Lingering geopolitical concerns drag benchmarks lower in early deals

Indian equity benchmarks made a pessimistic start in early deals on Monday, as geopolitical concerns linger and focus gradually shifts to corporate earnings. Traders also were concerned with report that India’s merchandise exports fell for the first time in five months in March and the trade deficit widened amid concerns over global trade and US moves to review a programme allowing duty-free imports of goods. India’s merchandise exports in March fell 0.7 percent year-on-year to $29.1 billion, and the trade deficit widened to $13.7 billion. Imports rose 7.2 percent on year to $42.8 billion in March. However, losses remained capped with traders getting some solace with World Economic Forum’s (WEF) report that India is well positioned to play a key role in shaping the global fourth industrial revolution with a young labour force, a large English-speaking population and the second largest numbers of internet users.

On the global front, Asian markets are exhibiting mixed trend at this point of time, as investors digested the softer close on Wall Street and geopolitical tensions on the back of U.S. led airstrikes on Syria last week. The US markets ended in red terrain on Friday as buying interest waned shortly after the open with traders turning reluctant to make significant moves ahead of a slew of earnings news this week.

Back home, some solace also came with Asian Development Bank’s (ADB) statement that India can achieve over 8 per cent growth rate in a sustained manner if it takes steps to revive investments and make exports competitive. In scrip specific development, infosys edged lower despite the IT major meeting street’s expectations on financial numbers for the January-March quarter as well as for 2017-18. But the firm’s revenue growth guidance for 2018-19, especially the projection on operating margin, disappointed investors.

The BSE Sensex is currently trading at 34141.01, down by 51.64 points or 0.15% after trading in a range of 33899.34 and 34143.99. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.12%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.74%, Power up by 0.56%, Capital Goods up by 0.45%, FMCG up by 0.36% and Utilities was up by 0.33%, while IT down by 1.61%, TECK down by 1.35%, Oil & Gas down by 0.54%, Energy down by 0.50% and Telecom was down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 1.37%, Adani Ports up by 1.13%, NTPC up by 1.08%, Bajaj Auto up by 0.96% and Sun Pharma up by 0.74%. On the flip side, Infosys down by 3.46%, Tata Motors down by 2.09%, Tata Motors - DVR down by 1.75%, Wipro down by 1.18% and ONGC down by 0.93% were the top losers.

Meanwhile, with more than half of India's population under the age of 27, the World Economic Forum (WEF) President Borge Brende has said that the country can play a pivotal role in shaping the global fourth industrial revolution. He also said that India can lead the fourth industrial revolution and simultaneously enhance the quality, equity and sustainability of its own growth and development outcomes. Besides, he said that the country has the second largest English speaking population along with the second largest number of internet users on mobile devices.

However, Brende noted that the country will need access to infrastructure, electricity, and stability in monetary and fiscal policies. He highlighted that India is lagging behind when it comes to skills and education. Fourth industrial revolution -- a technological revolution through artificial intelligence, blockchains and Internet of Things -- is changing the scale, scope and complexity of the opportunities and challenges people face today.

In order to set up the Centre for the Fourth Industrial Revolution India in Mumbai, the Forum has already partnered with the Indian government. The centre will become operational in the second half of this year and it will work to accelerate the development and implementation of governance protocols for emerging science and technology to serve citizens, society and the public at large. Besides, the WEF has identified India as a partner since it is a key economic, political and social shaper of the 21st century's global, regional and industry systems.

The CNX Nifty is currently trading at 10473.45, down by 7.15 points or 0.07% after trading in a range of 10396.35 and 10474.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Cipla up by 2.92%, Grasim Industries up by 1.91%, Indiabulls Housing up by 1.68%, Lupin up by 1.34% and Power Grid Corporation up by 1.19%. On the flip side, Infosys down by 3.44%, Tata Motors down by 2.27%, GAIL India down by 1.27%, Wipro down by 1.14% and ONGC down by 0.99% were the top losers.

Asian markets are trading mixed; Jakarta Composite rose 2.17 points or 0.03% to 6,272.50, FTSE Bursa Malaysia KLCI increased 3.92 points or 0.21% to 1,872.39 and Nikkei 225 up by 48.06 points or 0.22% to 21,826.80.

On the flip side, Hang Seng declined 452.45 points or 1.47% to 30,355.93, Shanghai Composite dropped 47.4 points or 1.5% to 3,111.65, Taiwan Weighted slipped 10.12 points or 0.09% to 10,955.27 and KOSPI Index down by 0.93 points or 0.04% to 2,454.14.