Benchmarks continue to trade firm in early noon session

Indian equity benchmarks continued to trade firm in early noon session led by gains in frontline blue chip stocks such as GAIL, ONGC and Cairn among others. Sentiment perked up with Finance Minister Arun Jaitley making a fresh bid to end the deadlock on Goods and Services Tax (GST) bill as he reached out to main opposition Congress. Besides, a firm trend in other Asian bourse and overnight gains in the US and European markets ahead of the outcome of a Federal Reserve meeting which is likely to see a long-awaited interest rate rise, too was supporting the markets. Meanwhile, share price of gas distributing companies GAIL, Indraprastha Gas (IGL), Petronet LNG and Gujarat Gas rose in the noon trade, as these companies are seen as key beneficiaries from government and judiciary’s focus on pollution. 

On the global front, Asian markets were trading in green, as Wall Street rose before a likely hike in US interest rates, while the dollar held to large gains made as treasury yields picked up. Back home, both the sensex and Nifty were trading above their crucial 25,450 and 7,750 levels, respectively. The broader markets were outperforming the benchmark indices. The BSE Mid-cap index jumped 0.90 percent and the small-cap index advanced 0.72 percent. In scrip specific development, share of Arcotech was trading higher after the company received an order worth Rs 268 crore from India Government Mint (IGM), Mumbai. 
 
The BSE Sensex is currently trading at 25494.75, up by 174.31 points or 0.69% after trading in a range of 25372.47 and 25523.98. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.89%, while Small cap index up by 0.72%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.21%, Realty up by 1.83%, Power up by 1.70%, PSU up by 1.50% and Bankex up by 1.22%, while Consumer Durables down by 0.45%, FMCG down by 0.25% and Auto down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 4.14%, Bharti Airtel up by 3.15%, ONGC up by 2.94%, NTPC up by 2.13% and ICICI Bank up by 2.09%. On the flip side, Mahindra & Mahindra down by 4.49%, ITC down by 0.70%, Wipro down by 0.55%, Coal India down by 0.19% and Hindustan Unilever down by 0.02% were the top losers.

Meanwhile, contracting for the twelve month in a row, India’s exports plunged 24 percent in November to $20 million. The significant fall in exports is attributed to weak global demand, amid a tepid global economic recovery. On the positive side, imports too declined by over 30 per cent to $29.7 billion from $42.7 billion a year ago, led by low crude oil prices and subdued imports of gold, coal and fertilizers. This has helped shrank the trade deficit to $9.78 billion in November as compared with $16.2 billion in November 2014. The trade deficit for April-November, 2015-16 was estimated at $87543.75 million which was lower than the deficit of $102506.23 million during April-November, 2014-15.

As per the data released by the Commerce Ministry, Exports during November, 2015 were valued at $ 20014.22 million in Dollar terms, 24.43 per cent lower than the level of $26485.71 million during November, 2014. In Rupee terms the exports stood at Rs. 132328.24 crore for the month against Rs. 163427.94 crore in the same month last year, showing a decline of 19.03 per cent. Cumulative value of exports for the period April- November 2015-16 was $174306.46 million as against $213774.45 million, registering a negative growth of 18.46 per cent in Dollar terms and stood at Rs 1124831.81 crore in Rupee term down by 13.07 per cent of Rs 1293967.32 crore in the same period last year.

Meanwhile, Imports during November, 2015 were valued at $29795.91 million in dollar terms, 30.26 per cent lower over the level of imports valued at $42722.49 million in November, 2014. In rupee terms imports were valued at Rs 197001.90 crore, which was 25.27 per cent lower than Rs 263615.72 crore in the same period last year. Cumulative value of imports for the period April-November 2015-16 in Dollar terms was $261850.21 million, as against $316280.68 million, registering a negative growth of 17.21 per cent in Dollar terms. In rupee terms the imports for the period April-November 2015-16 stood at Rs 1689681.20 crore, down by 11.77 per cent as compared to Rs 1915128.52 crore in the same period last year.

Oil imports which accounts for 31 percent of the total imports dropped by 44.99 per cent during November, 2015 at $6436.39 million than oil imports valued at $11699.82 million in the corresponding period last year. Oil imports during April-November, 2015-16 were valued at $61411.46 million which was 42.39 per cent lower than the oil imports of $106596.04 million in the corresponding period last year. Meanwhile, Non-oil imports during November, 2015 were estimated at $23359.52 million which was 24.7 per cent lower than the non-oil imports of $31022.67 million in November, 2014. Non-oil imports during April-November, 2015-16 were valued at $200438.75 million which was 4.41 per cent lower than the level of such imports valued at $209684.64 million in April-November, 2014-15.

The last time Indian exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27 percent. Sluggish global demand, an overvalued rupee, declining imports from China and devaluation of the Chinese currency have deterred India's exports from growing, despite the commerce department expanding export incentive schemes for various products and markets.

The CNX Nifty is currently trading at 7751.65, up by 50.75 points or 0.66% after trading in a range of 7715.75 and 7764.05. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 4.90%, GAIL India up by 3.67%, ONGC up by 3.08%, Bharti Airtel up by 2.89% and Idea Cellular up by 2.46%. On the flip side, Mahindra & Mahindra down by 4.46%, Asian Paints down by 1.80%, ITC down by 0.79%, Wipro down by 0.54% and Coal India down by 0.27% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 10.84 points or 0.67% to 1,633.68, Shanghai Composite increased 14.44 points or 0.41% to 3,524.80, KOSPI Index increased 38.25 points or 1.98% to 1,971.22, Jakarta Composite increased 45.29 points or 1.03% to 4,454.46, Taiwan Weighted increased 124.14 points or 1.54% to 8,197.49, Hang Seng increased 454.12 points or 2.13% to 21,728.49 and Nikkei 225 increased 470.58 points or 2.53% to 19,036.48.