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Weak trade persists on D-street
Jul-19-2019

Weak trade continued on the Dalal Street in late afternoon session, with Sensex and Nifty falling over a percent, despite firm cues from European markets. The street remained worried, as sticking to his analysis that India's economic growth has been overestimated, Arvind Subramanian said he had raised doubts about the GDP numbers in 2015 when he was the chief economic adviser of the Modi government as he found inconsistency between projected growth and other macro indicators. Some concerns also came with the International Monetary Fund’s (IMF) report that India's current account (CA) balance deficit grew to $68 billion in 2018-19 from $49 billion the previous year, and it said the deficit was justified by development needs. Besides, India's overall international reserves, stood at $411.9 billion at the end of March this year, down from March last year by $12.5 billion.

On the global front, European markets were trading in green, after the Euro area current account surplus increased in May. The data from the European Central Bank showed that the current account surplus rose to a seasonally adjusted EUR 30 billion in May from EUR 22 billion in April. Asian markets were also trading in green, as the Asian Development Bank maintained its growth projection for developing Asia despite escalating trade conflicts between China and the United States. According to Asian Development Outlook Supplement, the region is set to grow at a pace of 5.7 percent in 2019 before slowing marginally to 5.6 percent in 2020.

Back home, Automobile industry stocks remained in focus, after the government asserted that subsidies for promotion of electric mobility in India will be only for commercial vehicles, and automobiles for personal usage will not be included.

The BSE Sensex is currently trading at 38405.61, down by 491.85 points or 1.26% after trading in a range of 38337.40 and 39058.73. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.00%, while Small cap index was down by 1.82%.

The lone gaining sectoral index on the BSE was Power up by 0.31%, while Auto down by 2.94%, Consumer Disc down by 2.03%, Bankex down by 2.00%, Realty down by 1.74% and Basic Materials down by 1.66% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.48%, TCS up by 0.76%, ONGC up by 0.56% and HCL Tech. up by 0.20%. On the flip side, Bajaj Finance down by 4.05%, Mahindra & Mahindra down by 3.84%, Tata Motors - DVR down by 3.84%, Tata Motors down by 3.67% and Indusind Bank down by 3.59% were the top losers.

Meanwhile, listing key positives of the current Union budget, Finance Minister Nirmala Sitharaman has said that the tax proposals in the Finance Bill 2019 are aimed at improving the ease of living and reducing pain of the citizens.

Nirmala Sitharaman also said that budget proposals will promote Make in India and digital payment. Referring to imposition of 2% TDS on cash withdrawal beyond Rs 1 crore, she said the tax could be adjusted against the liability of the assesses and hence there will be no additional burden on them.

On the proposal to hike tax liability on individuals earning more than Rs 2 crore, Finance Minister said it will not impact foreign portfolio investors (FPIs) provided they organised themselves as company.

The CNX Nifty is currently trading at 11442.40, down by 154.50 points or 1.33% after trading in a range of 11418.70 and 11640.35. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.64%, Coal India up by 1.18%, BPCL up by 0.97%, Titan up by 0.93% and TCS up by 0.72%. On the flip side, Bajaj Finance down by 4.03%, Mahindra & Mahindra down by 3.87%, Eicher Motors down by 3.86%, Indusind Bank down by 3.63% and Tata Motors down by 3.58% were the top losers.

All Asian market were trading in green; Nikkei 225 surged 420.75 points or 2% to 21,466.99, Hang Seng increased 284.22 points or 1% to 28,745.88, Taiwan Weighted strengthened 73.91 points or 0.68% to 10,873.19, Shanghai Composite gained 23.18 points or 0.8% to 2,924.36, Straits Times advanced 11.95 points or 0.36% to 3,373.00, KOSPI rose 27.81 points or 1.35% to 2,094.36 and Jakarta Composite soared 41.84 points or 0.65% to 6,445.13.

All European markets were trading in green; FTSE gained 45.96 points or 0.61% to 7,539.05, CAC rose 27.90 points or 0.50% to 5,578.45 and DAX was up by 69.35 points or 0.57% to 12,297.20.
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