Benchmarks continue to trade lower in a tight range

Indian markets continue to move in tight range, there is no respite for the major indices, which lost their way since beginning of the trade and were down by around half a percent. There are no cues for the markets to give any direction in either way and the traders remained cautious with mixed trade data, while the Indian trade deficit narrowed to $10.4 billion in May against $11.2 billion in the same month a year ago, but declining for the sixth straight month the country's merchandise exports shrank 20.2 percent to $22.35 billion in May, dragged down by a slump in global demand. Sentiments also remained dampened on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 604.86 crore yesterday as per provisional data released by the stock exchanges. In the currency front, the rupee pulled back 9 paise to 64.07 against the dollar, snapping its three-day falling streak at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.

On the global front, Asian markets continued their losing streak today also with the Japanese Nikkei shedding nearly 100 points and Hang Seng down by about 90 points. European counters too made a weak start with CAC, DAX and FTSE all trading in red with a cut of around half a percent in early deals. Back home, on the sectoral front, software, public sector undertaking and technology witnessed the maximum gain in trade, while realty, consumer durables and oil and gas remained the top losers. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 872 shares on the gaining side against 1,439 shares on the losing side while 123 shares remain unchanged.

The BSE Sensex is currently trading at 26499.42, down by 87.13 points or 0.33% after trading in a range of 26461.49 and 26597.28. There were 13 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.11%, while Small cap index down by 0.33%.

The gaining sectoral indices on the BSE were IT up by 0.08%, PSU up by 0.06%, TECK up by 0.04%, INFRA up by 0.02%, while Realty down by 0.91%, Consumer Durables down by 0.59%, Oil & Gas down by 0.48%, Bankex down by 0.37%, Auto down by 0.34% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 0.89%, Coal India up by 0.63%, ITC up by 0.60%, Hindalco up by 0.57% and Wipro up by 0.54%. On the flip side, HDFC down by 2.01%, Vedanta down by 1.77%, BHEL down by 1.33%, Tata Steel down by 1.30% and Dr. Reddys Lab down by 1.17% were the top losers.

Meanwhile, for a third consecutive time, petrol price has been hiked by 64 paise a litre, but diesel prices were cut by Rs 1.35 per litre in line with trend in global oil rates. Prices were last time hiked by Rs 3.13 a litre and diesel by Rs 2.71 per litre on May 16. However, on June 1, companies skipped raising rates. The State-owned fuel retailers have said that since last price change, there has been an increase in international prices of petrol while international prices of diesel have shown a downward trend. On the same time Indian rupee-US dollar exchange rate has depreciated during the period that led to alignment with international prices and adjustment for foreign exchange rates.

The last three hikes in petrol rates have wiped away more than one-third of the gains that had accrued to consumers when global rates began to fall in August. In case of diesel, the reduction has halted two consecutive increases during last month and partly restored the gains taken away in May.

Petrol in Delhi will cost Rs 66.93 per litre instead of Rs 66.29 at present. A litre of diesel will cost Rs 50.93 per litre as opposed to Rs 52.28. Petrol prices have been cumulatively cut by Rs 17.11 a litre in 10 reductions between August and February and diesel by Rs 12.96 a litre in six cuts between October and February.

PSU oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

The CNX Nifty is currently trading at 7985.55, down by 28.35 points or 0.35% after trading in a range of 7972.75 and 8010.50. There were 21 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 1.18%, PNB up by 1.15%, NMDC up by 1.04%, Power Grid up by 0.89% and Indusind Bank up by 0.78%. On the flip side, Idea Cellular down by 3.10%, Cairn India down by 2.93%, HDFC down by 2.00%, Vedanta down by 1.85% and BHEL down by 1.53% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 229.06 points or 0.85% to 26,632.75, Shanghai Composite tumbled 165.93 points or 3.28% to 4,897.07, Nikkei 225 shed 129.85 points or 0.64% to 20,257.94, Taiwan Weighted declined 46.7 points or 0.5% to 9,212.78, Straits Times dropped 25.73 points or 0.77% to 3,297.40 and KOSPI Index was down by 13.6 points or 0.67% to 2,028.72. On the flip side, FTSE Bursa Malaysia KLCI increased 0.58 points or 0.03% to 1,722.74 and Jakarta Composite was up by 39.69 points or 0.82% to 4,877.48.

European Markets were trading in the red; Germany’s DAX dropped 1.89%, UK’s FTSE declined 0.20% and France’s CAC was down by 0.66%.