. On the flip side, Bajaj Finance down by 7.92%, Bajaj Finserv down by 7.71%, Tata MotorsPassenger down by 1.78%, ONGC down by 1.53% and Eicher Motors down by 1.46% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 227.76 points or 0.45% to 50,684.00, Taiwan Weighted lost 64.46 points or 0.23% to 27,805.05, Jakarta Composite plunged 28.09 points or 0.34% to 8,363.15, Shanghai Composite weakened 20.5 points or 0.51% to 3,998.10 and Hang Seng declined 63.06 points or 0.24% to 26,586.00. However, Straits Times rose 38.55 points or 0.86% to 4,526.68 and KOSPI increased 18.89 points or 0.46% to 4,092.13.