Benchmarks trim gains in late morning session

Indian equity benchmarks erased some gains but continued their firm trade in late morning session on account of buying in frontline counters. The benchmark indices -- BSE Sensex hit fresh all-time intra-day high of 30,518.78 and the NSE index Nifty touched a new peak of 9,492.60 in early hour of trade. The rupee opened on a flat note with negative bias against dollar on Monday. Traders were taking some support with report that India’s exports jumped 19.8% to $24.6 billion in April, on the back of strong performance from petroleum, engineering and textiles sectors. However, trade deficit also witnessed about threefold increase to $13.2 billion, due to goods imports in April recording a historic 49.07% year-on-year growth to $37.9 billion - following a surge in gold, oil, coal, chemicals, pearls and precious stones, machinery, transport equipment and electronics imports. Meanwhile, according to a private opinion poll more than 60% of Indians believe that the Narendra Modi government has either met or exceeded their expectations. A greater proportion, 69%, said they feel optimistic about their future as well as that of their families. The government is on track to deliver on promises made in its manifesto, according to 59% of respondents in the survey that had 40,000 participants, who cast more than 200,000 votes on various subjects across 200 cities. Traders were seen piling position in Telecom, TECK and IT stocks, while selling was witnessed in Capital Goods, Bankex and PSU stocks. In scrip specific development, Natco Pharma was trading in green after Reserve Bank of India allowed foreign investors to increase their investment in the company to 49% from existing 31.50%.

On the global front, Asian shares were trading mostly in red, as investors are growing increasingly wary of the broader market as valuations look stretched and with the latest rally taking place in thin volumes and led by just a few sectors. Japan’s Nikkei 225 was trading in green as investors noted Japanese Prime Minister Shinzo Abe statement that the country would continue pushing for a trans-Pacific trade deal while working with the US on checking the missile and nuclear weapon ambitions of North Korea. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 9,450 and 30,400 levels respectively. The market breadth on BSE was positive in the ratio of 1208:1059, while 124 scrips remained unchanged.

The BSE Sensex is currently trading at 30415.42, up by 93.30 points or 0.31% after trading in a range of 30363.37 and 30518.78. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.03%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Telecom up by 2.15%, TECK up by 0.95%, IT up by 0.88%, Energy up by 0.48% and Consumer Durables up by 0.39%, while Capital Goods down by 0.30%, Bankex down by 0.19%, PSU down by 0.13%, Realty down by 0.08% and Power down by 0.04% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.91%, TCS up by 2.14%, Wipro up by 1.66%, Dr. Reddy’s Lab up by 1.49% and Tata Motors up by 1.42%.

On the flip side, Asian Paints down by 1.16%, Coal India down by 0.74%, Sun Pharma down by 0.61%, Larsen & Toubro down by 0.59% and Axis Bank down by 0.57% were the top losers.

Meanwhile, continuing the rising streak for the eighth straight month, India’s merchandise exports stood at $24635.09 million, up by 19.77 percent in month of April 2017, as compared to $20568.85 million in April 2016, primarily due to robust performance by sectors such as petroleum, textiles, engineering goods as well as gems and jewellery. In rupee term the exports during the month stood at Rs 158913.79 crore, which was 16.23% higher compared to Rs 136720.11 crore during April, 2016. Besides, Non-petroleum and Non Gems & Jewellery exports in April 2017 were valued at $17718.87 million as against $ 15136.41 million in April 2016, an increase of 17.06%. 

However, trade deficit during April 2017 also witnessed about three-fold increase to $13249.19 million as compared to $4844.87 million in the same month last fiscal, mainly on account of sharp jump in gold and crude oil imports during the month. Overall taking merchandise and services together the trade balance improved, overall trade deficit for April- March 2016-17 was estimated at $ 40980.00 million, 16.87 percent lower in Dollar terms than the level of $ 49297.53 million during April-March 2015-16.

The country's imports too increased during the month and stood at $37884.28 Million, up by 49.07 per cent as compared to at $25413.72 million in April, 2016. In rupee terms the imports were of Rs 244380.52 crore, 44.67 per cent higher from Rs 168923.71 crore in April, 2016.

Oil imports during April, 2017 were valued at $7359.27 million which was 30.12% higher than oil imports valued at $5655.92 million in April 2016. Non-oil imports during April, 2017 were estimated at $ 30525.01 million which was 54.50% higher than non-oil imports of $ 19757.80 million in April, 2016.

The CNX Nifty is currently trading at 9466.00, up by 20.60 points or 0.22% after trading in a range of 9456.35 and 9492.60. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.90%, ACC up by 2.71%, TCS up by 2.12%, Wipro up by 1.70% and Dr. Reddy’s Lab up by 1.58%.

On the flip side, Zee Entertainment down by 1.85%, Asian Paints down by 1.31%, Hindalco down by 1.13%, Indiabulls Housing Finance down by 0.98% and Bank of Baroda down by 0.93% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 64.45 points or 0.25% to 25,307.14, Taiwan Weighted decreased 25.74 points or 0.26% to 10,011.08, Jakarta Composite decreased 15.37 points or 0.27% to 5,673.50, Shanghai Composite decreased 10.38 points or 0.34% to 3,079.85 and FTSE Bursa Malaysia KLCI decreased 2.77 points or 0.16% to 1,775.88.

On the other hand, KOSPI Index increased 2.14 points or 0.09% to 2,292.79 and Nikkei 225 increased 32.3 points or 0.16% to 19,902.15.