Key gauges extend losses; Sensex tanks over 100 points

Key gauges extended their initial losses in early noon session with Sensex and Nifty hovering near their lowest point of the day. Investors remain concerned with Department of Industrial Policy and Promotion’s (DIPP) data showing that FDI inflows in the services sector declined by about 23% to $6.7 billion in 2017-18. Cautiousness also prevailed on the street after a report showed that the foreign investors have pulled out nearly Rs 1,200 crore from the debt markets in the first two weeks of the month on the back of higher fuel prices and possibilities of rate hike by the US Federal Reserve. Meanwhile, India has flagged concerns of its large trade deficit with China, visa restrictions for Indian professionals and the challenges faced in exporting IT services, meat, rice and medicines to Beijing at the World Trade Organization (WTO).  Besides, heavy selling in Realty, Metal and Basic Materials dragged the markets lower. Separately, depreciation of the Indian rupee too dampened the sentiments.

On the global front, All the Asian markets were trading under pressure after data from China showed the world’s second-largest economy slowed slightly in the second quarter, and as investors remain cautious over the impact of the heated Sino-U.S. trade war. Back home, broader indices were underperforming the larger peers, and the market breadth was also favoring the negative trend. In scrip specific development, Cochin Shipyard surged on signing contract with IWAI.

The BSE Sensex is currently trading at 36432.74, down by 108.89 points or 0.30% after trading in a range of 36431.45 and 36658.71. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined by 1.41%, while Small cap index down by 1.61%.

The few gaining sectoral indices on the BSE were IT up by 1.37%, TECK up by 1.08% and FMCG up by 0.29%, while Realty down by 2.39%, Metal down by 2.32%, Basic Materials down by 1.88%, Healthcare down by 1.88% and Industrials down by 1.51% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 3.35%, Hindustan Unilever up by 1.58%, NTPC up by 1.11%, Asian Paints up by 0.99% and Indusind Bank up by 0.86%. On the flip side, ICICI Bank down by 4.09%, Tata Steel down by 4.04%, Tata Motors - DVR down by 3.49%, Tata Motors down by 3.39% and Sun Pharma down by 2.78% were the top losers.

Meanwhile, staying in positive territory for the third consecutive month, India’s merchandise exports grew by 17.57% to $27.70 billion in June 2018, on the back of healthy growth in sectors such as petroleum and chemicals. However, the overall trade deficit widened to $16.60 billion during the month under review as against $12.96 billion in June 2017, the highest in nearly 43 months. The trade deficit during April- June 2017-18, was $44.94 billion as against $40.05 billion in the same period last year.

As per the data released by the Commerce Ministry, exports increased by 17.57% to $27.70 billion in June 2018, as compared to $23.56 billion in the same month a year ago. In Rupee terms, it was up by 23.68% to Rs 187800.20 crore in June 2018, from Rs 151844.56 crore in June 2017. Cumulative value of exports for the period April- June 2018-19 was $82.47 billion as against $72.21 billion, registering a positive growth of 14.21% over the same period last year. In Rupee terms, it was up by 18.76% to Rs 552781.61 crore from Rs 465472.04 crore.

Non-petroleum and Non Gems & Jewellery exports in June 2018 were valued at $20.13 billion as against $17.48 billion in June 2017, an increase of 15.13%. Non-petroleum and Non Gems and Jewellery exports during April- June 2018-19 were valued at $59.86 billion as compared to $52.71 billion for the corresponding period in 2016-17, an increase of 13.56%.

Imports during June 2018, increased by 21.31% to $44.30 billion as compared to $36.52 billion in June 2017, while in rupee terms it was up by 27.61% to Rs 300351.83 crore from Rs 235361.85 crore in June 2017.  Cumulative value of imports for the period April- June 2018-19 was $127.41 billion as against $112.26 billion, registering a positive growth of 13.49% over the same period last year. In rupee terms, it was Rs 854096.98 crore, up by 18.03% from Rs 723631.11 crore in the same period last year.

Oil imports during June 2018 were valued at $12.73 billion which was 56.61% higher than oil imports valued at $8.13 billion in June 2017. Oil imports during April- June 2018-19 were valued at $34.64 billion which was 49.44% higher than the oil imports of $23.18 billion in the corresponding period last year.  Non-oil imports during June 2018 were estimated at $31.58 billion which was 11.20% higher than non-oil imports of $28.40 billion in June 2017. Non-oil imports during April- June 2018-19 were valued at $92.77 billion which was 4.14% higher than the level of such imports valued at $89.09 billion in April- June, 2017-18.

The CNX Nifty is currently trading at 10966.65, down by 52.25 points or 0.47% after trading in a range of 10964.10 and 11019.50. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.79%, Tech Mahindra up by 1.79%, Hindustan Unilever up by 1.28%, Asian Paints up by 1.06% and Indusind Bank up by 1.01%. On the flip side, Dr. Reddys Lab down by 8.69%, Tata Steel down by 4.21%, ICICI Bank down by 4.01%, Tata Motors down by 3.11% and Sun Pharma down by 2.92% were the top losers.

All the Asian markets were trading in red; Hang Seng decreased 86.12 points or 0.3% to 28,439.32, KOSPI declined 7.89 points or 0.34% to 2,303.01, Shanghai Composite plunged 24.19 points or 0.86% to 2,806.99, Taiwan Weighted slipped 47.09 points or 0.44% to 10,817.45, Straits Times fell 25.69 points or 0.79% to 3,234.66 and Jakarta Composite was down 57.85 points or 0.98% to 5,886.22.