HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Bourses manage to keep their heads above water in afternoon deals
May-22-2019

Indian equity benchmarks managed to keep their heads above water in afternoon session, on the back of buying by funds and retail investors. Traders were taking support from United Nations (UN) in its World Economic Situation and Prospects (WESP) 2019 Mid-year Update report stating that the India's economy is projected to grow at 7.1% in current financial year (FY20) on the back of strong domestic consumption and investment. However, the markets trimmed most of their gains, as anxiety spread among the traders ahead of final results of the 2019 Lok Sabha elections to be declared on May 23. Meanwhile, a specialised cadre will be created within the Reserve Bank for supervision and regulation of financial institutions, including banks and NBFCs. On the sectoral front, steel sector stocks were trading in red with Rating agency India Ratings (Ind-Ra) in its latest report cautioning that steel production in India may be significantly affected if the auction of the mines is delayed. Consequently, it said the credit profile of merchant miners and thus non-integrated steel players could come under stress.

On the global front, Asian markets were trading mostly in green, after a rebound in technology stocks helped power an overnight rally on Wall Street. Back home, the BSE Sensex is currently trading at 39077.33, up by 107.53 points or 0.28% after trading in a range of 38903.87 and 39196.77. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.58%, while Small cap index was up by 0.06%.

The gaining sectoral indices on the BSE were Energy up by 0.87%, Capital Goods up by 0.82%, Realty up by 0.71%, Oil & Gas up by 0.65% and Industrials up by 0.48%, while FMCG down by 1.32%, Consumer Durables down by 0.69%, IT down by 0.44%, TECK down by 0.38% and Utilities down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.53%, Hero MotoCorp up by 1.86%, Tata Motors - DVR up by 1.56%, ICICI Bank up by 1.54% and Bajaj Auto up by 1.25%. On the flip side, Indusind Bank down by 2.61%, ITC down by 2.51%, Yes Bank down by 1.91%, Hindustan Unilever down by 1.40% and TCS down by 1.28% were the top losers.

Meanwhile, rating agency India Ratings (Ind-Ra) in its latest report has cautioned that steel production in India may be significantly affected if the auction of the mines is delayed. Consequently, it said the credit profile of merchant miners and thus non-integrated steel players could come under stress. It noted that the license of about 288 merchant mines will expire by March 2020, out of which 59 mines are under operations. It also highlighted that majority of these 59 mines are iron ore mines situated in Odisha and Karnataka with about 85 million tonnes of approved annual capacity.

Rating agency estimates that around 60 million tonnes of the actual production of iron ore from these mines could be disrupted. Considering that the auction process on an average takes three to six months to complete, it said a delay in initiating them until the latter half of 2019 due to the Lok Sabha elections in the country could affect the timely auction of mining lease.

According to the report, auction to operation process also gets elongated typically due to delays in obtaining environmental, wildlife and forest clearances. It said that the G2 resource prospection is a pre-requisite for auction which some of these mines may not have at the moment. The report assumes importance as India is aiming to reach a crude steel production capacity of 300 million tonnes by 2030-2031.

The CNX Nifty is currently trading at 11730.15, up by 21.05 points or 0.18% after trading in a range of 11682.40 and 11760.65. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.60%, BPCL up by 2.52%, Hero MotoCorp up by 1.93%, ICICI Bank up by 1.67% and UPL up by 1.44%. On the flip side, ITC down by 2.75%, Indusind Bank down by 2.68%, Tech Mahindra down by 2.53%, Indiabulls Housing Finance down by 2.25% and Yes Bank down by 1.99% were the top losers.

Asian markets were trading mostly in green; KOSPI rose 3.61 points or 0.18% to 2,064.86, Straits Times advanced 1.71 points or 0.05% to 3,184.97, Nikkei 225 surged 10.92 points or 0.05% to 21,283.37 and Hang Seng increased 42.38 points or 0.15% to 27,699.62.

On the flip side, Taiwan Weighted dropped 7.28 points or 0.07% to 10,457.22, Jakarta Composite lost 12.87 points or 0.22% to 5,938.50 and Shanghai Composite declined 18.67 points or 0.64% to 2,887.30.
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 22 , 2024
FPIs withdraw over Rs 5,200 crore in April so
April 23 , 2024
Small, midcap funds remain mutual fund investo
April 24 , 2024
Volatility index India Vix records steepest sl
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.