Benchmarks trim losses in early noon deals

Indian equity benchmarks trimmed some of their losses in early noon session, but continued to trade below the neutral lines amid oil prices surged after attacks on key oil producer Saudi Arabia’s crude facilities over the weekend. Sell off in Oil & Gas and Energy stocks along with mixed cues from other Asian counters also weighed on the markets. Sentiments got undermined with Former Prime Minister Manmohan Singh’s statement that the government should have taken chief ministers’ views before changing the terms of reference of the 15th Finance Commission, adding that unilateralism is not good for federal policy and cooperative federalism. However, downside remained limited as finance minister Nirmala Sitharaman announced reforms to boost the export and housing sector in the country. She announced a slew of measures including a new attractive scheme to refund the duties and taxes on exports that will replace all existing schemes in a bid to stimulate exports and the economy. The revenue forgone is projected at upto Rs 50,000 crore.

On the global front, Asian markets were trading mixed, as global crude futures surged following the multiple drone attacks over the weekend on Saudi Arabian oil facilities. The negative cues from Wall Street amid accelerated fears on slowdown in global economic growth also dulled market sentiments. In scrip specific developments, shares of Prabhat Dairy fall after the company's board approved and recommended its delisting proposal. The company has recently completed the sale of its dairy business undertaking by way of slump sale along with the sale of its 100 per cent shareholding in Sunfresh Agro Industries (stepdown subsidiary of company). However, Lupin gained on getting Health Canada’s nod for Propranolol Hydrochloride ER Capsules.

The BSE Sensex is currently trading at 37255.63, down by 129.36 points or 0.35% after trading in a range of 37111.29 and 37302.06. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.03%, Healthcare up by 0.62%, FMCG up by 0.51%, TECK up by 0.14% and Basic Materials was up by 0.13%, while Oil & Gas down by 1.26%, Energy down by 1.21%, PSU down by 0.87%, Power down by 0.45%, Capital Goods was down by 0.33% were the losing indices on BSE.

The top gainers on the Sensex were ONGC up by 1.24%, Hindustan Unilever up by 0.81%, Tech Mahindra up by 0.71%, Sun Pharma up by 0.66% and TCS was up by 0.54%. On the flip side, Asian Paints down by 2.16%, HDFC down by 1.71%, Yes Bank down by 1.17%, SBI down by 1.17% and Tata Steel was down by 0.98% were the top losers.

Meanwhile, India’s merchandise exports dropped by 6.05% in August 2019 as compared to same period of last year, on the back of significant dip in shipments from key sectors like petroleum, engineering, leather, and gems & jewellery. Trade deficit, gap between imports and exports, narrowed to $13.45 billion in August from $17.92 billion a year ago.

As per the data released by the Commerce Ministry, merchandise exports increased by 6.05% to $26.13 billion in August 2019, as compared to $27.81 billion in the same month a year ago. In Rupee terms, it was down by 3.89% to Rs 1,85,881.11 crore in August 2019, as compared to Rs 1,93,397.12 crore in August 2018. Cumulative value of exports for the period April- August 2019-20 was $133.54 billion as against $135.62 billion during the period April- August 2018-19, registering a negative growth of 1.53%. In Rupee terms, it was up by 1.18% to Rs 9,31,055.96 crore from Rs 9,20,240.02 crore.

Non-petroleum and Non Gems and Jewellery exports in August 2019 were $19.60 billion, as compared to $20.76 billion in August 2018, exhibiting a negative growth of 5.61%.  Non-petroleum and Non Gems and Jewellery exports in April- August 2019-20 were $99.41 billion, as compared to $99.17 billion for the corresponding period in 2018-19, an increase of 0.24%.  

On the other hand, Imports during August 2019, decreased by 13.45% to $39.58 billion as compared to $45.73 billion in August 2018, and in rupee terms it was down by 11.46% to Rs 2,81,606.41 crore from Rs 3,18,043.86 crore in August 2018.  Cumulative value of imports for the period April- August 2019-20 was $206.39 billion, as against $218.81 billion during the period April- August 2018-19, registering a negative growth of 5.68%. In rupee terms, it was Rs 14,38,839.05 crore, down by 3.15% from Rs 14,85,661.27 crore in the same period last year.      

Oil imports in August 2019 were $10.88 billion, which was 8.90% lower, compared to $11.94 billion in August 2018. Oil imports in April- August 2019-20 were $55.33 billion which was 6.34% lower compared to $59.07 billion, over the same period last year.  Non-oil imports during August 2019 were estimated at $28.71 billion which was 15.05% lower than non-oil imports of $33.79 billion in August 2018. Non-Oil and Non-Gold imports were $ 27.34 billion in August 2019, down 9.33% over the same period of last year. Non-Oil and Non-Gold imports were $136.53 billion in April- August 2019-20, down 5.64%, over the same period of last year.

The CNX Nifty is currently trading at 11046.45, down by 29.45 points or 0.27% after trading in a range of 10988.80 and 11052.70. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.09%, Titan Company up by 2.01%, Indiabulls Housing up by 1.55%, ONGC up by 1.24% and Grasim Industries was up by 1.05%. On the flip side, BPCL down by 5.36%, Asian Paints down by 2.19%, Indian Oil Corporation down by 2.19%, HDFC down by 1.63% and Bharti Infratel was down by 1.53% were the top losers.

Asian markets were trading mixed; KOSPI rose 9.52 points or 0.46% to 2,058.72, Shanghai Composite gained 0.74 points or 0.02% to 3,031.98 and Taiwan Weighted was up by 56.76 points or 0.52% to 10,884.31. On the flip side, Jakarta Composite lost 115.56 points or 1.82% to 6,219.28, Straits Times trembled 1.77 points or 0.06% to 3,209.72 and Hang Seng was down by 299.91 points or 1.1% to 27,052.78.