Indian equity benchmarks trimmed losses but continued their trade on a weak note below neutral line in late afternoon session amid weak European markets. Sentiments remained subdued with ICRA’s report stating that Indian gross value added (GVA) at basic prices to ease to 6.2 percent in Q3FY17 from 6.9 percent in Q3 FY16 and Gross Domestic Product (GDP) growth likely to decline to 6.5 percent from 7.2 percent a year ago. However, the broader indices showed some fervor and traded with notable gains, performing better than their larger peers. On sectoral front, telecom stocks were trading low as Mukesh Ambani announced 100 million subscribers for Reliance Jio and offered new plans saying that Jio will start offering tariff plans from April 1 including free domestic calling to all networks. However, stocks related to steel sector were trading higher with Steel Minister Chaudhary Birender Singh’s statement that the steel sector is expected to witness improvement in demand in the coming months, due to increased spending on infrastructure coupled with long-term government policies. The minister said that “the steel demand has grown 3.3 per cent during April -December 2016. This is expected to improve in the coming months”.
On the global front, European markets were trading in red as investors remained on sidelines ahead of the release of key eurozone manufacturing and service sector surveys and several speeches from US central bank officials later in the day. Asian markets were trading in green. Back home, in scrip specific development, Bajaj Electricals traded higher after the company entered into a trademark licence agreement with Morphy Richards of United Kingdom to renew the exclusive license for use of trademark ‘Morphy Richards’, for a further period of five years from April 25, 2017, on payment of royalty.
The BSE Sensex is currently trading at 28632.93, down by 28.65 points or 0.10% after trading in a range of 28597.33 and 28726.10. There were 15 stocks advancing against 13 stocks declining on the index, while 2 stocks remained unchanged.
The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index was up by 0.44%.
The top gaining sectoral indices on the BSE were Consumer Durables up by 1.93%, Oil & Gas up by 0.77%, Energy up by 0.69%, PSU up by 0.66% and Industrials up by 0.56%, while Telecom down by 1.89%, TECK down by 0.69%, IT down by 0.45%, FMCG down by 0.16% and Utilities down by 0.10% were the top losing indices on BSE.
The top gainers on the Sensex were Axis Bank up by 1.87%, Asian Paints up by 1.25%, Hindustan Unilever up by 0.84%, Tata Motors up by 0.65% and Hero MotoCorp up by 0.61%. On the flip side, Bharti Airtel down by 2.42%, TCS down by 1.70%, ITC down by 1.18%, Sun Pharma down by 0.97% and Infosys down by 0.57% were the top losers.
Meanwhile, asserting the ailing domestic steel industry, Steel Minister Chaudhary Birender Singh has said that the steel sector is expected to witness improvement in demand in the coming months, due to increased spending on infrastructure coupled with long-term government policies. The minister said that “The steel demand has grown 3.3 per cent during April -December 2016. This is expected to improve in the coming months”.
The minister further stated that the current scenario in the steel sector is well known, and hence the government will take all necessary measures as and when required to support the industry. While noting that India has been a bright spot in global economy, Steel Minister stated that as per World Steel Association prediction, steel demand in India will grow at the rate of 5.7 per cent in 2017.
Steel Minister pointed that the government has provided extensive support to the domestic steel industry by way of various trade remedial measures and said that minimum import prices (MIP) was notified as an emergency measure as other trade remedial measures such as anti-dumping rules and safeguard rules are process oriented and are time consuming in terms of implementation and impact. However, he noted that MIP was gradually phased out as and when suitable trade remedial measures were put in place.
The CNX Nifty is currently trading at 8874.75, down by 4.45 points or 0.05% after trading in a range of 8860.95 and 8897.15. There were 27 stocks advancing against 23 stocks declining on the index, while 1 stock remained unchanged.
The top gainers on Nifty were Axis Bank up by 1.86%, Tech Mahindra up by 1.56%, Yes Bank up by 1.26%, Asian Paints up by 1.25% and BHEL up by 1.17%. On the flip side, Bharti Infratel down by 3.82%, Bharti Airtel down by 2.65%, TCS down by 1.53%, Tata Power down by 1.46% and Idea Cellular down by 1.34% were the top losers.
Asian markets were trading mostly in green; Jakarta Composite increased 0.72 points or 0.01% to 5,360.01, Taiwan Weighted increased 10.73 points or 0.11% to 9,763.93, Shanghai Composite increased 13.37 points or 0.41% to 3,253.33, KOSPI Index increased 18.54 points or 0.89% to 2,102.93 and Nikkei 225 increased 130.36 points or 0.68% to 19,381.44. On the flip side, Hang Seng decreased 182.45 points or 0.76% to 23,963.63 and FTSE Bursa Malaysia KLCI decreased 4.93 points or 0.29% to 1,707.65.
All European markets were trading in red; UK’s FTSE 100 decreased 19.84 points or 0.27% to 7,280.02, Germany’s DAX decreased 12.96 points or 0.11% to 11,814.66 and France’s CAC decreased 4.76 points or 0.1% to 4,860.23.