Key benchmarks continue sluggish trend

Indian equity benchmarks continued their sluggish trade in late morning session, taking cues from weak Asian counterparts. Sentiments were down-beat with a private report stating that at least $5 billion (around Rs 35,000 crore) of non-fund credit will need to be converted into domestic loans, following the Reserve Bank of India’s (RBI) ban on issuance of letters of undertaking (LoU). The migration of customers to the home market could soak up a lot of domestic liquidity in the next few months. Investors took note of Icra’s report which stated that for a group of 13 states, aggregate revenues are forecast to grow at 14.4 percent against 21.3 percent in 2017-18. With a clutch of states expected to clock in a slower pace of aggregate revenues in 2018-19, the casualty could be either their capital expenditure or their deficits. Investors remained concerned with the report highlighting that India’s exports fell by 0.66% in the month of March 2018 over the same period in the previous year, as shipments declined, but, the full year exports surpassed $300 billion mark.

On the global front, the Asian markets were trading mixed. Investors digested the softer close on Wall Street and geopolitical tensions on the back of United States led airstrikes on Syria. Back on domestic turf, in scrip specific development, Link Pharma Chem gained on restarting operations at Nandesari Plant in view of compliance of all requirements of Gujarat Pollution Control Board (GPCB), Gandhinagar. Besides, Steel Strips Wheels edged higher on bagging another repeat order of 41,000 caravan wheels to be shipped from the company’s Chennai plant from next month onwards.

The BSE Sensex is currently trading at 34103.76, down by 88.89 points or 0.26% after trading in a range of 33899.34 and 34169.29. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.18%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.73%, Realty up by 0.38%, FMCG up by 0.38%, Capital Goods up by 0.19% and Power was up by 0.01% while, IT down by 0.90%, Oil & Gas down by 0.84%, TECK down by 0.81%, Energy down by 0.79% and Consumer Durables was down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 0.86%, ITC up by 0.81%, Adani Ports up by 0.80%, Power Grid up by 0.68% and Sun Pharma was up by 0.68%. On the flip side, Tata Motors - DVR down by 3.85%, Tata Motors down by 3.72%, Infosys down by 3.20%, Tata Steel down by 1.34% and SBI was down by 1.25% were the top losers.

Meanwhile, breaking the four months growth momentum, India’s exports fell by 0.66% in the month of March 2018 over the same period in the previous year, as shipments declined, but, the full year exports surpassed $300 billion mark. However, imports rose by 7.15% in March 2018 over the corresponding month of the previous year. Besides, the trade deficit widened to $13.69 billion in March 2018 from $10.65 billion in March 2017, on the back of higher imports, amid concerns over global trade. The overall trade deficit for April-March 2017-18 widened to $87.17 billion as compared to $47.70 billion during April-March 2016-17.

As per the data released by the Commerce Ministry, exports decreased marginally by 0.66% to $29.11 billion in March 2018, as compared to $29.30 billion in the same month a year ago. In Rupee terms, it was down by 1.95% to Rs 189271.16 crore in March 2018, as compared to Rs 193028.91 crore in March 2017. Cumulative value of exports for the period April-March 2017-18 was $302.84 billion as against $275.85 billion, registering a positive growth of 9.78% over the same period last year. In Rupee terms, it was up by 5.56% to Rs 1952168.79 crore from Rs 1849428.76 crore.

Non-petroleum and Non Gems & Jewellery exports in March 2018 were valued at $22.42 billion as against $21.44 billion in March 2017, an increase of 4.60%. Non-petroleum and Non Gems and Jewellery exports during April-March 2017-18 were valued at $222.45 billion as compared to $200.89 billion for the corresponding period in 2016-17, an increase of 10.73%.

Imports during March 2018, increased by 7.15% to $42.80 billion as compared to $39.95 billion in March 2017, while in rupee terms it was up by 5.75% to Rs 278296.95 crore from Rs 263155.49 crore in March 2017. Cumulative value of imports for the period April-March 2017-18 was $459.67 billion as against $384.36 billion, registering a positive growth of 19.59% over the same period last year. In rupee terms, it was Rs 2962897.70 crore, up by 14.94% from Rs 2577665.59 crore in the same period last year.

Oil imports during March 2018 were valued at $11.11 billion which was 13.92% higher than oil imports valued at $9.75 billion in March 2017. Oil imports during April-March 2017-18 were valued at $109.11 billion which was 25.47% higher than the oil imports of $86.96 billion in the corresponding period last year. Non-oil imports during March 2018 were estimated at $31.69 billion which was 4.96% higher than non-oil imports of $30.20 billion in March 2017. Non-oil imports during April-March 2017-18 were valued at $350.56 billion which was 17.88% higher than the level of such imports valued at $297.39 billion in April-March, 2016-17.
The CNX Nifty is currently trading at 10458.80, down by 21.80 points or 0.21% after trading in a range of 10396.35 and 10477.65. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Cipla up by 3.82%, Grasim Industries up by 2.48%, Lupin up by 1.89%, Indiabulls Housing up by 1.36% and Tech Mahindra was up by 1.34%. On the flip side, Tata Motors down by 4.23%, Infosys down by 3.50%, HPCL down by 1.39%, Axis Bank down by 1.39% and SBI was down by 1.26% were the top losers.

Asian markets were trading mixed, KOSPI Index surged 2.41 points or 0.1% to 2,457.48, FTSE Bursa Malaysia KLCI rose by 3.53 points or 0.19% to 1,872.00, Jakarta Composite soared 28.39 points or 0.45% to 6,298.72 and Nikkei 225 was up by 43.18 points or 0.2% to 21,821.92.

On the flip side; Hang Seng slipped 537.41 points or 1.74% to 30,270.97, Shanghai Composite declined 53 points or 1.68% to 3,106.06 and Taiwan Weighted was down by 10.84 points or 0.1% to 10,954.55.