Benchmarks trade with marginal losses

Indian equity benchmarks are trading with marginal losses in early deals, as traders remained on sidelines ahead of the release of crucial wholesale price index (WPI) inflation data later in the day coupled with more corporate earnings this week. Sentiments remained downbeat with the commerce ministry’s data showing that India’s trade deficit widened to its highest level in more than five years in June, driven largely by a surge in oil prices and a weaker rupee. The trade deficit widened to $16.6 billion from $14.62 billion in May, though merchandise exports rose 17.57% year-on-year in June, on account of healthy growth in sectors such as petroleum and chemicals, while imports rose 21.31% to $44.3 billion during the month. Anxiety also persisted on the Reserve Bank of India’s data that the country’s foreign exchange reserves declined by $248.20 million to $405.81 billion in the week to July 6, despite a rise in the foreign currency assets.

Global cues too remained sluggish with Asian markets trading in red at this point of time ahead of the release of a barrage of China economic data due later in the day. However, The US markets ended slightly higher on Friday, as traders seemed reluctant to make significant moves on the heels of the considerable volatility seen over the past few sessions.

Back home, losses remained capped with Economic Affairs Secretary Subhash Chandra Garg’s statement that the Indian economy is at a take off stage and is expected to be the world’s third largest by 2030 with GDP worth $10 trillion. Meanwhile, markets further limited their losses with Union Minister Arun Jaitley’s statement that India will pip Great Britain to become the fifth largest economy in the world next year if economic expansion continues at the projected rate. In scrip specific developments, Infosys surged on reporting 4% rise in Q1 consolidated net profit and Aurobindo Pharma gained with arm entering into agreement with Apotex International.

The BSE Sensex is currently trading at 36520.15, down by 21.48 points or 0.06% after trading in a range of 36445.16 and 36658.71. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.81%, while Small cap index was down by 0.95%.

The few gaining sectoral indices on the BSE were IT up by 1.23%, TECK up by 1.07% and FMCG up by 0.33%, while Healthcare down by 1.48%, Realty down by 1.21%, Energy down by 0.94%, Industrials down by 0.85% and Bankex was down by 0.75% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.71%, Hindustan Unilever up by 1.46%, Wipro up by 1.35%, Asian Paints up by 1.30% and NTPC up by 0.85%. On the flip side, ICICI Bank down by 2.80%, Sun Pharma down by 2.35%, Tata Motors - DVR down by 2.03%, Tata Motors down by 1.93% and Reliance Industries down by 1.16% were the top losers.

Meanwhile, expressing confidence on India’s growth, Economic Affairs Secretary Subhash Chandra Garg has said that the Indian economy is expected to be the world’s third largest by 2030 with Gross Domestic Product (GDP) worth $10 trillion. He added ‘Good days are ahead and lot of good work is happening in the economy. The economy is on a stage of take-off where Indians can legitimately hold their heads high’.

Garg said that in the first 40 years of independence, the country hardly grew at 3.5%, and currently 7-8% is the norm. He also said ‘By 2030, we can legitimately expect to be a $10 trillion economy. That is the challenge. That is also the opportunity’. He added that ‘8% growth is very much achievable... If we keep that... we can look forward to be an Indian economy of $10 trillion which would be the third largest economy in the world’.

Economic Affairs Secretary further said that India’s digital economy is expected to touch a $1 trillion mark by 2022 and going forward, possibly by 2030, the digital economy would be half of the total economy. Besides, India’s economy grew at a seven-quarter high of 7.7% in the three months ended March, helped by higher government spending and investments. Meanwhile, as per the World Bank data, the country became the sixth largest economy with a GDP of $2.59 trillion in 2017, relegating France to the seventh position.

The CNX Nifty is currently trading at 10999.95, down by 18.95 points or 0.17% after trading in a range of 10975.60 and 11019.50. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.07%, Asian Paints up by 1.44%, Wipro up by 1.37%, Tech Mahindra up by 1.34% and Hindustan Unilever up by 1.31%. On the flip side, Dr. Reddys Lab down by 8.52%, ICICI Bank down by 2.69%, Sun Pharma down by 2.46%, Lupin down by 2.26% and Tata Motors down by 1.71% were the top losers.

All the Asian markets are trading in red; Taiwan Weighted  slipped 1.95 points or 0.02% to 10,862.59, Straits Times decreased 27.45 points or 0.85% to 3,232.90, Jakarta Composite declined 58.56 points or 0.99% to 5,885.51, Hang Seng dropped 47.71 points or 0.17% to 28,477.73, KOSPI shed 6.46 points or 0.28% to 2,304.44 and Shanghai Composite was down by 13.42 points or 0.48% to 2,817.76.