Markets continue to trade in upbeat mood; Nifty trades near 8,850 level

Maintaining the uptrend, local barometer gauges were trading in an upbeat mood with gains of over a percent, both Sensex and Nifty were trading above the psychologically crucial 28,750 and 8,800 levels respectively. Sustained buying activities by funds and retail investors also added to the optimistic sentiments.  Some support also came with report that Prime Minister Narendra Modi targeting to roll out the ambitious GST on April 1 next year, has directed that all steps required in this direction should be completed before that date. He has also said that GST Council would need to have intensive meetings to be able to make timely recommendations relating to its mandate. Further, appreciation in Indian rupee too supported the sentiments. The rupee strengthened by 14 paise to 66.88 against the US dollar due to dollar selling by banks and exporters as fears of an imminent US interest rate hike diminished and data showed India's trade deficit narrowed in August from last year. In scrip specific development, PNB climbed 3 percent after the state-run bank allotted 16.43 crore equity shares to the government.

On the global front, Asian markets were trading in green after disappointing U.S. economic data released overnight reduced worries about an interest rate hike by the Federal Reserve at its meeting next week. Back home, the BSE Sensex is currently trading at 28760.34, up by 347.45 points or 1.22% after trading in a range of 28520.17 and 28778.64. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.26%, while Small cap index added 1.09%.

The top gaining sectoral indices on the BSE were Auto up by 1.70%, Oil & Gas up by 1.70%, Bankex up by 1.67%, FMCG up by 1.61% and Realty up by 1.51%.

The top gainers on the Sensex were Axis Bank up by 3.22%, Bajaj Auto up by 2.75%, Hero MotoCorp up by 2.66%, Adani Ports &Special up by 2.54% and Maruti Suzuki up by 2.46%. On the flip side, TCS down by 0.20%, HDFC down by 0.08% and Infosys down by 0.03% were the top losers.

Meanwhile, falling for the second month in a row, India’s merchandise exports stood at $ 21518.60 million, down by 0.3 per cent in month of August 2016, as compared to $21582.67 million in August 2015, primarily due to a decline in shipments of products like petroleum and leather. However, in rupee term the exports during the month stood at Rs 144044.67 crore, which was 2.56 per cent higher compared to Rs140443.43 crore during August,2015. Cumulative value of exports for the period April-August 2016-17 was $ 108519.94 million as against $ 111853.88 million registering a negative growth of 2.98 per cent, while in rupee terms it stood at Rs 726776.04 crore compared to Rs 713808.46 crore over the same period last year, showing a positive growth of 1.82 per cent.

The country's imports too declined during the month and stood at $ 29192.74 million, down by 14.09 percent as compared to $ 33981.73 million in August 2015. In rupee term too the Imports declined to Rs 195415.03 crore  from Rs 221126.92 crore in August,2015, mainly due to fall in global crude oil prices. Cumulative value of imports for the period April-August 2016-17 was $ 143189.49 million as against $ 170234.30 million registering a negative growth of 15.89 per cent, while in rupee terms it stood at Rs.959102.25 crore against Rs 1086515.26 crore, over the same period last year down by 11.73 per cent.

Oil imports during August, 2016 were valued at $ 6743.85 million, down 8.47 percent from oil imports of $ 7367.75 million in the corresponding period last year. Oil imports during April-August, 2016-17 were valued at $ 32410.81 million, 22.08 per cent lower than the oil imports of $ 41593.53 million in the corresponding period last year. Non-oil imports during August, 2016 were estimated at $ 22448.89 million, 15.65 per cent lower than non-oil imports of $ 26613.98 million in August, 2015. Non-oil imports during April-August 2016-17 were valued at $ 110778.68 million, 13.89 per cent lower than $ 128640.77 million in April-August, 2015-16.

The trade deficit for August 2016 declined by 38 per cent to $7674.14 million as compared to $12399.06 million in August 2015, the lowest in last three months and mainly due to lower import of gold. The trade gap however has narrowed to $7674.14 for the month this year from $ 12399.06 million in the corresponding period of last year.

The main export sectors which recorded negative growth in the month include petroleum (14%), leather (7.82%) and chemicals (5%). Further, dip in gold imports also helped in bridging the trade gap. Exports were in negative zone between December 2014 and May 2016 due to weak global demand and slide in oil prices. Shipments witnessed growth only in June this year thereafter again entered into negative zone in July.

The CNX Nifty is currently trading at 8842.40, up by 99.85 points or 1.14% after trading in a range of 8780.25 and 8847.65. There were 46 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.24%, Bajaj Auto up by 2.81%, Hero MotoCorp up by 2.66%, Grasim Industries up by 2.49% and Adani Ports &Special up by 2.47%. On the flip side, HDFC down by 0.24%, Idea Cellular down by 0.18%, HCL Tech. down by 0.17%, TCS down by 0.16% and Infosys down by 0.12% were the top losers.

The Asian markets were trading in green, Jakarta Composite increased 29.86 points or 0.57% to 5,295.68 and Nikkei 225 was up by 114.28 points or 0.7% to 16,519.29. Shanghai Stock Exchange, Hong Kong Stock Exchange, Malaysia Stock Exchange, Seoul Stock Exchange and Taiwan Stock Exchange are closed on account of National holiday.