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Key indices continue to trade lower in early noon deals
Sep-19-2019

Indian equity benchmarks continued their weak trade in early noon session, on the back of sustained selling activities by market-participants amid unabated foreign fund outflow and mixed global cues. Weak broader indices along with sell off at Yes Bank, Indusind Bank, ICICI Bank and Tata Steel counters dragged the markets lower. Markets continued dull trade with the India Meteorological Department’s (IMD) report that monsoon rains in India in the week to September 18 were above average for a third straight week, with floods hitting many districts in the central parts of the country and damaging crops such as soybean and pulses. Sentiments got undermined with a private report that India’s slowdown and a simmering shadow banking crisis is putting Prime Minister Narendra Modi’s goal of crafting a $5 trillion economy by 2025 at risk. Meanwhile, asserting that India's move to increase tariffs on the US apples has hit the farmers hard, a top American lawmaker has urged the Trump administration to ask New Delhi to reduce the duty for the country's apple growers.

On the global front, Asian markets were trading mostly in red with the lack of clarity on future monetary policy decisions after a widely anticipated interest rate cut by the US Federal Reserve. Back on street, in scrip specific developments, shares of Nalco gained after the company announced a record 115 per cent dividend payout amounting to Rs 1,072.73 crore for 2018-19. Besides, Avenue Supermarts gained on raising Rs 100 crore via NCDs.

The BSE Sensex is currently trading at 36261.42, down by 302.46 points or 0.83% after trading in a range of 36205.35 and 36613.93. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.66%, while Small cap index was down by 0.75%.

The only gaining sectoral indices on the BSE were Telecom was up by 0.61%, while Metal down by 1.42%, Oil & Gas down by 1.40%, Utilities down by 1.25%, IT down by 1.22% and Bankex was down by 1.18% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.21%, Tata Motors up by 0.78%, Asian Paints up by 0.72%, Tata Motors - DVR up by 0.18% and Hindustan Unilever was up by 0.10%. On the flip side, Yes Bank down by 6.08%, Indusind Bank down by 2.63%, ICICI Bank down by 2.56%, Tata Steel down by 2.47% and Vedanta was down by 2.04% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that a lot of export potential exists in the chemicals and allied sectors and it should make a combined effort to set higher goals and aspire for extraordinary results. He said the government has announced host of measures including mechanism to provide easy and timely availability of credit with affordable interest rates to exporters.

The minister said the industry should raise issue with the ministry if banks decline to provide loans at affordable rates. He noted that this is a listening government and it acts on the demands of the industry. He also asked the industry to explore new markets and push shipments of value added goods as there is a target to take exports to $1 trillion in the next five years.

Further, Goyal said he would take up industry's suggestion that a company should not be closed unless there is an order from the highest level. He has stated that Chemical and Allied Export Promotion Council of India (CAPEXIL) sector industries must embrace new technology and explore new markets, make value addition to the products that are being manufactured and not just remain in their comfort zone as manufactures and exporters of raw and basic products.

The CNX Nifty is currently trading at 10755.65, down by 85.00 points or 0.78% after trading in a range of 10732.70 and 10845.20. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.40%, Britannia Industries up by 1.07%, Tata Motors up by 0.94%, Asian Paints up by 0.69% and Coal India was up by 0.21%. On the flip side, Yes Bank down by 6.40%, Zee Entertainment down by 3.01%, Tata Steel down by 2.55%, Indusind Bank down by 2.53% and ICICI Bank was down by 2.50% were the top losers.

Asian markets were trading mostly in red, Shanghai Composite declined 2.31 points or 0.08% to 2,983.35, Taiwan Weighted dropped 34.75 points or 0.32% to 10,894.70, Jakarta Composite lost 25.11 points or 0.4% to 6,251.52 and Hang Seng was down by 258.65 points or 0.97% to 26,495.47.

On the other hand, Nikkei 225 surged 83.74 points or 0.38% to 22,044.45, KOSPI rose 7.06 points or 0.34% to 2,077.79 and Straits Times was up by 1.03 points or 0.03% to 3,167.87.
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