Benchmarks continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in afternoon session, with Sensex and Nifty trading above 37,900 and 11,200 levels respectively. Besides, broader indices were also trading in green, supporting their larger peers. Traders’ mood remained optimistic as Finance Minister Nirmala Sitharaman has exhorted large central public sector enterprises (CPSEs) to achieve 50 percent of their planned capital expenditure (capex) target for FY21 by the month of September in order to support economic growth amidst covid-19 pandemic. Buying in frontline stocks such as NTPC, Bajaj Auto and Tech Mahindra were aiding sentiment, while selling in SBI, Reliance Industries and Axis Bank kept the gains in the markets in check.

On the global front, Asian markets were trading mixed on hopes that capital market reforms would boost revenues and after the central bank injected fresh funds into the country's financial system. Back home, the market breadth remained in favor of advances, as there were 1,538 shares on the gaining side against 1,042 shares on the losing side while 140 shares remain unchanged.

The BSE Sensex is currently trading at 37944.60, up by 67.26 points or 0.18% after trading in a range of 37734.14 and 38119.38. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.21%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Power up by 3.14%, Utilities up by 2.80%, Auto up by 2.19%, Consumer Discretionary up by 1.49% and Realty up by 1.48%, while Energy down by 1.18%, Oil & Gas down by 0.32%, Bankex down by 0.18% were the few losing indices on BSE.

The top gainers on the Sensex were NTPC up by 8.03%, Bajaj Auto up by 4.09%, Tech Mahindra up by 2.74%, Power Grid Corporation up by 2.57% and Larsen & Toubro was up by 2.04%. On the flip side, SBI down by 1.68%, Reliance Industries down by 1.52%, Axis Bank down by 1.07%, HDFC Bank down by 0.56% and ICICI Bank was down by 0.55% were the top losers.

Meanwhile, contracting for the fifth straight month, India’s merchandise exports slipped 10.21% to $23.64 billion in July 2020 as compared to same period of last year, on account of decline in the shipments of petroleum, leather and gems and jewellery items. Trade deficit, gap between imports and exports, narrowed to $4.83 billion in July 2020 from $13.43 billion a year ago. In June, the country had reported its first trade surplus in over 18 years.

As per the data released by the Commerce Ministry, merchandise exports fell by 10.21% to $23.64 billion in July 2020, as compared to $26.33 billion in the same month a year ago. In Rupee terms, it was down by 2.14% to Rs 1,77,305.79 crore in July 2020, as compared to Rs 1,81,190.34 crore in July 2019. Cumulative value of exports for the period April- July 2020-21 was $74.96 billion as against $107.41 billion during the period April- July 2019-20, registering a negative growth of 30.21%. In Rupee terms, it was down by 24% to Rs 5,66,322.06 crore from Rs 7,45,174.85 crore.

Non-petroleum and Non Gems and Jewellery exports in July 2020 were $20.37 billion, as compared to $19.70 billion in July 2019, exhibiting a positive growth of 3.40%. Non-petroleum and Non Gems and Jewellery exports in April- July 2020-21 were $64.29 billion, as compared to $79.81 billion for the corresponding period in 2019-20.

On the other hand, imports during July 2020 too decreased by 28.40% to $28.47 billion as compared to $39.76 billion in July 2019, while in rupee terms it was down by 21.96% to Rs 2,13,499.56 crore from Rs 2,73,579.71 crore in July 2019. Cumulative value of imports for the period April- July 2020-21 was $88.91 billion, as against $166.80 billion during the period April- July 2019-20, registering a negative growth of 46.70%. In rupee terms, it was Rs 6,71,894.74 crore, down by 41.94% from Rs 11,57,232.64 crore in the same period last year. 

Oil imports in July 2020 were $6.53 billion, which were 31.97% lower, compared to $9.60 billion in July 2019. Oil imports in April- July 2020-21 were $19.61 billion which were 55.88% lower compared to $44.45 billion, over the same period last year. Non-oil imports during July 2020 were estimated at $21.94 billion which was 27.26% lower than non-oil imports of $30.16 billion in July 2019. Non-Oil and Non-Gold imports were $20.15 billion in July 2020, down 29.15% over the same period of last year.  Non-Oil and Non-Gold imports were $66.82 billion in April- July 2020-21, down 38.80%, over the same period of last year.

The CNX Nifty is currently trading at 11213.75, up by 35.35 points or 0.32% after trading in a range of 11144.50 and 11248.90. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were NTPC up by 8.71%, Eicher Motors up by 5.53%, Zee Entertainment up by 4.37%, Bajaj Auto up by 4.19% and Hero MotoCorp up by 3.77%. On the flip side, Grasim Industries down by 1.90%, SBI down by 1.76%, BPCL down by 1.51%, Reliance Industries down by 1.49% and Axis Bank down by 1.18% were the top losers.

Asian markets were trading in mixed; Taiwan Weighted strengthened 160.65 points or 1.26% to 12,956.11, Shanghai Composite gained 68.87 points or 2.05% to 3,428.97 and Hang Seng was up by 243.49 points or 0.97% to 25,426.50. On the other hand, Nikkei 225 slipped 192.61 points or 0.83% to 23,096.75 and Straits Times was down by 6.62 points or 0.26% to 2,574.70.