Markets extend last session losses with negative trade in early deals

With a negative start Indian equity markets have extended their last session losses and are now trading down by around a quarter percent in morning deals. Both the Sensex and Nifty are below their psychological 24,500 and 7,450 levels. Sentiments were under pressure with report that the Indian exports falling for the 15th month in a row, dipped 5.66 percent in February to $ 20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid global demand. Moreover, foreign portfolio investors (FPIs) sold shares worth a net Rs 54.01 crore on Tuesday as per provisional data released by the stock exchanges that dampened the sentiment. However, Realty stocks were in limelight after the Lok Sabha approved the Real Estate (Regulation and Development) Bill, 2016. Oberoi Realty, DLF, HDIL, Prestige Estates and Sobha Developers are trading higher.

In the scrip specific development, Lux Industries zoomed over 11 per cent on the National Stock Exchange (NSE) after the company said its board will consider sub-division of equity shares of face value of Rs 10 each into a lower denomination.

On the global front, the US markets ended mostly lower on Tuesday, as investors cautiously awaited news from the US Federal Reserve's two-day policy meeting. Asian markets were trading mixed, as traders remained cautious ahead of Chinese Premier Li Keqiang’s address to government officials in Beijing.

Back home, traders were seen piling up position in Realty, FMCG, PSU, Oil & Gas and Capital Goods, while selling was witnessed in Consumer Durables, Auto, TECK, Metal and IT. The market breadth on BSE was negative in the ratio of 662:763, while 83 scrips remained unchanged.

The BSE Sensex is currently trading at 24470.54, down by 80.63 points or 0.33% after trading in a range of 24461.72 and 24565.30. There were 7 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was lower by 0.47%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Realty up by 0.76%, FMCG up by 0.20%, PSU up by 0.04%, Oil & Gas up by 0.04% and Capital Goods up by 0.03%, while Consumer Durables down by 0.81%, Auto down by 0.61%, TECK down by 0.27%, Metal down by 0.20% and IT down by 0.13% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 1.37%, ITC up by 1.01%, Hero MotoCorp up by 0.71%, Reliance Industries up by 0.20% and Tata Steel up by 0.15%. On the flip side, Asian Paints down by 1.87%, Dr. Reddys Lab down by 1.58%, HDFC down by 1.48%, Sun Pharma Inds. down by 1.31% and Bajaj Auto down by 1.23% were the top losers.

Meanwhile, the poor run of the Indian trade continued for the 15th month in a row, with exports dipping 5.66 percent in February to $ 20738.60 million, against $21983.43 million in February 2015, due to contraction in shipments of petroleum and engineering goods amid tepid global demand. However, the trade deficit, fell to near five-year low of $ 6541.82 million during February 2016, as compared to $ 6741.95 million in February 2015, as imports too slowed down. Imports declined by 5.03 percent to $ 27280.42 million last month. The trade deficit - difference between imports and exports - was the lowest since March 2011 when it was $ 5.6 billion.

As per the data released by the commerce ministry, exports during February, 2016 were valued at $ 20738.60 million, 5.66 per cent lower in Dollar terms compared to of $ 21983.43 million in February 2015, or Rs 141515.41 crore which was 3.77 per cent higher in Rupee terms than the level Rs 136379.94 crore during February, 2015. Cumulative value of exports for the period April-February 2015-16 was $ 238418.11 million, down by 16.73 percent as against $ 286305.92 million, while in rupee term it stood at Rs. 1556576.47 crore, down 10.86 per cent at Rs. 1746265.60 crore over the same period last year.

Imports during February, 2016 were valued at $ 27280.42 million, down 5.03 per cent in Dollar terms over the level of imports valued at $ 28725.38 million in February, 2015, while in rupee term the imports was of Rs 186155.30 crore 4.46 per cent higher from Rs. 178205.35 crore in same month last year. Cumulative value of imports for the period April-February 2015-16 was $ 351806.61 million as against $ 412604.70 million registering a negative growth of 14.74 per cent, while in rupee term it was Rs 2295116.34 crore compared to Rs 2515834.93 crore, down 8.77 per cent in Rupee terms over the same period last year.

Oil imports during February, 2016 were valued at $ 4767.69 million which was 21.92 per cent lower than oil imports valued at $ 6106.33 million in the corresponding period last year. Oil imports during April-February, 2015-16 were valued at $ 77862.30 million, down 40.52 per cent from $ 130906.99 million in the corresponding period last year. Non-oil imports during February, 2016 were estimated at $ 22512.73 million, down modestly by 0.47 per cent than non-oil imports of $ 22619.05 million in February, 2015. Non-oil imports during April-February, 2015-16 were valued at $ 273944.31 million, which was 2.75 per cent lower than the level of such imports valued at $ 281697.71 million in April-February, 2014-15.

Besides a global slowdown, the severe fall in exports is attributed to a decline in global commodity prices. The government had earlier set a $300 billion export target for 2015-16, but there was talk of revising it downwards to $260 billion, even then as much as $22 billion worth of goods need to be exported in March to meet the truncated target.

The CNX Nifty is currently trading at 7443.15, down by 17.45 points or 0.23% after trading in a range of 7441.45 and 7470.40. There were 20 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were BHEL up by 1.27%, Ambuja Cement up by 1.24%, BPCL up by 1.20%, Bank Of Baroda up by 1.19% and ITC up by 1.18%. On the flip side, Asian Paints down by 1.71%, Vedanta down by 1.53%, Dr. Reddys Lab down by 1.52%, Cipla down by 1.44% and Hindalco down by 1.37% were the top losers.

Asian markets were trading mixed, KOSPI Index increased 0.63 points or 0.03% to 1,970.60, FTSE Bursa Malaysia KLCI increased 1.66 points or 0.1% to 1,692.58, Shanghai Composite increased 4.02 points or 0.14% to 2,868.39 and Taiwan Weighted increased 70.31 points or 0.82% to 8,681.49.

On the flip side, Nikkei 225 decreased 115.9 points or 0.68% to 17,001.17, Hang Seng decreased 109.58 points or 0.54% to 20,179.19 and Jakarta Composite decreased 2.17 points or 0.04% to 4,847.61.