Benchmarks trade marginally lower in early deals

Indian equity benchmarks have made a soft start and are trading marginally in red in early deals on Monday, as traders remained concerned over geopolitical tensions in North Korea. Sentiments also remained dampened on a Reserve Bank of India report that credit growth plunged to a whopping six-decade low of 5.08 percent in the financial year 2016-17, as against 10.7 percent a year ago. However, losses remained capped as some support came with growth in exports of goods from India reaching its peak in the last month of fiscal 2016-17 with a 27.59 per cent increase, year-on-year, to $29.23 billion in March 2017. After two continuous years of decline, exports in April-March 2016-17 posted an increase of 4.71 per cent to $274.64 billion compared to the previous fiscal.

Global cues too remained somber with most of the Asian counters trading in red at this point of time. The Japanese market was trading with marginal cut after yen strengthened at a five-month high amid persistent concern over the situation with North Korea. The US markets continued their weakness in the last session for the third straight day, following comments by President Donald Trump, who told the Wall Street Journal he thinks the US dollar 'is getting too strong.'

Back home, traders remained on sidelines ahead of wholesale price-based inflation for March to be announced later in the day. Moody’s Investors Service has said that India’s credit profile would improve if it follows the fiscal discipline path and set up a fiscal council as recommended by the FRBM panel. The market breadth indicating the overall health of the market was evenly divided, with 1051 shares gaining and 1091 shares declining, while a total of 108 shares were unchanged.

The BSE Sensex is currently trading at 29428.88, down by 32.57 points or 0.11% after trading in a range of 29363.28 and 29490.26. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.02%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Realty up by 1.23%, Oil & Gas up by 0.53%, Utilities up by 0.51%, Consumer Durables up by 0.39% and Energy was up by 0.39%, while Telecom down by 0.65%, FMCG down by 0.58%, Metal down by 0.57%, TECK down by 0.53% and IT was down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 2.33%, Adani Ports up by 1.33%, Power Grid up by 1.20%, HDFC up by 1.03% and GAIL India was up by 0.92%. On the flip side, Sun Pharma down by 2.30%, Asian Paints down by 1.48%, ITC down by 0.98%, NTPC down by 0.91% and Mahindra & Mahindra was down by 0.84% were the top losers.

Meanwhile, extending the growth trend for seventh straight month, India’s Merchandise export jumped over five year high of 27.59% to $29.23 billion in March 2017, on account of a rebound in the outbound shipments of engineering goods, petroleum products and garments. However, the trade deficit in March doubled to a four-month high of $10.43 billion compared to $4.39 billion in the same month last fiscal, mainly due to surge in imports of gold. During April-March 2016-17, trade deficit was $105.72 billion as against $118.71 billion in the same period last year.

As per the data released by the Commerce Ministry, exports registered a growth of 27.59% to $29.23 billion as compared to $22.91 billion in March 2016. In Rupee term the exports was higher by 25.41% to Rs 192571.13 crore as compared to Rs 153558.85 crore in March 2016. Cumulative value of exports for the period April-March 2016-17 was $274.64 billion as against $262.29 billion, registering a positive growth of 4.71% over the same period last year. In Rupee term it was up by 7.28% to Rs 1841314.39 crore from Rs 1716377.99 crore.

Non-petroleum and Non Gems & Jewellery exports in March 2017 were valued at $21.42 billion as against $17.07 billion in March 2016, an increase of 25.5%. Non-petroleum and Non Gems and Jewellery exports during April - March 2016-17 were valued at $200.55 billion as compared to $192.42 billion for the corresponding period in 2016, an increase of 4.2%.

Imports during March 2017, increased by 45.25% to $39.66 billion as compared to $27.31 billion in March 2016, while in Rupee terms it was 42.77% higher to Rs 261327.71 crore from Rs 183038.67 crore in March 2016. However, cumulative value of imports for the period April-March 2016-17 was $ 380.36 billion as against $381.00 billion, registering a negative growth of 0.17% over the same period last year. In Rupee term the cumulative imports was of Rs 2550926.19 crore, up by 2.43% from Rs 2490298.03 crore in the same period last year.

Oil imports during March, 2017 were valued at $9.71 billion which was 101.43% higher than oil imports valued at $4.82 billion in March 2016. Oil imports during April-March, 2016-17 were valued at $ 86.45 billion which was 4.24% higher than the oil imports of $ 82.94 billion in the corresponding period last year.

Non-oil imports during March, 2017 were estimated at $29.95 billion which was 33.21% higher than non-oil imports of $22.48 billion in March, 2016. Non-oil imports during April-March 2016-17 were valued at $293.90 billion which was 1.39% lower than the level of such imports valued at $298.06 billion in April-March, 2015-16.

The CNX Nifty is currently trading at 9134.30, down by 16.50 points or 0.18% after trading in a range of 9120.25 and 9160.00. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 2.43%, Adani Ports up by 1.34%, Indian Oil Corporation up by 1.05%, HDFC up by 1.02% and Grasim Industries was up by 0.99%. On the flip side, Bharti Infratel down by 3.10%, Sun Pharma down by 2.37%, Asian Paints down by 1.49%, Hindalco down by 1.39% and Ambuja Cement was down by 1.33% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 51.84 points or 0.21% to 24,261.66, Shanghai Composite declined 42.86 points or 1.32% to 3,203.21, Taiwan Weighted slipped 19.53 points or 0.2% to 9,713.40, Jakarta Composite shed 18.04 points or 0.32% to 5,598.50 and Nikkei 225 was down by 4.42 points or 0.02% to 18,331.21.

On the flip side, FTSE Bursa Malaysia KLCI increased 3.73 points or 0.22% to 1,734.72 and KOSPI Index was up by 9.96 points or 0.47% to 2,144.84.