Markets continue to trade weak amid contraction in exports

Indian markets continue to reel in red, the global cues are keeping the bourses under check with oil plunging to new lows after Iran becoming free to sell as much oil as it wants to whomever it likes at whatever price. Though, the Chinese market has recovered and was modestly in green after PBOC said to impose reserve ratio on offshore bank yuan accounts. However, the mood remained somber at domestic front and the regular attempt of recovery that was seen till late morning has vanished with benchmark indices losing around half a percent on reports that Exports contracted for 13th month in a row in December 2015 as outward shipments shrank 14.75 per cent to $22.2 billion amid a global demand slowdown. Trade deficit during the month under review widened to $11.6 billion as against $9.17 billion in December 2014.There is no supportive cues and markets are finding it difficult to retain their position amid continued selling, not only the benchmarks but the broader markets too are suffering in the global rout.

The BSE Sensex is currently trading at 24362.32, down by 92.72 points or 0.38% after trading in a range of 24285.23 and 24524.85. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices too were trading in red; the BSE Mid cap index was down by 1.39%, while Small cap index plunged by 2.77%.

The gaining sectoral indices on the BSE were Metal up by 0.69%, IT up by 0.07% and Bankex up by 0.04%, while Oil & Gas down by 1.45%, Capital Goods down by 1.42%, Realty down by 1.32%, Auto down by 1.30%, PSU down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were BHEL up by 4.40%, Tata Steel up by 2.72%, Axis Bank up by 2.10%, GAIL India up by 1.07% and TCS up by 0.91%. On the flip side, Bajaj Auto down by 3.25%, Dr. Reddys Lab down by 1.99%, ONGC down by 1.96%, Bharti Airtel down by 1.52% and Cipla down by 1.42% were the top losers.

Meanwhile,  Niti Aayog member Ramesh Chand has said that the India’s farm sector crisis is expected to deepen further in the financial year 2016-17, amid fall in the global commodities markets. He stated that 'At present, the global market is not behaving in a normal manner. As a result, the crisis in agriculture sector is deepening’.

Ramesh Chand further said that from 2005 till 2012 Indian farmers benefited from rising global food prices, but the situation has worsened in the last two years where agriculture is facing serious problems. He said that the country has seen drought and unseasonal rains and added that despite lower production the prices are not being push up. While Emphasizing the need to train farmers with additional skills in order to get jobs outside farming and existing programmes like Start Up India to tide over the agricultural crisis, Chand pitched for more private sector involvement, reforms in land lease policy and easy market access. Besides, he said that there is a need to provide some income to farmers outside agricultural sectors, while suggesting the key reforms to sustain farm growth and farmers' welfare. He also emphasized on shedding the socialist mindset and involving the private sector in all aspects of agriculture.

On the credit system, Chand said that 50 per cent of the farmers still depend on private lenders. In order to bring them into formal banking credit system, he suggested launching of a 'kisan dhan yojana' to be blend with the existing 'Jhan Dhan Yojana'.

The CNX Nifty is currently trading at 7415.00, down by 22.80 points or 0.31% after trading in a range of 7383.35 and 7463.65. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were BHEL up by 4.66% and Tata Steel up by 2.87% and Bank Of Baroda up by 2.50% and Tata Power up by 2.35% and Axis Bank up by 1.88%. On the flip side, Cairn India down by 4.56%, Bajaj Auto down by 2.76%, BPCL down by 2.30%, ONGC down by 1.98% and Dr. Reddys Lab down by 1.84% were the top losers.

The Asian markets were trading mostly in red, barring Shanghai Composite, which was up by 15.19 points or 0.52% to 2,916.16 and Taiwan Weighted which was higher by 49.17 points or 0.63% to 7,811.18.

On the other hand, Hang Seng declined by 203.14 points or 1.04% to 19,317.63, Nikkei 225 declined by 191.54 points or 1.12% to 16,955.57, Jakarta Composite lost 39.56 points or 0.87% to 4,484.41, FTSE Bursa Malaysia KLCI was down by 5.61 points or 0.34% to 1,622.94 and KOSPI Index was marginally down by 0.42 points or 0.02% to 1,878.45.