Markets trade with traction; IT stocks lead

Going from strength to strength, local equity markets added more ground on back of sustained buying activities by both funds and retail investors after data showed that Consumer Price Index (combined) eased to 14 month low of 4.2% in October compared with 4.39% in September and 5% a year ago, raising hopes that the RBI (Reserve Bank of India) may cut monetary rate in its forthcoming monetary policy review next month. Meanwhile, India’s merchandise exports stood at $ 23512.70 million, up by 9.59 percent in month of October 2016, as compared to $ 21456.11 million in October 2015, primarily due to healthy growth in shipments of jewellery and engineering products. However, the country's imports increased by 8.11 percent to $ 33.67 billion, leaving a trade deficit of $ 10.16 billion in the month under review. At present, Sensex and Nifty were trading above the crucial 26,400 and 8,100 levels respectively, with gains of around a percent.

On the global front, Asian markets were trading mostly in green tracking overnight gains on Wall Street, as investors awaited more policy details from U.S. president-elect Donald Trump. Back home,in scrip specific development, Tata Global Beverages was up by over 4 percent after the company's board replaced Cyrus Mistry as chairman by a majority vote. The BSE Sensex is currently trading at 26522.32, up by 217.69 points or 0.83% after trading in a range of 26326.89 and 26621.40. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.45%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were IT up by 2.57%, Auto up by 2.50%, TECK up by 2.26%, Power up by 1.02% and Realty up by 0.95%, while Consumer Durables down by 1.73%, Metal down by 0.65%, Capital Goods down by 0.13% and Bankex down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.24%, TCS up by 3.76%, Hero MotoCorp up by 3.08%, Infosys up by 2.76% and Maruti Suzuki up by 2.71%. On the flip side, Lupin down by 2.01%, Dr. Reddys Lab down by 1.96%, Tata Steel down by 1.21%, GAIL India down by 1.14% and Cipla down by 1.12% were the top losers.

Meanwhile, rising for the second month in a row, India’s merchandise exports stood at $ 23512.70 million, up by 9.59 percent in month of October 2016, as compared to $ 21456.11 million in October 2015, primarily due to healthy growth in shipments of jewellery and engineering products. In rupee term the exports during the month stood at Rs.156941.86 crore, which was 12.43% higher compared to Rs.139589.17 crore during October, 2015. Cumulative value of exports for the period April-October 2016-17 was $ 154913.20 million as against $ 155179.35 million in October 2015-16, registering a negative growth of 0.17 per cent in Dollar terms, while in rupee terms it stood at Rs.1036417.49 crore compared to Rs.998211.69 crore over the same period last year, showing a positive growth of 3.83 per cent.

The country's imports too increased during the month and stood at $ 33673.53 million, up by 8.11 per cent as compared to at $ 31148.33 million in October, 2015. Cumulative value of imports for the period April-October 2016-17 was $ 208083.15 million as against $ 233417.95 million registering a negative growth of 10.85 per cent in Dollar terms, while in rupee terms it stood at Rs.1392221.35 crore against Rs.1501290.90 crore over the same period last year down by 7.27 per cent.

The trade deficit for October 2016 declined by 32.04 per cent to $ 53169.95 million as compared to $78238.60 million in October 2015. The main export sectors which recorded positive growth in the month included engineering products which rose by 13.86 percent, gems and jewellery by 21.84 percent, petroleum by 7.24 percent and chemicals by 6.65 percent compared to the same month last year.

Oil imports during October, 2016 were valued at $ 7141.48 million, up 3.98 percent from oil imports of $ 6868.28 million in the corresponding period last year. Oil imports during April- October, 2016-17 were valued at $ 46438.65 million, 15.78 per cent lower than the oil imports of $ 55139.39 million in the corresponding period last year. Non-oil imports during October, 2016 were estimated at $ 26532.05 million, 9.28 per cent higher than non-oil imports of $ 24280.05 million in October, 2015. Non-oil imports during April-October 2016-17 were valued at $ 161644.50 million, 9.33 per cent lower than $ 178278.56 million in April- October, 2015-16. 

In September, exports grew by 4.62 percent to $ 22.9 billion on the back of expansion in shipments of engineering products and gems and jewellery, arresting the two-month fall. 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 8165.80, up by 57.35 points or 0.71% after trading in a range of 8100.50 and 8210.05. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 6.09%, Asian Paints up by 4.71%, TCS up by 3.74%, Tech Mahindra up by 3.25% and Hero MotoCorp up by 3.16%. On the flip side, Kotak Mahindra Bank down by 2.60%, Hindalco down by 2.32%, Dr. Reddys Lab down by 2.16%, Lupin down by 2.13% and Ambuja Cement down by 1.92% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 1.23 points or 0.04% to 3,208.22, KOSPI Index surged 12.12 points or 0.62% to 1,979.65, Taiwan Weighted was up by 31.19 points or 0.35% to 8,962.22, Jakarta Composite rose 106.23 points or 2.09% to 5,184.73, Hang Seng increased 143.11 points or 0.64% to 22,467.02 and Nikkei 225 was up by 194.06 points or 1.1% to 17,862.21. On the flip side, FTSE Bursa Malaysia KLCI decreased 2.2 points or 0.13% to 1,628.36.