Midday Review

Date Heading Details
14-Jun-2019   15:05 Hrs IST Weak trade persists; Sensex down by around 150 points <p align="justify">Weak trade continued on Dalal Street in late afternoon session, on the back of negative cues from European markets. Heavy losses led by Realty, Telecom and Banking stocks also weighed on the domestic sentiments. Traders remained pessimistic with ICRA's research report stating that the earnings released by 642 companies in the Indian corporate sector revealed that the revenue growth in the fourth quarter (January-March) of FY18-19 hit a six-quarter low at 10 percent. It added that weak consumer sentiments and softening of commodity prices led to a fall in the revenue growth in the last quarter of FY19. The street overlooked India Ratings and Research's (Ind-Ra) statement that the Reserve Bank of India (RBI) has scope for another interest rate cut due to lower WPI inflation.</p><p align="justify">On the global front, European markets were trading in red, as Hungary's industrial production grew at the slowest rate in three months in April. The data from the Hungarian Central Statistical Office showed that industrial production climbed 6.0 percent year-on-year in April, after a 7.8 percent increase in March. The latest growth in production was the lowest since January, when it was 3.6 percent.&nbsp; Asian markets were also trading in red.</p><p align="justify">The BSE Sensex is currently trading at 39598.51, down by 142.85 points or 0.36% after trading in a range of 39514.72 and 39799.90. There were 10 stocks advancing against 20 stocks declining, while 1 stock remained unchanged on the index.</p><p align="justify">The broader indices were trading in red; the BSE Mid cap index was down by 0.58%, while Small cap index was down by 0.41%.</p><p align="justify">The top gaining sectoral indices on the BSE were Metal up by 0.32%, Capital Goods up by 0.23%, IT up by 0.05% and PSU up by 0.01% while, Realty down by 1.21%, Telecom down by 1.10%, Bankex down by 0.87%, FMCG down by 0.72% and Auto down by 0.60% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Vedanta up by 1.19%, Tata Steel up by 0.69%, Sun Pharma up by 0.67%, ONGC up by 0.62% and Larsen &amp; Toubro up by 0.56%. On the flip side, Indusind Bank down by 4.42%, Axis Bank down by 2.04%, Bharti Airtel down by 2.00%, Tata Motors - DVR down by 1.87% and Yes Bank down by 1.66% were the top losers.</p><p align="justify">Meanwhile, in order to meet the durable liquidity needs of the system going forward, the Reserve Bank of India (RBI) has said that it will infuse Rs 12,500 crore into the financial system through purchase of government securities (G-sec) under the Open Market Operation (OMO) on June 20, 2019.</p><p align="justify">It added that the decision has been taken based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward. The government securities to be purchased in the auction.</p><p align="justify">Recently, the RBI had injected Rs 15,000 crore into the system through bond purchases. The RBI uses OMO for injecting liquidity into the system through the purchase of government bonds (G-sec) to regulate money supply in the market. The sale or buying of g-secs infuses or reduces liquidity.</p><p align="justify">The CNX Nifty is currently trading at 11855.70, down by 58.35 points or 0.49% after trading in a range of 11839.35 and 11911.85. There were 14 stocks advancing against 36 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Bharti Infratel up by 1.29%, Vedanta up by 1.22%, Sun Pharma up by 1.18%, ONGC up by 0.56% and Tata Steel up by 0.55%. On the flip side, Zee Entertainment down by 4.57%, Indusind Bank down by 4.40%, Bharti Airtel down by 2.47%, Axis Bank down by 2.09% and Yes Bank down by 1.84% were the top losers.</p><p align="justify">Asian markets were trading mostly in red; Hang Seng decreased 215.01 points or 0.79% to 27,079.70, Taiwan Weighted dropped 36.34 points or 0.34% to 10,524.67, Jakarta Composite lost 22.30 points or 0.36% to 6,250.78, Shanghai Composite declined 30.26 points or 1.04% to 2,880.48, KOSPI fell 7.74 points or 0.37% to 2,095.41 and Straits Times was down by 5.95 points or 0.18% to 3,214.71. On the flip side, Nikkei 225 was up by 84.89 points or 0.4% to 21,116.89.</p><p align="justify">All European markets were trading in red; FTSE lost 11.32 points or 0.15% to 7,357.25, CAC fell 10.36 points or 0.19% to 5,365.27 and DAX was down by 69.66 points or 0.57% to 12,099.39.</p><p align="justify"><br></p>
