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Sensex, Nifty continue to trade in red terrain
Jan-18-2019

Indian bourses continued to trade in red terrain in afternoon deals, tracking heavy selling on Telecom and Healthcare counters amid weakening rupee. Investors failed to draw any sense of relief with India Ratings and Research’s report that the country’s economy is likely to grow a tad higher at 7.5 per cent in 2019-20 on account of steady improvement in major sectors -- industry and services. It further said Gross Domestic Product (GDP) growth would have been even better but for the global headwinds caused by an abrupt rise in crude oil prices and strengthening of the US dollar, among other factors. Healthy December quarter numbers posted by Reliance Industries and Hindustan Unilever too failed to enthuse investors. Traders took a note of Union minister for transport Nitin Gadkari’s statement that there is need to move towards alternative fuels such as methanol, ethanol, bio- fuels and electric as it will help to reduce reliance on fossil fuels costs less. On the sectoral front, textile sector remained in focus with Confederation of Indian Textile Industry (CITI) estimating that domestic technical textile industry will reach market potential of Rs 2,00,823 crore by 2020-21 from Rs 1,16,217 crore in FY18 with a CAGR of 20%. It pointed out that the demand for this sector is rising due to many factors including rapid urbanisation, advances in medical technology, expansion in construction sectors, awareness on safety and environmentalism and increased spending on healthcare.

On the global front, Asian market were trading mostly in green, as investors cheered by a report that the US was considering lifting tariffs on China as officials look to hammer out a trade deal. Optimism that the world's top two economies are on course to reach a deal ending their long-running trade row has helped boost equities across the world this year. Back home, the BSE Sensex is currently trading at 36287.02, down by 87.06 points or 0.24% after trading in a range of 36218.33 and 36469.98. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.44%, while Small cap index was down by 0.50%.

The only gaining sectoral index on the BSE was Energy up by 0.96%, while Telecom down by 3.44%, Healthcare down by 1.80%, Realty down by 0.63%, TECK down by 0.62% and Industrials down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.70%, Kotak Mahindra Bank up by 1.22%, ONGC up by 1.17%, Vedanta up by 0.58% and Asian Paints up by 0.49%. On the flip side, Sun Pharma down by 9.84%, Bharti Airtel down by 5.82%, Axis Bank down by 1.63%, Tata Motors - DVR down by 1.17% and Tata Motors down by 0.92% were the top losers.

Meanwhile, Union minister for transport Nitin Gadkari has said that there is need to move towards alternative fuels such as methanol, ethanol, bio- fuels and electric as it will help to reduce reliance on fossil fuels costs less. 

Gadkari has pointed out that India’s crude oil import bill is of Rs 7 lakh crore and this cost is creating big economic problems for the country and at the same time, the use of fossil fuels are creating pollution. He also said that as there is a lot of agriculture raw material waste, there is a need to convert it into energy through waste and move towards the alternative fuels. He said “the prime minister has already declared that by 2022, we will have to reduce the import bill of crude oil by 10 percent.

The minister further said that if bio mass projects are set up in the rural areas, it will create a lot of employment and people will not have to move towards the cities. It also noted that since all these raw material needed to make the bio fuels are available in the rural areas, the social economic scenario will also change. He stated that excepting some states, the public transport is facing losses. He added “so we need to convert the public transport on to electric or to ethanol.”

The CNX Nifty is currently trading at 10880.95, down by 24.25 points or 0.22% after trading in a range of 10852.20 and 10928.20. There were 19 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.27%, Reliance Industries up by 1.64%, Kotak Mahindra Bank up by 1.36%, ONGC up by 1.34% and HCL Tech. up by 0.76%. On the flip side, Sun Pharma down by 9.65%, Bharti Airtel down by 5.72%, GAIL India down by 2.44%, HPCL down by 1.68% and Axis Bank down by 1.60% were the top losers.

Asian market were trading in mostly in green; Nikkei 225 surged 263.80 points or 1.29% to 20,666.07, Hang Seng increased 351.68 points or 1.31% to 27,107.31, KOSPI rose 17.22 points or 0.82% to 2,124.28, Taiwan Weighted strengthened 46.91 points or 0.48% to 9,836.06, Shanghai Composite gained 32.70 points or 1.28% to 2,592.34 and Straits Times advanced 6.17 points or 0.19% to 3,220.61.

On the flip side, Jakarta Composite was down by 6.99 points or 0.11% to 6,416.79.
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