Midday Review

Date Heading Details
27-Jan-2020   15:08 Hrs IST Markets' pain deepens in late afternoon deals <p align="justify">Indian equity benchmarks extended their losses in late afternoon session, on account of weak cues from European markets. Heavy selling at Metal, Telecom and Power counters dragged the markets at day's low points, while Tata Steel performed the worst among all major industry leaders on the BSE. Market participants paid no heed towards the Reserve bank of India (RBI) Governor Shaktikanta Das' statement that structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth.</p><p align="justify">On the global front, European markets were trading in red, as Finland's manufacturing sentiment deteriorated in January. The survey data from the Confederation of Finnish Industries showed that the manufacturing confidence index decreased to -8 in January from -5 in December.&nbsp;The reading was well below its long-term average of +1. Asian markets were also trading in red, with most countries in the Asia-Pacific region celebrating the lunar New Year holiday. Most of the regional stock are also closed for the holiday, including South Korea, Malaysia, Singapore, Taiwan, China and Hong Kong, among others.</p><p align="justify">The BSE Sensex is currently trading at 41216.96, down by 396.23 points or 0.95% after trading in a range of 41189.32 and 41516.27. There were 9 stocks advancing against 21 stocks declining on the index.</p><p align="justify">The broader indices were trading in green and red; the BSE Mid cap index was down by 0.23%, while Small cap index was up by 0.08%.</p><p align="justify">The lone gaining sectoral index on the BSE was Healthcare up by 1.50%, while Metal down by 3.02%, Telecom down by 1.76%, Power down by 1.49%, PSU down by 1.23% and Bankex down by 1.08% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Mahindra &amp; Mahindra up by 1.80%, Tech Mahindra up by 0.93%, Ultratech Cement up by 0.64%, ICICI Bank up by 0.57% and Asian Paints up by 0.44%. On the flip side, Tata Steel down by 3.91%, Indusind Bank down by 3.18%, HDFC Bank down by 2.44%, SBI down by 2.33% and Power Grid down by 2.01% were the top losers.</p><p align="justify">Meanwhile, in order to provide a durable push to demand and boost growth, the Reserve bank of India (RBI) Governor Shaktikanta Das has said that structural reforms and fiscal measures may have to be continued and further activated.</p><p align="justify">Das further said that the RBI constantly updates its assessment of the economy based on incoming data and survey-based information juxtaposed with model-based estimates for policy formulation. He also added that this approach helped the RBI to use the policy space opened up by the expected moderation in inflation and act early, recognizing the imminent slow down before it was confirmed by data subsequently.</p><p align="justify">Besides, RBI Governor said that the government is also focusing on infrastructure spending which will augment the growth potential of the economy. As per the Das, states should also play an important role by enhancing capital expenditure which has a high multiplier effect.</p><p align="justify">The CNX Nifty is currently trading at 12138.45, down by 109.80 points or 0.90% after trading in a range of 12126.00 and 12216.60. There were 14 stocks advancing against 36 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Dr. Reddy's Lab up by 5.10%, Mahindra &amp; Mahindra up by 1.95%, Cipla up by 1.27%, Tech Mahindra up by 1.07% and BPCL up by 0.85%. On the flip side, Vedanta down by 4.20%, Tata Steel down by 3.98%, JSW Steel down by 3.25%, Indusind Bank down by 3.03% and Hindalco down by 2.99% were the top losers.</p><p align="justify">Asian markets were trading in red; Nikkei 225 slipped 483.67 points or 2.03% to 23,343.51 and Jakarta Composite lost 79.91 points or 1.28% to 6,164.20.</p><p align="justify">All European markets were trading in red; UK's FTSE 100 lost 126.06 points or 1.66% to 7,459.92, France's CAC slipped 97.47 points or 1.62% to 5,926.79 and Germany's DAX was down by 201.19 points or 1.48% to 13,375.49.<br></p>
27-Jan-2020   12:52 Hrs IST Weakness persists in markets; Nifty below 12,200 mark <p align="justify">Indian benchmark indices continued to trade in red in afternoon session due to selling in frontline blue chip stocks amid weak global cues. The mood on the street remained cautious with Nobel laureate and economist Abhijit Banerjee's statement the banking sector in the country is ‘stressed' and the government is in no position to bail it out. He said the demand slowdown in the automobile sector also shows that people are lacking confidence in the economy. Some pessimism also came in with private report stating that India's corporate and income tax collection for the current year is likely to fall for the first time in at least two decades, amid a sharp fall in economic growth and cut in corporate tax rates. However, further