BackMarkets trade mixed at noon; Yes Bank, Kotak Mahindra Bank rise 1-2.5%
At 12:00 pm, the benchmark BSE Sensex fell 0.33% to 40,190.59 points, the Nifty 50 index slipped 0.34% to 11,867.40 points.Asian markets were trading in the red tracking the fall in the US equities
PremiumIndian equity markets on Monday traded mixed, tracking fall in global equities. Investors were cautious due to fresh doubts over the US-China trade deal and ahead of key domestic macro-economic data. The government will release index of industrial production, or IIP, data for September later today.
At 12:00 pm, the benchmark BSE Sensex fell 0.33% to 40,190.59 points, the Nifty 50 index slipped 0.34% to 11,867.40 points.
Asian markets were trading in the red tracking the fall in the US equities after President Donald Trump said on Friday the US government has not agreed with China to roll back all tariffs.
On the domestic front, investors await key macro-economic data. The government will issue IIP data for September after 5 pm today. According to a Bloomberg survey, India’s IIP is expected to contract 2.5% from contraction of 1.1% in August.
The government will also issue India’s headline inflation rate based on consumer price index (CPI) and wholesale price index (WPI) for October on 13 November and 14 November, respectively. According to a Bloomberg survey, CPI will be at 4.34% from 3.99% a month ago, and WPI is expected to be at (-) 0.22% from 0.33% last month.
"Uncertainties over the formation of government in Maharashtra have also spoiled the sentiment in the second half of the trading session. Except for Nifty Reality Index, other sectors failed to hold at higher levels and came under hefty profit-taking pressure from the market participants. The excitement from Q2 performances of Nifty 50 companies is fading away and this would trigger further selling in the near term," said Shrikant Chouhan, senior vice-president, equity technical research, Kotak Securities.
Among the gainers, state-owned NTPC Ltd rose 2.3% after the company on Saturday posted a 38% rise in its consolidated net profit to ₹3,408.92 crore in the quarter to September, driven by higher revenues. Yes Bank Ltd and Kotak Mahindra Bank Ltd also rose 2.5% and 1%, respectively.
Among laggards, Vedanta Ltd fell 1.6% followed by Tata Consultancy Services Ltd and Maruti Suzuki India Ltd, which were down 1.5% each.
Bank of Baroda rose 3% after the company reported a five-fold jump in its net profit to ₹736.68 crore in the second quarter-ended September.
"We usually see stock reacting sharply lower during the corrective phase of the benchmark index. Thus, we advise booking some profit off the table and focusing more on stock selection. Also, we suggest keeping a close eye on the global developments and earnings announcements for further cues. Since the broader indices are still underperforming, we advise preferring index majors over the others", said Ajit Mishra, vice president, research, Religare Broking Ltd.
The sentiment in markets was also dented after Moody's Investors Service early on Friday lowered India’s outlook to negative from stable, while retaining the issuer rating at Baa2.
"In our view, this will take time to work on the ground and reflect in numbers. One of the major concerns is on the fiscal front - with lower tax incomes and higher spending - leading to a ballooning deficit. However, it appears that the government would be using the non-traditional routes including disinvestment/privatisation to fill the income gap. The long-term fundamentals of Indian economy continue to remain strong with healthy growth and a domestic consumption driven economy," said Motilal Oswal, managing director & CEO, Motilal Oswal Financial Services.
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