Key indices keep head above water in early noon deals

Local equity benchmarks managed to keep their head above water in early noon deals with both Sensex and Nifty were trading above 37,100 and 11,150 marks, respectively. Buying in frontline stocks such as Tata Motors, Power Grid Corporation and Infosys were aiding sentiment, while selling in Sun Pharma, Bharti Airtel and Yes Bank kept the gains in the markets in check. Investors were getting some solace with a report that the India's services exports rose by 6.6 per cent to $17.94 billion in March. Services imports in March too grew by 10.55 per cent to $11.37 billion. The trade balance in services for the month under review is estimated at $6.58 billion. However, gains remain limited as the India Meteorological Department (IMD) has said that the monsoon is likely to be delayed this year as its arrival expected on June 6, five days after its normal onset date. It added that this year, the statistical model forecast suggests that the monsoon onset over Kerala is likely to be slightly delayed.

On global front, Asian markets were trading mostly in red, as confidence was shaken after the U.S. government hit Chinese telecoms giant Huawei with severe sanctions, threatening to further strain Sino-U.S. trade ties. Back on street, sugar stocks edged lower with the US Department of Agriculture’s (USDA) statement that India’s sugar production is likely to decline 8.4% to 30.3 million tonnes for the second straight year in the 2019-20 marketing year that would begin from October because of likely fall in sugarcane output.

The BSE Sensex is currently trading at 37136.63, up by 21.75 points or 0.06% after trading in a range of 37052.30 and 37204.77. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.13%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Realty up by 1.38%, IT up by 0.78%, Power up by 0.71%, TECK up by 0.66% and Utilities was up by 0.60%, while Healthcare down by 0.95%, Telecom down by 0.93%, Capital Goods down by 0.79%, Industrials down by 0.35% and FMCG was down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.89%, Tata Motors - DVR up by 2.16%, Power Grid up by 1.57%, Infosys up by 1.35% and Bajaj Finance was up by 1.30%. On the flip side, Sun Pharma down by 1.99%, Bharti Airtel down by 1.65%, Yes Bank down by 1.39%, Coal India down by 1.27% and Mahindra & Mahindra was down by 1.25% were the top losers.

Meanwhile, India’s merchandise exports fell to a four-month low of 0.64% in April, 2019 as compared to same period of last year, as shipments of engineering goods, gems and jewellery, leather and other products declined, widening the trade deficit to a five-month high. The trade deficit, a gap between exports and imports, expanded to $15.33 billion in April 2019 as compared to $13.72 billion in April 2018.

As per the data released by the Commerce Ministry, merchandise exports grew by 0.64% to $26.07 billion in April 2019, as compared to $25.91 billion in the same month a year ago. In Rupee terms, exports were higher by 6.45% to Rs 1,81,021.34 crore in April 2019, as compared to Rs 1,70,052.96 crore in April 2018. Non-petroleum and Non Gems and Jewellery exports in April 2019 were $19.54 billion, as compared to $19.80 billion in April 2018, exhibiting a negative growth of 1.31%.

On the other hand, imports during April 2019 rose by 4.48% to $41.40 billion as compared to imports of  $39.63 billion in April 2018, and in rupee terms it was up by 10.52% to Rs 2,87,432.93 crore from Rs 2,60,084.67 crore in April 2018.  Oil imports in April 2019 were $11.38 billion, which was 9.26% higher, compared to $10.41 billion in April 2018. Non-oil imports were estimated at $30.02 billion in April 2019, which was 2.78 percent higher, as compared to $29.21 billion in April 2018. Non-Oil and Non-Gold imports were $26.05 billion in April 2019, down 2.19% over the same period of last year. 

The CNX Nifty is currently trading at 11169.40, up by 12.40 points or 0.11% after trading in a range of 11143.35 and 11185.20. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 3.35%, Tata Motors up by 3.10%, Adani Ports &Special up by 2.49%, Power Grid up by 1.85% and JSW Steel was up by 1.69%. On the flip side, Sun Pharma down by 2.36%, Bharti Airtel down by 1.86%, Indiabulls Housing down by 1.52%, Coal India down by 1.25% and Mahindra & Mahindra was down by 1.16% were the top losers.

Asian markets are trading mostly in red; KOSPI fell 27.26 points or 1.3% to 2,065.52, Taiwan Weighted dropped 71.36 points or 0.68% to 10,489.35, Nikkei 225 slipped 145.35 points or 0.69% to 21,043.21, Straits Times trembled 5.69 points or 0.18% to 3,213.08 and Jakarta Composite was down by 63.10 points or 1.06% to 5,917.79.

On the flip side, Shanghai Composite gained 11.26 points or 0.38% to 2,949.94 and Hang Seng was up by 13.25 points or 0.05% to 28,281.96.