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Local equities continue lackluster trade
Jan-18-2019

Local equity benchmarks continued their lackluster trade in morning session, with losses of around one third a percent, with Sensex and Nifty falling more than 100 and 40 points, respectively tracking heavy selling on Healthcare and banking counters. Weakness was also visible in the broader markets with the S&P BSE Mid-cap and the S&P BSE Small-cap indices losing around half a percent each. Traders remain cautions as rupee declined against the US dollar due to some buying in American currency by banks and importers amid an uptick in global crude oil prices. Investors ignored a report that India Inc urged the Reserve Bank of India (RBI) to cut interest rate and reserve ratio to prop up growth. Industry chambers suggested various measures to ease tight liquidity situation and reduce high cost of credit in the light of consistently falling inflation. Besides, India Ratings and Research (Ind-Ra) stated that the country's economy is likely to grow a tad higher at 7.5% in 2019-20 on account of steady improvement in major sectors, industry and services.

On the global front, Asian markets were trading in mostly in green, on hopes of US-China trade deal after the US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports. Back home, agriculture industries stocks were trading mostly in red; despite Agriculture Minister Radha Mohan Singh’s statement that major measures in the coming weeks to address farm distress across the country, a move that will come ahead of Lok Sabha elections. Meanwhile, rating agency ICRA stated that the domestic auto components industry is expected to grow at around 15% in the current financial year despite a slowdown in demand in the automotive sector.

The BSE Sensex is currently trading at 36264.81, down by 109.27 points or 0.30% after trading in a range of 36218.33 and 36469.98. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.42%, while Small cap index was down by 0.45%.

The few gaining sectoral indices on the BSE were Energy up by 0.64%, Power up by 0.10% and Metal was up by 0.10%, while Healthcare down by 2.07%, Telecom down by 1.19%, TECK down by 0.56%, Industrials down by 0.54% and Capital Goods was down by 0.53% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.15%, ONGC up by 1.07%, Kotak Mahindra Bank up by 0.72%, Vedanta up by 0.61% and Power Grid up by 0.59%. On the flip side, Sun Pharma down by 10.24%, Bharti Airtel down by 2.47%, Yes Bank down by 1.59%, ITC down by 0.88% and Bajaj Auto down by 0.87% were the top losers.

Meanwhile, with an aim to address various issues of rubber industry, Union minister for commerce and Industry and Civil Aviation Suresh Prabhu has said the government is developing a National Rubber Policy. The Minister highlighted the policy will address issues that will boost productivity. He also underlined that the rubber industry will continue to grow faster, create more employment opportunities, increase exports and add to the economic output of India.

Besides, stating that India will become a 5 trillion dollar economy in the next few years, Prabhu said it is expecting that the manufacturing sector will add 20% to this and the rubber industry can make a significant contribution to this.

Additionally, he said a multi-pronged strategy is being formulated to boost India's exports, adding that during the last 13-14 months, India's exports have grown at 10 per cent, despite the slowdown in the global economy. Meanwhile, he said the government is working towards entering into free trade agreements with Africa and Latin America, where the first priority is the benefit of Indian industry.

The CNX Nifty is currently trading at 10865.05, down by 40.15 points or 0.37% after trading in a range of 10852.20 and 10928.20. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were ONGC up by 1.31%, Reliance Industries up by 1.04%, Wipro up by 1.01%, Power Grid up by 0.70% and Kotak Mahindra Bank was up by 0.62%. On the flip side, Sun Pharma down by 10.39%, GAIL India down by 2.77%, Bharti Airtel down by 2.41%, Yes Bank down by 1.76% and Bajaj Finserv was down by 1.40% were the top losers.

Asian market were trading in mostly in green, Hang Seng increased 282.72 points or 1.06% to 27,038.35, Nikkei 225 surged 271.52 points or 1.33% to 20,673.79, Taiwan Weighted strengthened 31.66 points or 0.32% to 9,820.81, Shanghai Composite gained 20.12 points or 0.79% to 2,579.76, KOSPI rose 13.52 points or 0.64% to 2,120.58 and Straits Times advanced 8.29 points or 0.26% to 3,222.73. On the other side, Jakarta Composite was down by 6.99 points or 0.11% to 6,416.79.
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