14-Jun-2019   12:55 Hrs IST Key indices continue to trade lower in afternoon deals <p align="justify">Indian equity benchmarks continued their weak trade in afternoon session, on the back of sustained selling activities by market-participants amid weakness across Asian peers. The mood on the street remained cautious with ICRA's research report stating that the earnings released by 642 companies in the Indian corporate sector revealed that the revenue growth in the fourth quarter (January-March) of FY18-19 hit a six-quarter low at 10 percent. It added that weak consumer sentiments and softening of commodity prices led to a fall in the revenue growth in the last quarter of FY19. However, further fall got restricted on the back of easing wholesale price index (WPI) inflation data. Wholesale price-based inflation slipped to a 22-month low of 2.45% in May helped by falling prices of food articles, fuel and power items. </p><p align="justify">On the global front, Asian markets were trading mostly in red, ahead of key Chinese data that could provide more clues on how heavily the US-Sino trade war is weighing on the economy, while oil prices were supported by supply concerns after attacks on tankers in the Gulf of Oman. Back home, the BSE Sensex is currently trading at 39592.22, down by 149.14 points or 0.38% after trading in a range of 39514.72 and 39799.90. There were 7 stocks advancing against 24 stocks declining on the index.</p><p align="justify">The broader indices were trading in red; the BSE Mid cap index was down by 0.41%, while Small cap index down by 0.34%.</p><p align="justify">The top gaining sectoral indices on the BSE were Capital Goods up by 0.44%, Metal up by 0.27%, PSU up by 0.18%, Industrials up by 0.09% and Oil &amp; Gas was up by 0.03%, while Realty down by 1.82%, Telecom down by 0.96%, Healthcare down by 0.89%, Bankex down by 0.74% and Auto was down by 0.59% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Larsen &amp; Toubro up by 0.85%, ONGC up by 0.83%, Tata Steel up by 0.72%, Vedanta up by 0.65% and Power Grid was up by 0.62%. On the flip side, Indusind Bank down by 4.75%, Tata Motors - DVR down by 1.93%, Bharti Airtel down by 1.67%, Kotak Mahindra Bank down by 1.62% and Sun Pharma was down by 1.47% were the top losers.</p><p align="justify">Meanwhile, the Labour Ministry has said that the government has reduced the total rate of contribution made by workers and employers towards the Employees' State Insurance (ESI) scheme to 4 percent from the existing 6.5 percent for the first time in over two decades. A move would results in an estimated annual saving of around Rs 5,000 crore for firms. The reduced rates will be effective from July 1, 2019. This would benefit 3.6 crore employees and 12.85 lakh employers. </p><p align="justify">The ministry has stated that said that the reduced rate of contribution will bring about a substantial relief to workers and facilitate further enrollment of workers under the Employees' State Insurance (ESIC) scheme and bring more and more workforce into the formal sector. Similarly, reduction in the share of contribution of employers will reduce the financial liability of the establishments leading to improved viability of these establishments. This shall also lead to enhanced Ease of Doing Business. It is also expected that reduction in rate of ESI contribution shall lead to improved compliance of law.&nbsp; </p><p align="justify">The ESI Act provides for medical, cash, maternity, disability and dependent benefits to the Insured Persons under the Act. The ESI Act is administered by Employees' State Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded by the contributions made by the employers and the employees. Under the ESI Act, employers and employees both contribute their shares respectively. The Government of India through Ministry of Labour and Employment decides the rate of contribution under the ESI Act.</p><p align="justify">The CNX Nifty is currently trading at 11867.80, down by 46.25 points or 0.39% after trading in a range of 11839.35 and 11911.85. There were 15 stocks advancing against 35 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Indiabulls Housing Finance up by 1.12%, Bharti Infratel up by 1.03%, ONGC up by 1.01%, Tata Steel up by 0.92% and Vedanta was up by 0.86%. On the flip side, Zee Entertainment down by 5.46%, Indusind Bank down by 4.22%, Bharti Airtel down by 1.87%, Kotak Mahindra Bank down by 1.51% and Bajaj Auto was down by 1.33% were the top losers.</p><p align="justify">Asian markets were trading mostly in red; Hang Seng decreased 215.01 points or 0.79% to 27,079.70, Taiwan Weighted dropped 36.34 points or 0.34% to 10,524.67, Jakarta Composite lost 22.30 points or 0.36% to 6,250.78, Shanghai Composite declined 30.26 points or 1.04% to 2,880.48, KOSPI fell 7.74 points or 0.37% to 2,095.41 and Straits Times was down by 5.95 points or 0.18% to 3,214.71. On the flip side, Nikkei 225 was up by 84.89 points or 0.4% to 21,116.89. </p><p align="justify"><br></p>
14-Jun-2019   11:59 Hrs IST Indian equity benchmarks continue weak trade in early noon session
14-Jun-2019   11:19 Hrs IST Local equities continue lackluster trade
14-Jun-2019   10:19 Hrs IST Benchmarks witness bearish trend in early deals
13-Jun-2019   15:05 Hrs IST Markets trim losses in late afternoon deals
13-Jun-2019   12:53 Hrs IST Weak trade continues on Dalal Street
13-Jun-2019   12:02 Hrs IST Benchmarks extend losses in early noon session
13-Jun-2019   11:19 Hrs IST Local equities continue weak trade; Sensex below 39,600 mark
13-Jun-2019   10:11 Hrs IST Benchmarks trade lower in early deals; Nifty slips below 11,900 mark

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