Benchmarks off day’s lows; Nifty hold 7,800 mark

Indian equity benchmarks have trimmed some of their losses but still trading with a cut of over half a percent in noon deals. Sentiments remained dampened since morning with a report that exports of 17 sectors, over half of the 30 sectors including petroleum products, textiles, man-made yarn and fabrics, engineering and leather, closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand. Poor India's manufacturing sector growth too weighed down sentiments.

All the Asian equity indices were trading in red at this point of time after the yen strengthened past 107 per dollar, weighing on the earnings outlook for Japanese exporters, while data in China suggested the country’s central bank may have less need to loosen monetary policy. Back home, depreciation in Indian rupee too dampening sentiments. Rupee weakened by 8 paise to 66.41 against the dollar in noon deals at the Inter-bank Foreign Exchange market on increased demand for the American currency from importers and banks. Public sector oil marketing companies (OMCs) were trading in red despite Indian Oil Corporation (IOC) announcing an increase in the price of petrol and diesel with effect from the midnight of April 30, 2016.

The BSE Sensex is currently trading at 25472.78, down by 133.84 points or 0.52% after trading in a range of 25341.14 and 25565.44. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.99%, while Small cap index up by 0.19%.

The top gaining sectoral indices on the BSE were Basic Materials up by 1.30%, Consumer Durables up by 1.27%, Metal up by 1.25%, Oil & Gas up by 0.33% and Auto up by 0.30%, while Bankex down by 0.91%, IT down by 0.58%, TECK down by 0.56%, Realty down by 0.41% and FMCG down by 0.38% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 0.97%, Lupin up by 0.89%, GAIL India up by 0.82%, Maruti Suzuki up by 0.58% and Mahindra & Mahindra up by 0.54%. On the flip side, ICICI Bank down by 3.91%, Dr. Reddys Lab down by 2.08%, Adani Ports & Special down by 1.89%, Bharti Airtel down by 1.32% and SBI down by 1.22% were the top losers.

Meanwhile, with an aim to step up engagement in hydrocarbon sector with Iran, India has conveyed to the Persian Gulf nation that it is ready to clear nearly $6.5 billion oil import dues at the earliest, provided there is clarity on the payment channel. There has been a series of discussions at various levels, both in Iran and India, and both sides are confident of resolving the matter soon. Refiners like Essar Oil and Mangalore Refinery and Petrochemicals (MPRL) owe nearly $6.5 billion in dues to Iran.

Following lifting of sanctions against it in January under a historic nuclear deal, Iran had terminated a three-year-old system with India of getting paid for half of the oil dues in rupees and has been insisting on being paid in Euros for the oil it sells to Indian refiners. Though Western sanctions against Iran were lifted, problems persist in banking channels due to which regular transactions were not possible yet.

Since February 2013, Indian refiners like Essar Oil and MRPL have been paying 45 per cent of their import bill in rupees to UCO Bank account of Iranian Oil Company. The remaining has been accumulating, pending finalisation of a payment mechanism.

Recently, in order to make up for the foreign exchange losses incurred, Iran had asked Indian refiners like Essar Oil and MRPL to pay interest rate of Libor-plus 0.75 per cent (London Inter-Bank Offered Rate) on the $6.5 billion they owe it in past oil dues.

The CNX Nifty is currently trading at 7809.15, down by 40.65 points or 0.52% after trading in a range of 7777.30 and 7829.80. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.94%, Aurobindo Pharma up by 1.08%, Cipla up by 0.89%, GAIL India up by 0.86% and Lupin up by 0.81%. On the flip side, ICICI Bank down by 4.28%, Adani Ports & Special down by 2.02%, Dr. Reddys Lab down by 1.96%, Tech Mahindra down by 1.80% and ACC down by 1.31% were the top losers.

The Asian markets were trading in red; Nikkei 225 declined 518.67 points or 3.11% to 16,147.38; Jakarta Composite decreased 30.86 points or 0.64% to 4,807.73, KOSPI Index fell 16 points or 0.8% to 1,978.15.