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Indian bourses trade marginally lower in afternoon deals
Indian equities trimmed most of their losses but continued to trade in red in the afternoon session, as India's Wholesale Price Index (WPI) inflation worsened to 3.1 percent in January from 2.59 percent in December, registering a 0.1 percent increase. This is the highest inflation figure in last eight months. Traders also took a note of the International Monetary Fund (IMF) stating that India urgently needs more ambitious structural and financial sector reform measures and a medium-term fiscal consolidation strategy due to the rising debt levels. However, the markets managed to pare most of their losses as global ratings agency Standard and Poor's affirmed India's sovereign rating at BBB- with stable outlook, saying the country's GDP growth is likely to gradually recover towards longer-term trend rates over the next two to three years. On the sectoral front, stocks related to logistics sector remained in focus with private report stating that logistics leasing activity increased 30 percent in 2019 to touch 33 million sqft, mainly driven by policy announcements made by the government which boosted e-commerce and retail sectors.
On the global front, Asian Markets were trading mostly higher helped by hopes governments will make provisions to soften the impact on their economies from the coronavirus epidemic. Back home, the BSE Sensex is currently trading at 41420.38, down by 39.41 points or 0.10% after trading in a range of 41183.13 and 41702.36. There were 14 stocks advancing against 16 stocks declining on the index.
The broader indices were trading mixed; the BSE Mid cap index fell 0.08%, while Small cap index was up by 0.15%.
The top gaining sectoral indices on the BSE were Telecom up by 1.99%, Energy up by 1.14%, Healthcare up by 0.43%, Consumer Durables up by 0.37% and TECK was up by 0.34%, while Utilities down by 1.82%, Power down by 1.60%, Bankex down by 0.75%, PSU down by 0.73% and FMCG was down by 0.57% were the top losing indices on BSE.
The top gainers on the Sensex were Bharti Airtel up by 3.87%, Reliance Industries up by 1.39%, Bajaj Auto up by 1.00%, Sun Pharma up by 0.94% and Tech Mahindra was up by 0.82%. On the flip side, Indusind Bank down by 2.45%, Power Grid down by 2.39%, NTPC down by 1.52%, ONGC down by 1.47% and Axis Bank was down by 1.41% were the top losers.
Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the government is focusing on 12-13 sectors such as textiles where India has a competitive edge to boost exports. He said that exports grow when there is both comparative and competitive edge on different sectors.
Citing an example of man-made textiles, the minister said the government is putting attention as over the years, India has always focused on cotton textiles, whereas the world has moved on to man-made textiles. He noted that man-made textiles industry has the potential to increase exports to $100 billion in the next 10 years from the current level of about $37 billion. He added that services sector exports are recording healthy growth rates.
On India entering into the phase of protectionism, Goyal said protection is necessary where the country has domestic capacity. He said that such practices also become evident when there is an unfair competition or high domestic cost of production. He said ‘also we are conscious that some countries give subsidies both open and opaque, due to which import sometimes become very attractive and therefore certain degree of protection is required for our domestic industry.
The CNX Nifty is currently trading at 12160.05, down by 14.60 points or 0.12% after trading in a range of 12097.90 and 12246.70. There were 26 stocks advancing against 24 stocks declining on the index.
The top gainers on Nifty were Yes Bank up by 5.65%, Bharti Airtel up by 3.86%, BPCL up by 2.84%, UPL up by 1.96% and Tata Motors was up by 1.83%. On the flip side, Bharti Infratel down by 5.27%, GAIL India down by 3.88%, Indusind Bank down by 2.48%, Power Grid down by 2.47% and Eicher Motors was down by 2.08% were the top losers.
Asian Markets were trading mostly higher; Hang Seng increased 95.92 points or 0.35% to 27,825.92, Taiwan Weighted strengthened 23.92 points or 0.2% to 11,815.70, KOSPI rose 10.63 points or 0.48% to 2,243.59, Shanghai Composite gained 4.53 points or 0.16% to 2,910.60, Straits Times was up by 0.51 points or 0.02% to 3,220.60.
On the flip side, Jakarta Composite lost 3.40 points or 0.06% to 5,868.55 and Nikkei 225 was down by 140.14 points or 0.59% to 23,687.59.
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