Indian equity markets continue to trade in green zone

Indian equity markets continued to trade in the green terrain in the early noon session on the back of buying in Basic Materials and Bankex stocks. Mahindra & Mahindra, ICICI Bank and ONGC were amongst the top gainers. Investors took some support with report that Foreign Institutional Investors (FIIs) bought shares worth Rs 67.86 crore on October 15, 2018, as per provisional data from the stock exchanges. Broader indices were also trading in green with Mid cap and Small cap index gaining over 0.60% and 1.35% respectively. In stock specific movement, Alembic Pharmaceuticals stock rallied owing to receiving tentative approval from USFDA for Alogliptin Tablet and Shares of South Indian Bank gained after company reported strong September quarter numbers. Some encouragement came with the United Nations Conference on Trade and Development (UNCTAD) in its 'Investment Trends Monitor' report indicating that in South Asia, India attracted $22 billion of foreign direct investment (FDI) flows, contributing to the subregion’s 13 percent rise in FDI in the first half of 2018 (H1 2018).’ However, the indices pared some of their gains as investors turned a bit cautious with Ministry of Commerce and Industry’s report showing that exports were pegged at $27.95 billion in September, down 2.15% from a year ago, while imports rose 10.45% to $41.9 billion, lowest in five months. Besides, weakening of rupee against the dollar also kept a lid on the gains.

On the global front, Asian markets were trading mixed amid geopolitical tensions between Saudi Arabia and the international community. The Japanese market is higher, with a weaker yen lifting shares of exporters. Back home, stocks related to solar power were in focus with a private report stating that India installed 4.9 GW of solar power, consolidating its position as the second largest solar market in the world, during the first half of calendar year 2018.

The BSE Sensex is currently trading at 35100.39, up by 235.29 points or 0.67% after trading in a range of 34913.06 and 35215.79. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.62%, while Small cap index up by 1.38%.

The top gaining sectoral indices on the BSE were Basic Materials up by 1.20%, Bankex up by 1.14%, Consumer Disc up by 1.01%, Auto up by 1.00% and Telecom up by 0.99%, while Power down by 0.03% was the sole losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.97%, ICICI Bank up by 2.20%, ONGC up by 2.16%, Axis Bank up by 2.11% and HDFC up by 1.73%. On the flip side, NTPC down by 1.06%, Wipro down by 0.84%, Power Grid Corporation down by 0.64%, Sun Pharma down by 0.50% and Bajaj Auto down by 0.43% were the top losers.

Meanwhile, breaking the five months growth momentum, India’s exports fell by 2.15% in the month of September 2018 over the same period in the previous year, due to the base impact even though trade deficit narrowed to a five-month low. Trade deficit narrowed to $13.98 billion in September 2018 as against $17.39 billion in August 2018. However, the overall trade deficit for April- September 2018-19 widened to $94.32 billion as compared to $76.66 billion during April- September 2017-18. 

As per the data released by the Commerce Ministry, exports decreased by 2.15% to $27.95 billion in September 2018, as compared to $28.57 billion in the same month a year ago. In Rupee terms, it was up by 9.65% to Rs 2,01,857.62 crore in September 2018, as compared to Rs 1,84,088.94 crore in September 2017. Cumulative value of exports for the period April- September 2018-19 was $ 164.04 billion as against $145.75 billion, registering a positive growth of 12.54% over the same period last year. In Rupee terms, it was up by 19.93% to Rs 11,25,305.44 crore from Rs 9,38,307.83 crore.

Non-petroleum and Non Gems & Jewellery exports in September 2018 were valued at $19.80 billion as against $20.31 billion in September 2017, a fall of 2.49%. Non-petroleum and Non Gems and Jewellery exports during April- September 2018-19 were valued at $119.05 billion as compared to $107.91 billion for the corresponding period in 2017-18, an increase of 10.32%.

Imports during September 2018, increased by 10.45% to $41.93 billion as compared to $37.96 billion in September 2017, while in rupee terms it was up by 23.78% to Rs 3,02,804.39 crore from Rs 2,44,634.86 crore in September 2017. Cumulative value of imports for the period April- September 2018-19 was $258.36 billion as against $222.42 billion, registering a positive growth of 16.16% over the same period last year. In rupee terms, it was Rs 17,72,283.63 crore, up by 23.78% from Rs 14,31,823.75 crore in the same period last year.

Oil imports during September 2018 were valued at $10.91 billion which was 33.59% higher than oil imports valued at $8.17 billion in September 2017. Oil imports during April- September 2018-19 were valued at $69.73 billion which was 50.05% higher than the oil imports of $46.47 billion in the corresponding period last year. Non-oil imports during September 2018 were estimated at $31.02 billion which was 4.11% higher than non-oil imports of $29.79 billion in September 2017. Non-oil imports during April- September 2018-19 were valued at $188.63 billion which was 7.21% higher than the level of such imports valued at $175.95 billion in April- September, 2017-18.

The CNX Nifty is currently trading at 10571.70, up by 59.20 points or 0.56% after trading in a range of 10525.30 and 10604.90. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.02%, ICICI Bank up by 2.38%, Bharti Infratel up by 2.35%, ONGC up by 2.19% and Axis Bank up by 2.13%. On the flip side, Indiabulls Housing down by 3.83%, Cipla down by 1.21%, NTPC down by 1.21%, HPCL down by 1.18% and HCL Tech down by 1.10% were the top losers.

Asian markets were trading mixed; Hang Seng decreased 174.370 points or 0.69% to 25,270.69, Shanghai Composite decreased 12.14 points or 0.47% to 2,555.96, Straits Times decreased 11.12 points or 0.37% to 3,034.85 and KOSPI decreased 3.74 points or 0.17% to 2,141.38.

On the flip side, Taiwan Weighted increased 79.98 points or 0.8% to 9,981.10, Jakarta Composite increased 9.22 points or 0.16% to 5,736.48 and Nikkei 225 increased 277.94 points or 1.23% to 22,549.24.