Benchmarks trade lower on subdued global cues

Pressurized by feeble global cues, Indian equity benchmarks made a pessimistic start and are trading with a cut of over three fourth of a percent in early deals on Wednesday, with frontline gauges breaching their crucial 35,300 (Sensex) and 10,750 (Nifty) levels. Sentiments remained downbeat on report that India’s trade deficit slightly widened to $13.72 billion in April from $13.25 billion a year ago. Exports grew by 5.17% to $25.91 billion in April compared to the same month last year on account of healthy performance by engineering, chemicals and pharmaceutical segments. Imports too grew by 4.60% to $39.63 billion in the month on yearly basis. Traders reacted negatively to a private report which stated that inflation is set to rise further towards the second half of the fiscal, and could average 5.1% this financial year compared to 3.6% last year. According to the global financial services major, the factors that are likely to impact inflation going forward include higher oil prices, a weaker rupee, higher MSPs and more currency in circulation.

Global cues too remained subdued with Asian markets trading mostly in red at this point of time after North Korea cancelled high-level talks with Seoul and threatened to scrap a historic summit next month between US President Donald Trump and North Korean leader Kim Jong Un. The US markets ended lower on Tuesday, as investors worried about a lack of progress in US-China trade talks and Treasury yields rose after US retail sales data indicated rising inflation.

Back home, NITI Aayog, the government’s premier think tank, plans to hold the fourth meeting of its governing council next month to discuss the agenda for ‘New India 2022’ to expedite economic growth over the next four years. In scrip specific developments, Jubilant Life surged on receiving ANDA’s approval for Niacin Extended-Release Tablets USP and Cyient advanced on inking agreement to acquire 49% stake in Cyient Insights.

The BSE Sensex is currently trading at 35270.50, down by 273.44 points or 0.77% after trading in a range of 35243.38 and 35452.35. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.93%, while Small cap index was down by 0.79%.

The only gaining sectoral indices on the BSE were Realty up by 0.86% and IT was up by 0.13%, while PSU down by 1.88%, Oil & Gas down by 1.65%, Bankex down by 1.60%, Energy down by 1.46% and Consumer Durables was down by 1.18% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 0.68%, Tata Steel up by 0.40%, TCS up by 0.30%, Power Grid Corporation up by 0.09% and Hindustan Unilever up by 0.07%. On the flip side, ICICI Bank down by 3.90%, Hero MotoCorp down by 3.18%, SBI down by 2.88%, Adani Ports down by 1.83% and ONGC down by 1.70% were the top losers.

Meanwhile, recovering from the last month’s decline of 0.66%, India’s merchandise exports jumped 5.17% in the month of April 2018, primarily with the help of double digit growth in shipment of engineering, chemicals and pharmaceutical segments. However, trade deficit widened slightly to $13.72 billion in April from $13.25 billion a year ago. Besides, overall trade deficit, taking merchandise and services together, for April-March 2017-18 is estimated at $80.61 billion as compared to $41.79 billion during April-March 2016-17. Imports too grew by 4.60% Year-on-Year basis in the first month of current fiscal year.

As per the data released by the Commerce Ministry, exports grew by 5.17% to $25.91 billion in April 2018, as compared to $24.64 billion in the same month a year ago. In Rupee terms, exports surged by 7.01% to Rs 170052.96 crore in April 2018, as compared to Rs 158913.79 crore in April 2017. Non-petroleum and Non Gems & Jewellery exports in April 2018 were valued at $19.80 billion as against $17.72 billion in April 2017, an increase of 11.73%.

Imports during April 2018, increased by 4.60% to $39.63 billion as compared to $37.88 billion in April 2017, while in rupee terms it was up by 6.43% to Rs 260084.67 crore from Rs 244380.52 crore in April 2017. Oil imports during April 2018 were valued at $10.41 billion which was 41.49% higher than oil imports valued at $7.36 billion in April 2017. Non-oil imports during April 2018 were estimated at $29.21 billion which was 4.30% lower than non-oil imports of $30.53 billion in April 2017.

The CNX Nifty is currently trading at 10708.75, down by 93.10 points or 0.86% after trading in a range of 10702.70 and 10764.80. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Lupin up by 1.88%, Tech Mahindra up by 0.74%, Wipro up by 0.42%, Hindalco up by 0.41% and Hindustan Unilever up by 0.39%. On the flip side, ICICI Bank down by 3.96%, Cipla down by 3.57%, GAIL India down by 3.14%, Hero MotoCorp down by 3.02% and SBI down by 2.68% were the top losers.

Asian markets are trading mostly in red; Jakarta Composite declined 65.71 points or 1.13% to 5,772.41, Nikkei 225 decreased 53.88 points or 0.24% to 22,764.14, Hang Seng shed 35.68 points or 0.11% to 31,116.35 and Shanghai Composite down by 8.84 points or 0.28% to 3,183.28.

On the flip side, KOSPI Index rose 2.41 points or 0.1% to 2,460.95, FTSE Bursa Malaysia KLCI increased 6.22 points or 0.34% to 1,854.42 and Taiwan Weighted up by 20.16 points or 0.19% to 10,894.89.