Markets continue to trade lower in early noon session

Indian equity benchmarks continued to trade lower in early noon session on account of selling in the blue chip counters. Sentiment remained under pressure with the report of India’s merchandise exports extending its decline for the fourteen months in row, plunged by 13.6 per cent in January 2016 at $21.07 billion as against $24.39 billion in January last year. The significant fall in exports is attributed to weak global demand and steep fall in shipment of petroleum products and engineering goods. Apart from this, the decline was spread across sectors such as readymade garments, leather products, chemicals, rice and cereals and marine products. Depreciation in the rupee too dampened the sentiment. The rupee was trading lower by 24 paise at 68.30 against the American currency in early trade today at the Interbank Foreign Exchange market as the dollar firmed up overseas. Meanwhile, aviation stocks were trading lower after international crude oil prices jumped.

On the global front, Asian markets were trading mostly in green, as a combination of stabilising Chinese markets, a rebound in oil prices and solid US consumption data drove investors to look for bargains after last week's rout. Back home, both the Sensex and Nifty were trading below their crucial 23,500 and 7,150 levels respectively. In scrip specific development, shares of United Breweries (Holdings) were trading down after the Punjab National Bank has declared the company as a ‘wilful defaulter’. Market breadth was negative with 1419 losers and 816 gainers on the BSE.

The BSE Sensex is currently trading at 23463.77, down by 90.35 points or 0.38% after trading in a range of 23405.75 and 23692.08. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.27%, while Small cap index down by 0.59%.

The gaining sectoral index on the BSE was Power up by 0.74%, while Capital Goods down by 1.39%, TECK down by 0.69%, FMCG down by 0.67%, Bankex down by 0.66% and IT down by 0.63% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 5.75%, NTPC up by 3.84%, Dr. Reddys Lab up by 1.12%, Bharti Airtel up by 0.99% and ONGC up by 0.95%. On the flip side, Larsen & Toubro down by 2.06%, Sun Pharma down by 2.03%, SBI down by 1.52%, Asian Paints down by 1.31% and Mahindra & Mahindra down by 0.96% were the top losers.

Meanwhile, amid weak global commodity prices, India’s merchandise exports extending its decline for the fourteen months in row, plunged by 13.6 per cent in January 2016 at $21.07 billion as against $24.39 billion in January last year. The significant fall in exports is attributed to weak global demand and steep fall in shipment of petroleum products and engineering goods. Apart from this, the decline was spread across sectors such as readymade garments, leather products, chemicals, rice and cereals and marine products. The last time Indian exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27 percent.

Imports too declined by 11 percent to $28.71 billion for January, thus narrowing the trade gap to $7.63 billion from $7.87 billion recorded in the same month of 2015. The trade deficit during April-January 2015-16 too has narrowed to $106846.68 million as against $119556.83 million in the same period last fiscal.

As per the data released by the Commerce Ministry, Indian exports during January, 2016 were valued at $21075.57 million in dollar terms, 13.60 per cent lower than the level of $24393.58 million during January, 2015. In rupee terms the exports stood at Rs 141738.07 crore for the month against Rs. 151791.26 crore in the same month last year, showing a decline of 6.62 per cent. Cumulative value of exports for the period April- January 2015-16 was $217679.51 million as against $264322.49 million, registering a negative growth of 17.65 per cent in dollar terms. In rupee terms it stood at Rs 1415061.06 crore down by 12.10 per cent against Rs 1609885.66 crore in the same period last year.

Meanwhile, imports during January, 2016 were valued at $28714.50 million in dollar terms, 11.01 per cent lower over the level of imports valued at $32265.37 million in January, 2015. In rupee terms imports were valued at Rs 193111.64 crore, 3.82 per cent lower than Rs 200774.18 crore in the same period last year. Cumulative value of imports for the period April-January 2015-16 in dollar terms was $324526.19 million, as against $383879.32 million, registering a negative growth of 15.46 per cent. In rupee terms, the imports for the period April- January 2015-16 stood at Rs 2108961.04 crore, down by 9.78 per cent as compared to Rs 2337629.58 crore in the same period last year.

Oil imports which accounts for 31 percent of the total imports, dropped by 39.01 per cent during January 2016 at $5026.41 million against $8241.18 million in the corresponding period last year. Oil imports during April-January, 2015-16 were valued at $73094.61 million which was 41.43 per cent lower than the oil imports of $124800.66 million in the corresponding period last year. Non-oil imports during January, 2016 were estimated at $23688.09 million which was 1.40 per cent lower than non-oil imports of $24024.19 million in January, 2015. Non-oil imports during April-January, 2015-16 were valued at $251431.58 million which was 2.95 per cent lower than the level of such imports valued at $259078.66 million in April-January, 2014-15.

Reserve Bank of India governor Raghuram Rajan has resisted pressure from exporters and policy makers to devalue the currency to support exports. Finance minister Arun Jaitley, who will present his annual budget on February 29, could announce incentives to boost exports, as India’s textile sector faces competition from Bangladesh and Vietnam.

The CNX Nifty is currently trading at 7122.30, down by 40.65 points or 0.57% after trading in a range of 7110.90 and 7204.65. There were 15 stocks advancing against 34 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were Adani Ports &Special up by 5.02%, NTPC up by 4.09%, Cairn India up by 1.00%, Dr. Reddys Lab up by 0.98% and Tata Power up by 0.92%. On the flip side, Bank of Baroda down by 3.80%, BPCL down by 2.70%, Sun Pharma down by 2.52%, Vedanta down by 2.40% and Larsen & Toubro down by 2.35% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 11.68 points or 0.71% to 1,661.64, KOSPI Index increased 26.24 points or 1.41% to 1,888.44, Shanghai Composite increased 75.95 points or 2.77% to 2,822.14, Taiwan Weighted increased 145.56 points or 1.8% to 8,212.07, Nikkei 225 increased 161.44 points or 1.01% to 16,184.02 and Hang Seng increased 293.49 points or 1.55% to 19,211.63, while Jakarta Composite decreased 11.68 points or 0.25% to 4,729.04.