Weak trade prevails in morning session

Indian equity benchmarks continued their weak trade in morning session on account of selling in frontline blue chip counters. The markets were under pressure amid political upheaval after the Telugu Desam Party (TDP) formally decided to quit the NDA government. TDP formally decided to quit the NDA, days after two of its ministers quit the Narendra Modi government protesting for Special Category Status to Andhra Pradesh. Sentiments also remained dampened on report that India’s trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017. Exports from the country rose 4.48% in dollar terms during February this year compared to the same month of the last fiscal. But, in rupee terms, export growth was flat with a mere 0.27% rise, reflecting a dip in value of the Indian currency. Imports rose during the month under consideration and were 10.41% higher (in dollar terms). Separately, the Federation of Indian Export Organisations (FIEO) said that the US decision to challenge Indian export subsidy schemes at World Trade Organisation (WTO) is an area of grave concern for domestic traders and the government should phase out these incentives.

Meanwhile, the World Bank observed that the Goods and Services Tax (GST) regime in India, which was rolled out in July last year, is relatively more complex compared with similar taxes on value added across other countries. The complexity of India’s GST, it said in a report, was due to higher tax rates and large number of tax slabs compared with similar systems in other countries. The street shrugged off IMF report which highlighted that India should see its growth picking up this year after two transitory shocks - the demonetization and the GST - while China’s growth is likely to fall gradually.

Traders were seen buying in Realty, Capital Goods and Telecom stocks, while selling was witnessed in Energy, Oil & Gas, Energy and Metal sector stocks. In scrip specific development, Jaiprakash Associates was trading firm as RARE Enterprises bought 3 crore shares of the company. Big Bull Rakesh Jhunjhunwala’s RARE Enterprises has picked up 3 crore shares of the company at an average price of Rs18.37 on Thursday. Banking stocks showed mixed performance after RBI data’s showed that banks credit growth continued to grow by in double digit at 11.48% to Rs 83,48,773 crore in the fortnight ended March 2. In the period ended March 3, 2017, the advances had stood at Rs 74,88,993 crore.

On the global front, Asian markets were trading mostly in red as reports of more chaos in the Trump administration tested investors’ nerves, already frayed by fears that US tariffs could hurt the global economy and trigger a trade war. Political uncertainties are mounting in Japan, where Prime Minister Shinzo Abe is under pressure for suspicions of a cover-up in a controversial land sale. Back home, the BSE Sensex and NSE Nifty were trading below the psychological 33,500 and 10,350 levels respectively. The market breadth on BSE was positive in the ratio of 1267:939, while 115 scrips remained unchanged.

The BSE Sensex is currently trading at 33497.82, down by 187.72 points or 0.56% after trading in a range of 33465.44 and 33691.32. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.02%, while Small cap index was up by 0.30%.

The only gaining sectoral indices on the BSE were Realty up by 0.39%, Capital Goods up by 0.30%, Telecom up by 0.27% and Consumer Disc up by 0.06%, while Energy down by 1.66%, Oil & Gas down by 1.46%, Metal down by 1.42%, PSU down by 0.71% and Utilities down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.88%, Yes Bank up by 0.99%, Dr. Reddy’s Lab up by 0.62%, SBI up by 0.51% and Larsen & Toubro up by 0.38%.

On the flip side, Coal India down by 5.91%, Tata Motors down by 2.17%, ONGC down by 1.63%, Tata Motors - DVR down by 1.43% and NTPC down by 1.38% were the top losers.

Meanwhile, continuing its growth trajectory for the fourth straight month, India’s merchandise exports grew by 4.48% to $25834.36 million in February 2018, led by increasing outbound shipments of petroleum products, and organic, inorganic chemicals. However, the overall trade deficit widened to $11979.21 million during the month under review as against $9521.73 million in February 2017. The trade deficit during April- February 2017-18 was $143134.73 million as against $97858.73 million in the same period last year. 

As per the data released by the Commerce Ministry, exports grew by 4.48% to $25834.36 million in February 2018, as compared to $24726.71 million in the same month a year ago. In Rupee terms exports increased by 0.27% to Rs 166305.72 crore in February 2018, as compared to Rs 165855.64 crore in February 2017. Cumulative value of exports for the period April- February 2017-18 was $273730.91 million as against $246550.17 million, registering a positive growth of 11.02% over the same period last year. In Rupee terms it increased by 6.43% to Rs 1762897.63 crore from Rs 1656399.85 crore.

Non-petroleum and Non Gems & Jewellery exports in February 2018 were valued at $18792.79 million against $18176.00 million in February 2017, an increase of 3.39%. Non-petroleum and Non Gems and Jewellery exports during April- February 2017-18 were valued at $200030.96 million as compared to $179457.88 million for the corresponding period in 2016-17, an increase of 11.46%.

Imports during February 2018, advanced by 10.41% to $37813.57 million as compared to $34248.44 million in February 2017 and in rupee terms it was up by 5.96% to Rs 243420.48 crore from Rs 229723.10 crore in February 2017. Cumulative value of imports for the period April-February 2017-18 was $416865.64 million as against $344408.90 million, registering a positive growth of 21.04% over the same period last year. In rupee terms the cumulative value of imports was Rs 2684600.75 crore, up by 15.99% as against Rs 2314510.09 crore in the same period last year.

Oil imports during February 2018, were valued at $10194.33 million which was 32.05% higher than oil imports valued at $7719.84 million in February 2017. Oil imports during April- February, 2017-18 were valued at $98002.25 million which was 26.92% higher than the oil imports of $77213.52 million in the corresponding period last year. Non-oil imports during February, 2018 were estimated at $27619.24 million which was 4.11% higher than non-oil imports of $26528.60 million in February 2017. Non-oil imports during April- February 2017-18 were valued at $318863.39 million which was 19.34% higher than the level of such imports valued at $267195.38 in April- February, 2016-17.

The CNX Nifty is currently trading at 10308.90, down by 51.25 points or 0.49% after trading in a range of 10293.40 and 10346.30. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.03%, Aurobindo Pharma up by 1.64%, Zee Entertainment up by 1.58%, Yes Bank up by 1.38% and UPL up by 1.14%.

On the flip side, Coal India down by 5.97%, BPCL down by 2.26%, Indian Oil Corporation down by 2.21%, Tata Motors down by 1.90% and HPCL down by 1.57% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 94.91 points or 0.44% to 21,709.04, Jakarta Composite decreased 39.06 points or 0.62% to 6,282.84, Hang Seng decreased 19.31 points or 0.06% to 31,521.79, KOSPI Index decreased 4.84 points or 0.19% to 2,487.54, FTSE Bursa Malaysia KLCI decreased 3.48 points or 0.19% to 1,841.79 and Shanghai Composite decreased 2.57 points or 0.08% to 3,288.54.

On the other hand, Taiwan Weighted increased 29.3 points or 0.27% to 11,047.75.