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Weak trade prevails in afternoon deals
Jul-22-2019

Indian equity benchmarks continued their weak trade in afternoon session, on the back of sustained selling activities by market-participants. The mood on the street remained cautious with report by the Ministry of Statistics and Programme Implementation indicating that as many as 345 infrastructure projects, each worth Rs 150 crore or more, have shown cost overruns to the tune of over Rs 3.28 lakh crore owing to delays and other reasons. Moreover, disappointing quarterly earnings by some blue- chip companies and weak global cues weighed on the sentiments. The market participants overlooked NITI Aayog Vice Chairman Rajiv Kumar’s statement that India will achieve Gross domestic product (GDP) growth of 8 percent plus from fiscal year 2020-2021 onwards as structural reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) are set to produce the benefits.

On the sectoral front, stocks related to power sector remained in focus with the Institute for Energy Economics and Financial Analysis (IEEFA) stating that India, which is aggressively pushing its policy of adding renewable energy to its energy profile, is likely to obtain 63 percent of its installed power capacity from non-fossil fuel sources, including hydro-electricity, by 2029-30.

The BSE Sensex is currently trading at 37983.55, down by 353.46 points or 0.92% after trading in a range of 37926.54 and 38333.52. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.79%, while Small cap index was down by 1.33%.

The top gaining sectoral indices on the BSE were Metal up by 0.99%, Energy up by 0.75%, TECK up by 0.52%, Healthcare up by 0.48% and Telecom up by 0.43%, while Realty down by 2.14%, Bankex down by 1.44%, Consumer Durables down by 1.17%, FMCG down by 0.84% and Capital Goods down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 8.53%, Vedanta up by 3.94%, Sun Pharma up by 3.16%, Maruti Suzuki up by 1.74% and Asian Paints up by 1.61%. On the flip side, HDFC down by 4.72%, Bajaj Finance down by 3.74%, HDFC Bank down by 3.63%, Kotak Mahindra Bank down by 2.79% and Hindustan Unilever down by 1.72% were the top losers.

Meanwhile, NITI Aayog Vice Chairman Rajiv Kumar has expressed confidence that India will achieve Gross domestic product (GDP) growth of 8 percent plus from fiscal year 2020-2021 onwards as structural reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) are set to produce the benefits. He stressed that in the next five, the government is focused on accelerating growth from the current about seven percent to more than eight percent that will help to achieve target of making India a $5 trillion economy.

Talking on the issue of job creation, Kumar emphasized that a very large number of jobs have been created in the country in the last five years. He noted that if it was always a jobless growth, then that would have shown up in social strife and social tensions and surely would have meant that this government would not have been re-elected. However, he acknowledged that the nature and quality of jobs is not meeting the aspirations of the country's young people and they want better quality jobs that will engage them fully. He added ‘that has to be ensured by us improving the investment climate for domestic investors as well as foreign direct investors.'

NITI Aayog Vice Chairman further said that the Union Budget, presented earlier this month, has taken big steps forward for facilitating and further improving ease of doing business by liberalising the inflows of foreign direct investment (FDI). Highlighting the potential in the agriculture sector, which has 43 percent of the workforce, he said investment in the agro-processing sectors and improvement in agricultural yields will help exponentially in job creation.

The CNX Nifty is currently trading at 11328.00, down by 91.25 points or 0.80% after trading in a range of 11301.25 and 11398.15. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 8.41%, Vedanta up by 3.91%, Sun Pharma up by 3.00%, Zee Entertainment up by 2.86% and Indiabulls Housing Finance up by 2.09%. On the flip side, Bajaj Finserv down by 5.44%, HDFC down by 4.71%, Bajaj Finance down by 3.72%, HDFC Bank down by 3.68% and Kotak Mahindra Bank down by 2.68% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 318.17 points or 1.11% to 28,447.23, Nikkei 225 slipped 50.20 points or 0.23% to 21,416.79, Shanghai Composite declined 31.35 points or 1.07% to 2,892.85, Jakarta Composite lost 26.76 points or 0.41% to 6,429.78, Straits Times trembled 21.96 points or 0.65% to 3,356.00 and KOSPI fell 1.02 points or 0.05% to 2,093.34.

On the flip side, Taiwan Weighted strengthened 71.34 points or 0.66% to 10,944.53.
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