Sensex, Nifty turn red in early noon deals

Local equity benchmarks erased all the gains to turn negative in early noon session. Both Sensex and Nifty were trading below 41,850 and 12,350 marks, respectively. Buying in frontline stocks such as Nestle, Power Grid Corporation and Bharti Airtel were aiding sentiment, while selling in NTPC, Tata Steel and HCL Technologies kept the gains in the markets in check. Sentiments were downbeat with report that exports dropped 1.8% y-o-y in December to $27.36 billion, the fifth straight month of contraction, despite a favourable base, as external headwinds, on top of subdued domestic manufacturing, continue to hurt. However, downfall remain limited with NITI Aayog vice chairman Rajiv Kumar’s statement that the government is likely to take more measures to deal with the problem of financial sector.

On global front, Asian markets were trading mixed after the United States and China signed an initial deal to defuse their 18-month trade war, though financial markets were wary as a number of thorny issues remained unresolved. Back home, in scrip specific development, shares of Jet airways touched lower price band amid reports that the Hinduja Group, that had explored investing in the beleaguered airline, has backed out as it found no value in the company. A Dubai-based fund, too, had evinced interest in investing in the grounded airline, but did not submit an offer.

The BSE Sensex is currently trading at 41849.09, down by 23.64 points or 0.06% after trading in a range of 41812.28 and 42059.45. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.49%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Telecom up by 0.69%, Healthcare up by 0.56%, FMCG up by 0.50%, Realty up by 0.35% and Capital Goods was up by 0.25%, while Metal down by 1.57%, PSU down by 0.54%, Oil & Gas down by 0.42%, IT down by 0.40% and Basic Materials was down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 1.83%, Power Grid Corporation up by 1.31%, Bharti Airtel up by 1.19%, Hindustan Unilever up by 0.94% and Sun Pharma was up by 0.50%. On the flip side, NTPC down by 1.74%, Tata Steel down by 1.60%, HCL Tech down by 1.29%, Hero MotoCorp down by 1.18% and Tech Mahindra was down by 1.14% were the top losers.

Meanwhile, falling for fifth straight month, India’s merchandise exports contracted by 1.80% in December 2019 as compared to same period of last year, on account of a significant fall in shipments of plastic, gems and jewellery, leather products and chemicals. However, trade deficit, gap between imports and exports, narrowed to $11.25 billion in December from $14.49 billion a year ago, helped by lower oil imports. 

As per the data released by the Commerce Ministry, merchandise exports fell by 1.80% to $27.36 billion in December 2019, as compared to $27.86 billion in the same month a year ago. In Rupee terms, it was down by 1.16% to Rs 1,94,764.74 crore in December 2019, as compared to Rs 1,97,044.76 crore in December 2018. Cumulative value of exports for the period April- December 2019-20 was $239.29 billion as against $244.08 billion during the period April- December 2018-19, registering a negative growth of 1.96%. In Rupee terms, it was down by 1.04% to Rs 16,84,558.61 crore from Rs 17,02,261.31 crore.  

Non-petroleum and Non Gems and Jewellery exports in December 2019 were $21.05 billion, as compared to $21.16 billion in December 2018, exhibiting a negative growth of 0.54%. Non-petroleum and Non Gems and Jewellery exports in April- December 2019-20 were $177.81 billion, as compared to $177.65 billion for the corresponding period in 2018-19, an increase of 0.09%.     

On the other hand, Imports during December 2019, decreased by 8.83% to $38.61 billion as compared to $42.35 billion in December 2018, and in rupee terms it was down by 8.24% to Rs 2,74,883.64 crore from Rs 2,99,553.40 crore in December 2018. Cumulative value of imports for the period April- December 2019-20 was $357.39 billion, as against $392.31 billion during the period April- December 2018-19, registering a negative growth of 8.90%. In rupee terms, it was Rs 25,14,783.82 crore, down by 8.12% from Rs 27,37,092.01 crore in the same period last year.    

Oil imports in December 2019 were $10.69 billion, which were 0.83% lower, compared to $10.78 billion in December 2018. Oil imports in April- December 2019-20 were $95.69 billion which were 11.78% lower compared to $108.47 billion, over the same period last year.  Non-oil imports during December 2019 were estimated at $27.92 billion which was 11.56% lower than non-oil imports of $31.57 billion in December 2018. Non-Oil and Non-Gold imports were $25.45 billion in December 2019, down 12.24% over the same period of last year. Non-Oil and Non-Gold imports were $238.64 billion in April- December 2019-20, down 7.90%, over the same period of last year.     

The CNX Nifty is currently trading at 12329.20, down by 14.10 points or 0.11% after trading in a range of 12315.80 and 12389.05. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 2.45%, Nestle up by 1.95%, Power Grid Corporation up by 1.47%, Bharti Airtel up by 1.11% and Hindustan Unilever was up by 0.87%. On the flip side, Coal India down by 2.14%, Vedanta down by 1.91%, NTPC down by 1.78%, Tata Steel down by 1.69% and JSW Steel was down by 1.68% were the top losers.

Asian markets were trading mixed, KOSPI rose 13.70 points or 0.61% to 2,244.68, Hang Seng increased 33.43 points or 0.12% to 28,807.02, Straits Times advanced 10.29 points or 0.32% to 3,267.27 and Nikkei 225 was up by 25.52 points or 0.11% to 23,942.10.

On the flip side, Jakarta Composite lost 6.39 points or 0.1% to 6,276.98, Taiwan Weighted dropped 24.95 points or 0.21% to 12,066.93 and Shanghai Composite declined 10.64 points or 0.34% to 3,079.40.