Indian equity markets trade flat with positive bias

Indian equity markets were trading flat with a positive bias in the early noon session on the back of some buying in Utilities, Healthcare and IT stocks. Investors’ sentiments turned a little positive with Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest Economic Outlook Survey stating that the Indian economy is expected to grow at 7.4% in the current fiscal, higher than the previous year. Some support also came in with Union Minister Arun Jaitley stating that India has sufficient foreign exchange reserves to mitigate any undue volatile in the currency market. However, anxiety still remained on the street due to negative Asian cues and sustained foreign fund outflows. There was some level of cautiousness with India Ratings’ report stating that if the steep decline in the household savings rate -- which has fallen to 16.3 per cent from 23.6 per cent between fiscals 2012 and 2017 -- continues, it may pose a serious challenge to overall growth and the macroeconomic stability. 

On the global front, all the Asian markets were trading under pressure tracking losses on Wall Street amid fresh concern over Turkey’s currency crisis. Back home, as per provisional data from the stock exchanges, the foreign institutional investors (FIIs) sold shares worth a net Rs 378.84 crore on August 14, 2018. In scrip specific development, BEML rose on launching Electric Drive Rear Dump Truck and Chokhani Securities surged on raising funds through QIP.

The BSE Sensex is currently trading at 37866.08, up by 14.08 points or 0.04% after trading in a range of 37644.97 and 37891.92. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.16%, while Small cap index up by 0.40%.

The top gaining sectoral indices on the BSE were Utilities up by 0.96%, Healthcare up by 0.94%, IT up by 0.87%, Auto up by 0.77% and TECK up by 0.71%, while Realty down by 1.57%, Metal down by 1.27%, Consumer Durables down by 0.68% and Basic Materials down by 0.45% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.23%, Axis Bank up by 2.07%, ICICI Bank up by 1.67%, Infosys up by 1.51% and Coal India up by 1.42%. On the flip side, Kotak Mahindra Bank down by 2.93%, Vedanta down by 2.42%, HDFC down by 1.50%, Wipro down by 1.30% and HDFC Bank down by 0.83% were the top losers.

Meanwhile, staying in positive territory for the fourth consecutive month, India’s merchandise exports grew by 14.32% to $25.77 billion in July 2018, on the back of better performance of gems and jewellery sector as well as petroleum products. However, the overall trade deficit widened to $18.02 billion during the month under review as against $11.45 billion in July 2017, the highest in nearly 5 years. The trade deficit during April- July 2017-18, was $62.96 billion as against $51.50 billion in the same period last year.

As per the data released by the Commerce Ministry, exports increased by 14.32% to $25.77 billion in July 2018, as compared to $22.54 billion in the same month a year ago. In Rupee terms, it was up by 21.84% to Rs 1,77,041.47 crore in July 2018, from Rs 1,45,308.10 crore in July 2017. Cumulative value of exports for the period April- July 2018-19 was $108.24 billion as against $94.76 billion, registering a positive growth of 14.23% over the same period last year. In Rupee terms, it was up by 19.49% to Rs 7,29,823.08 crore from Rs 6,10,780.14 crore.

Non-petroleum and Non Gems & Jewellery exports in July 2018 were valued at $18.68 billion as against $16.98 billion in July 2017, an increase of 9.98%. Non-petroleum and Non Gems and Jewellery exports during April- July 2018-19 were valued at $78.54 billion as compared to $69.70 billion for the corresponding period in 2016-17, an increase of 12.69%.

Imports during July 2018, increased by 28.81% to $43.79 billion as compared to $33.99 billion in July 2017, while in rupee terms it was up by 37.28% to Rs 3,00,784.72 crore from Rs 2,19,108.89 crore in July 2017.  Cumulative value of imports for the period April- July 2018-19 was $171.20 billion as against $146.26 billion, registering a positive growth of 17.05% over the same period last year. In rupee terms, it was Rs 11,54,881.70 crore, up by 22.50% from Rs 9,42,740.00 crore in the same period last year.

Oil imports during July 2018 were valued at $12.35 billion which was 57.41% higher than oil imports valued at $7.84 billion in July 2017. Oil imports during April- July 2018-19 were valued at $46.98 billion which was 51.45% higher than the oil imports of $31.02 billion in the corresponding period last year. Non-oil imports during July 2018 were estimated at $31.44 billion which was 20.23% higher than non-oil imports of $26.15 billion in July 2017. Non-oil imports during April- July 2018-19 were valued at $124.21 billion which was 7.79% higher than the level of such imports valued at $115.23 billion in April- July, 2017-18.

The CNX Nifty is currently trading at 11441.95, up by 6.85 points or 0.06% after trading in a range of 11376.95 and 11449.85. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 4.88%, Axis Bank up by 2.22%, Sun Pharma up by 2.09%, Bajaj Finance up by 2.01% and Cipla up by 1.83%. On the flip side, Kotak Mahindra Bank down by 3.07%, Vedanta down by 2.72%, Hindalco down by 1.99%, Indiabulls Housing down by 1.95% and Ultratech Cement down by 1.73% were the top losers.

All the Asian markets were trading in red; Straits Times decreased 12.06 points or 0.37% to 3,222.06, Hang Seng plunged 160.44 points or 0.59% to 27,163.15, Shanghai Composite slipped 3.44 points or 0.13% to 2,719.82, Jakarta Composite dipped 30.06 points or 0.52% to 5,786.53, Nikkei 225 declined 12.18 points or 0.05% to 22,192.04, KOSPI lost 20.17 points or 0.9% to 2,238.74 and Taiwan Weighted was down 32.85 points or 0.31% to 10,683.90.