Markets continue to trade in red zone, ahead of RBI board meeting

Indian equity benchmarks continued to trade in red zone in early noon session, with Sensex and Nifty trading below at 36,550 and 10650 levels, respectively, as market participants remained careful ahead of RBI's board meeting later in the day. Selling in frontline blue chip stocks such as Asian Paints, Yes Bank and TCS restricted the markets to go up. Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Sentiments remained dampened as Former Reserve Bank of India Governor Y V Reddy termed the recent trend of rolling out doles for the farm sector, including the Union Budget's basic income scheme, as a 'disturbing trend' which will impact fiscal stability, growth and also Centre-state relations. Traders took note of report that the government is likely to retain the provident fund interest rate at 8.55% despite the decline in interest rates, benefitting over 60 million subscribers of the Employees’ Provident Fund Organisation (EPFO). Meanwhile, India can play a key role in Nepal’s bid to expand its international trade being a close neighbour of the landlocked Himalayan nation. India is already a major trading partner of Nepal with free movement of goods, services and labour.

On the global front, Asian markets were trading in green, as investors grow increasingly confident that China and the United States will eventually hammer out a deal to end their long-running trade war. Back on street, hotel stocks remained in focus as India is the largest employer in the world in tourism sector. The Union Minister of State for Tourism stated that around 8.21 crore people in India were employed in the sector.

The BSE Sensex is currently trading at 35536.93, down by 272.02 points or 0.76% after trading in a range of 35532.79 and 35912.44. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.76%, while Small cap index was down by 0.58%.

The only gaining sectoral indices on the BSE were Realty up by 1.26% and Telecom was up by 0.78%, while FMCG down by 1.46%, Consumer Durables down by 1.33%, Energy down by 1.23%, Auto down by 1.07% and IT was down by 1.06% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.04%, Tata Steel up by 0.94%, Indusind Bank up by 0.59%, SBI up by 0.53% and Larsen & Toubro was up by 0.20%. On the flip side, Asian Paints down by 3.26%, Yes Bank down by 2.45%, TCS down by 2.20%, HCL Technologies down by 2.02% and Hindustan Unilever was down by 1.90% were the top losers.

Meanwhile, continuing its growth trajectory for the fourth straight month, India's exports grew by 3.74 percent to $26.36 billion in January, as exports of gems and jewellery, chemicals and pharmaceuticals increased. The trade deficit narrowed to $14.73 billion in January 2019 as against $15.67 billion in the same month previous year. The overall trade deficit for April- January 2018-19 is estimated at $90.58 billion as compared to $75.73 billion during April- January 2017-18.  

As per the data released by the Commerce Ministry, exports grew by 3.74% to $26.36 billion in January 2019, as compared to $25.41 billion in the same month a year ago. In Rupee terms, exports were higher by 15.31% to Rs 1,86,453.23 crore in January 2019, as compared to Rs 1,61,697.38 crore in January 2018. Cumulative value of exports for the period April- January 2018-19 was $271.80 billion as against $248.18 billion during the period April- January 2017-18, registering a positive growth of 9.52%. In Rupee terms, it was up by 18.77% to Rs 18,98,358.83 crore from Rs 15,98,311.63 crore.

Non-petroleum and Non Gems and Jewellery exports in January 2019 were $19.90 billion, as compared to $18.40 billion in January 2018, exhibiting a positive growth of 8.17%. Non-petroleum and Non Gems and Jewellery exports in April- January 2018-19 were $197.56 billion, as compared to $183.05 billion for the corresponding period in 2017-18, an increase of 7.92%.

Imports during January 2019 grew marginally by 0.01% to $41.09 billion as compared to imports of $41.08 billion in January 2018, while in rupee terms it was up by 11.16% to Rs 2,90,611.86 crore from Rs 2,61,441.48 crore in January 2018. Cumulative value of imports for the period April- January 2018-19 was $427.73 billion, as against $384.42 billion during the period April- January 2017-18, registering a positive growth of 11.27% over the same period last year. In rupee terms, it was Rs 29,87,918.68 crore, up by 20.68% from Rs 24,75,812.40 crore in the same period last year.

Oil imports in January 2019 were $11.24 billion, which was 3.59% higher, compared to $11.66 billion in January 2018. Oil imports in April- January 2018-19 were $119.34 billion which was 36.65% higher as compared to $87.33 billion over the same period last year. Non-oil imports in January 2019 were estimated at $29.85 billion which was 1.43% higher, compared to $29.42 billion in January 2018. Non-oil imports in April- January 2018-19 were $308.39 billion which was 3.80% higher, compared to $297.09 billion in April- January 2017-18. Non-Oil and Non-Gold imports were $27.53 billion in January 2019, down 0.78% over the same period of last year. Non-Oil and Non-Gold imports were $281.42 billion in April- January 2018-19, up 4.69% over the same period of last year.

The CNX Nifty is currently trading at 10640.20, down by 84.20 points or 0.79% after trading in a range of 10639.50 and 10759.90. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 3.54%, Zee Entertainment up by 1.14%, Tech Mahindra up by 1.07%, ONGC up by 1.04% and Tata Steel was up by 0.89%. On the flip side, Asian Paints down by 3.46%, Yes Bank down by 2.81%, Bajaj Finserv down by 2.65%, Coal India down by 2.32% and HPCL was down by 2.24% were the top losers.

All Asian markets were trading in green, Shanghai Composite gained 60.40 points or 2.25% to 2,742.79, Nikkei 225 surged 388.45 points or 1.86% to 21,289.08, Hang Seng increased 477.39 points or 1.71% to 28,378.23, Taiwan Weighted strengthened 84.10 points or 0.84% to 10,148.88, KOSPI rose 12.37 points or 0.56% to 2,208.46, Jakarta Composite soared 76.95 points or 1.2% to 6,466.04 and Straits Times was up by 23.82 points or 0.74% to 3,263.56.