Benchmarks suffer sharp plunge in early deals

After making a flat opening, Indian equity markets have plunged deep in red and are now trading with losses of around a percent, with Sensex and Nifty slipping below psychologically crucial 27,850 and 8,500 levels respectively, in absence of positive triggers and sustained selling activities by market-participants on weak global cues. Sentiment turned negative on report that India's merchandise exports contracted for the eighth month running in July, registering a 10.3 per cent drop over last year. The trade deficit widened to $12.8 billion in July from $10.8 billion in June. The sentiments were further weighed down by Indian rupee depreciating 25 paise to 65.1256 against the US dollar in trade today. However, PSU banks were in trading in green after the government unveiled a seven-pronged revamp plan to shake up the struggling state-run banks, including a Rs 20,000-crore capital infusion lifeline. In scrip specific development, Bank of Baroda was trading higher after the government appointed PS Jayakumar to head the Bank.

On the global front, US markets ended higher on Friday following upbeat US economic data and as euro zone finance ministers agreed to launch a third bailout program for Greece. Asian markets were trading mostly in red on Monday dragged down by faltering Chinese stocks.

Back home, all the sectoral indices, barring PSU and Bankex, were trading in red led by Realty and Capital Goods. The market breadth on BSE was negative in the ratio of 741:1056 while 63 scrips remained unchanged. 

The BSE Sensex is currently trading at 27805.41, down by 261.90 points or 0.93% after trading in a range of 27739.13 and 28095.97. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.20%, while Small cap index lost 0.52%.

The gaining sectoral indices on the BSE were PSU up by 0.34%, Bankex up by 0.04%, while Realty down by 1.76%, Capital Goods down by 1.14%, Oil & Gas down by 1.10% and INFRA down by 1.09%, Auto down by 0.98% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.44%, Coal India up by 0.60% and Tata Steel up by 0.42%. On the flip side, Cipla down by 3.98%, Vedanta down by 3.73%, ONGC down by 2.48%, Hindalco down by 2.14% and Tata Motors down by 2.05% were the top losers.

Meanwhile, reflecting the sluggish global commodity prices, especially of petroleum products, rice, iron ore, oil meal and leather products, India's merchandise exports contracted for the eighth month running in July, registering a 10.3 per cent drop over last year. While exports came in at $23.1 billion, Imports too fell 10.3 per cent to $35.95 billion and the trade deficit widened to $12.8 billion in July from $10.8 billion in June. However, compared with July last year, when it was $ 14.27 billion, the deficit has narrowed. The trade deficit for April-July, 2015-16 was estimated at $45 billion compared with $47.5 billion in the period during April-July, 2014-15.

Exports during July, 2015 were valued at $23137.26 million, 10.30 per cent lower in Dollar terms than the level of $25792.68 million during July, 2014. In rupee term Exports were of Rs 147233.94 crore, 4.95 per cent lower in compared to Rs.154907.25 crore in the same period last year. Cumulative value of exports for the period April-July 2015-16 was US $ 89828.16 million  as against $105726.16 million, registering a negative growth of 15.04 per cent in Dollar terms and  in rupee term it stood at Rs 570549.18 crore compared to Rs 632793.07 crore, down by 9.84 per cent in the same period last year.

Imports during July, 2015 were valued at $35949.72 million in Dollar terms, lower by 10.28 per cent at $ 40068.01 million. In rupee term the Imports stood at Rs 228766.07 crore, lower by 4.94 per cent from Rs 240642.83 crore in July, 2014. Cumulative value of imports for the period April-July 2015-16 was $134866.28 million as against $ 153274.90 million, registering a negative growth of 12.01 per cent. In rupee terms inports valued at Rs 856596.37 crore compared to Rs 917413.18 crore, down by 6.63 per cent in the same period last year.

Oil imports during July, 2015 were valued at $9486.93 million, 34.91 per cent lower than oil imports valued at $14574.45 million in the corresponding period last year. Oil imports during April-July, 2015-16 were at $ 34144.90 million which was 37.91 per cent lower than the oil imports of $ 54991.04 million in the corresponding period last year. Non-oil imports during July, 2015 stood at $26462.79 million, 3.80 per cent higher than non-oil imports of $25493.56 million in July, 2014. Non-oil imports during April-July, 2015-16 were valued at $ 100721.38 million, 2.48 per cent higher than the level of such imports valued at $ 98283.86 million in April-July, 2014-15.

India's exports were hurt because of a stronger currency and going further may suffer in the coming months too on account of the impact of devaluation of the Chinese currency and with global demand not showing any signs of a pickup.

The CNX Nifty is currently trading at 8452.15, down by 66.40 points or 0.78% after trading in a range of 8428.05 and 8530.60. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Bank Of Baroda up by 11.71%, PNB up by 4.48%, SBI up by 2.53%, Tech Mahindra up by 1.44% and Asian Paints up by 0.75%. On the flip side, Cipla down by 4.00%, Vedanta down by 3.73%, ONGC down by 2.46%, Hindalco down by 2.20% and Zee Entertainment down by 2.06% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 223.3 points or 0.93% to 23,767.73, Taiwan Weighted decreased 63.71 points or 0.77% to 8,241.93, FTSE Bursa Malaysia KLCI decreased 26.14 points or 1.64% to 1,570.68, Straits Times decreased 22.46 points or 0.72% to 3,091.79, KOSPI Index decreased 7.38 points or 0.37% to 1,976.08 and Shanghai Composite decreased 4.73 points or 0.12% to 3,960.61.

On the flip side, Jakarta Composite increased 1.14 points or 0.02% to 4,585.39 and Nikkei 225 increased 70.01 points or 0.34% to 20,589.46