fall got restricted as some support came with IMF chief Kristalina Georgieva's statement that growth slowdown in India appears to be temporary and she expects the momentum to improve going ahead. On the sectoral front, jewellery stocks remained in focus with the commerce ministry data showing that gold imports fell 6.77% to $23 billion during the April-December period of the current financial year. <p align="justify">On the global front, Asian markets were trading in red as China announced sharp increases in the number of people affected in an outbreak of a potentially deadly virus. Many regional markets, including China's, were closed in Asia for Lunar New Year holidays. Australia was closed for Australia Day. Back home, the BSE Sensex is currently trading at 41430.63, down by 182.56 points or 0.44% after trading in a range of 41323.29 and 41516.27. There were 11 stocks advancing against 19 stocks declining on the index.<p align="justify">The broader indices were trading in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 0.57%.<p align="justify">The top gaining sectoral indices on the BSE were Healthcare up by 1.03%, Realty up by 0.67%, Auto up by 0.64%, Consumer Discretionary up by 0.55% and Consumer Durables was up by 0.26%, while Metal down by 2.42%, Telecom down by 0.97%, TECK down by 0.73%, IT down by 0.67% and PSU was &nbsp;down by 0.43% were the top losing indices on BSE.<p align="justify">The top gainers on the Sensex were Mahindra &amp; Mahindra up by 2.38%, ICICI Bank up by 1.65%, Ultratech Cement up by 1.24%, Axis Bank up by 1.04% and Maruti Suzuki was up by 1.04%. On the flip side, Tata Steel down by 3.12%, Kotak Mahindra Bank down by 1.56%, HDFC Bank down by 1.55%, Indusind Bank down by 1.33% and HDFC was&nbsp;down by 1.24% were the top losers.<p align="justify">Meanwhile, India and the US have decided to engage in talks in good faith to sort out the dispute over American import duties on certain Indian steel products, wherein Washington is yet to fully comply with the WTO rulings. The WTO dispute resolution body has ruled against the US in this case stating that the high duty imposed by America on certain hot-rolled carbon steel flat products from India was inconsistent with various provisions of the WTO's Agreement on Subsidies and Countervailing Measures. The US agreed to resolve the matter amicably as the appellate body of the WTO's dispute settlement mechanism has become dysfunctional since December 2019. <p align="justify">America has failed to fully comply with a six-year-old ruling of the WTO's dispute panel over import duties on certain Indian steel products which has endorsed India's belief that not only the practices followed by the US, the law itself violates WTO agreements. The compliance panel has found that the US has not complied with the rulings and recommendations of the dispute panel. India has dragged the US in WTO in 2012, alleging that Washington's move to impose high duties on imports of certain Indian steel products are global trade rules.<p align="justify">In December 2014, the WTO dispute panel had ruled against the US imposing high countervailing duties on imports of certain Indian steel products. Later the WTO's appellate body too ruled that the high duties imposed by the US were inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures. Then in June 2017, India again moved the WTO alleging that America has not fully complied with those rulings. India had stated that a reasonable period of time for the US to comply with the WTO's ruling had expired on April 18, 2016.<p align="justify">The CNX Nifty is currently trading at 12198.00, down by 50.25 points or 0.41% after trading in a range of 12154.60 and 12216.60. There were 17 stocks advancing against 33 stocks declining on the index.<p align="justify">The top gainers on Nifty were Mahindra &amp; Mahindra up by 2.41%, Dr. Reddys Lab up by 2.10%, ICICI Bank up by 1.76%, Ultratech Cement up by 1.28% and Maruti Suzuki was up by 1.25%. On the flip side, JSW Steel down by 3.64%, Tata Steel down by 3.09%, Hindalco down by 2.65%, Vedanta down by 2.63% and HDFC Bank was down by 1.57% were the top losers.<p align="justify">Asian markets were trading in red, Nikkei 225 slipped 483.67 points or 2.03% to 23,343.51 and Jakarta Composite lost 79.91 points or 1.28% to 6,164.20.</p>
27-Jan-2020   12:01 Hrs IST Markets continue to trade lower in early noon session
27-Jan-2020   11:19 Hrs IST Local equities continue lackluster trade
27-Jan-2020   10:09 Hrs IST Benchmarks trade lower amid global sell-off
24-Jan-2020   15:06 Hrs IST Markets at day's high
24-Jan-2020   12:58 Hrs IST Local bourses hold gains in afternoon deals
24-Jan-2020   12:01 Hrs IST Indices pare some gains in early noon session
24-Jan-2020   11:22 Hrs IST Local equities gather some pace in morning deals; Nifty surpasses 12,200 mark
24-Jan-2020   10:09 Hrs IST Markets trade higher with marginal gains in early deals