Benchmarks trade in fine fettle in early deals

After making a firm start, Indian equity benchmarks are trading in fine fettle in early deals with frontline gauges recapturing their crucial 28,000 (Sensex) and 8,550 (Nifty) levels. Sentiments remained optimistic on report that exports snapped18-month downward spiral and rose by 1.27% in June to $22.28 billion. Rising exports and decline in imports also brought down the trade deficit in June to $8.11 billion as against $10.82 billion in the year-ago month. Better-than-expected first quarter earnings from index heavyweights Reliance Industries too aided sentiments. The company reported a surge of 18.51% in its net profit at Rs 7548 crore for the quarter ended June 30, 2016 as compared to Rs 6369 crore for the same quarter in the previous year.

On the global front, Asian markets were exhibiting mixed trend at this point of time as the geopolitical developments in Turkey weighed on investor sentiment. Meanwhile, financial markets are closed in Japan on account of a holiday.

The BSE Sensex is currently trading at 28005.80, up by 169.30 points or 0.61% after trading in a range of 27918.48 and 28013.50. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index gained 0.65%.

The top gaining sectoral indices on the BSE were Auto up by 1.29%, Realty up by 1.24%, Industrials up by 0.94%, Capital Goods up by 0.77% and Bankex up by 0.74%, while Consumer Durables down by 0.53% was the lone losing index on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.98%, Tata Motors up by 1.97%, Asian Paints up by 1.78%, Reliance Industries up by 1.60% and Axis Bank up by 1.51%. On the flip side, ONGC down by 1.13%, Wipro down by 0.90%, Cipla down by 0.86%, NTPC down by 0.67% and Adani Ports &Special down by 0.59% were the top losers.

Meanwhile, snapping its 18 months declining trend, India’s merchandise exports finally posted a modest growth in June, raising hopes that the worst may be over. India's exports registered 1.27 per cent growth to $22.57 billion, against $22.28 billion in the same month a year before. Imports too declined by 7.33% to $30.6 billion in June, 2016 from $33.1 billion in June 2015. Rising exports and decline in imports has also brought down the trade deficit in June to $8.11 billion as against $10.82 billion in the year-ago month. The trade deficit for April-June, 2016-17 was estimated at $19.23 billion which was lower than the deficit of $32.225 billion during April-June, 2015-16.

As per the data released by the Commerce Ministry, exports during June, 2016 were valued at $22572.30 million, which was 1.27 per cent higher in Dollar terms than the level of $22289.43 million and in rupee terms exports stood at Rs 151904.56  crore, 6.72 per cent higher compared to Rs 142341.88 crore during June, 2015.Cumulative value of exports for the period April-June 2016-17 was $65311.77 million, as against $66690.90 million, registering a negative growth of 2.07 per cent, while in rupee terms it stood at  Rs 436960.98 crore compared to Rs 423315.24 crore, reporting a positive growth of 3.22 per cent over the same period last year.

Of the 30 major items tracked by the commerce ministry as many as 24 including engineering, electronic goods, drugs & pharmaceuticals and carpets & handicrafts, showed growth. However, petroleum, gems & jewellery and apparel exports continued to show a decline in June.

Meanwhile, Imports during June, 2016 were valued at $30688.54 million in dollar terms, 7.33 per cent lower over the level of imports valued at $33116.55 million in same period last year. In rupee terms imports were valued at Rs 206524.39 crore, 2.35 per cent lower than Rs 211484.61 crore during June 2015. Cumulative value of imports for the period April-June 2016-17 in Dollar terms was $84545.78 million, as against $98916.56 million, registering a negative growth of 14.53 per cent. In rupee terms the imports for the period April-June 2016-17 stood at Rs 565754.29 crore, down by 9.89 per cent compared to Rs 627830.30 crore in the same period last year.

Imports of petroleum, crude and related products were down 16.42 per cent in June, while that of coal, coke and briquettes shrunk by about 13 per cent. In value terms, imports of fertilisers too were down by 22.77 per cent at $712.36 million.

Oil imports which accounts for 31 percent of the total imports, dropped by 16.42 per cent during June, 2016 at $7252.11 million than oil imports valued at $8676.38 million in the corresponding period last year. Oil imports during April-June, 2016-17 were valued at $18846.62 million which was 23.57 per cent lower than the oil imports of $24657.97 million in the corresponding period last year. Non-oil imports during June, 2016 were estimated at $23436.43 million, which was 4.11 per cent lower than non-oil imports of $24440.17 million in June, 2015. Non-oil imports during April- June 2016-17 were valued at $65699.16 million which was 11.53 per cent lower than the level of such imports valued at $74258.59 million  in April- June, 2015-16.

The CNX Nifty is currently trading at 8579.45, up by 38.05 points or 0.45% after trading in a range of 8558.45 and 8583.95. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 1.85%, Maruti Suzuki up by 1.82%, Tata Motors up by 1.69%, Reliance Industries up by 1.63% and Axis Bank up by 1.46%. On the flip side, Aurobindo Pharma down by 1.38%, ONGC down by 1.19%, Wipro down by 1.14%, Adani Ports & Special down by 0.91% and Cipla down by 0.90% were the top losers.

Asian markets were trading mixed; Jakarta Composite increased 11.71 points or 0.23% to 5,121.88, Hang Seng gained 34.71 points or 0.16% to 21,693.96 and Taiwan Weighted was up by 42.67 points or 0.48% to 8,992.52.On the flip side, Shanghai Composite decreased 3.36 points or 0.11% to 3,050.93, FTSE Bursa Malaysia KLCI shed 3.03 points or 0.18% to 1,665.37 and KOSPI Index was down by 2.35 points or 0.12% to 2,014.91.