Local equities remain under pressure

Indian equity benchmarks continued trade lower in late afternoon session, with losses of above a percent. The broader indices, mid cap index and small cap index are also trading lower. Sentiments remained down-beat after ICRA in its latest report has said that corporate revenues declined by 31 per cent in the first quarter of current financial year (Q1FY21), but profit margins decreased by a lesser degree to 3.6 per cent in the April-June period. The market participants failed to take support after Union Minister of Commerce and Industry Piyush Goyal has said that exports as well as imports are showing positive trends. He said that the exports are approaching the last year’s levels, after making a sharp dip in April this year due to pandemic.

On the global front, all Asian markets are trading lower after Wall Street had its worst day since June, as investors’ exuberance faltered after a spate of record highs. European markets were trading higher despite falling on Wall Street overnight led by heavy selling of Apple and other technology stocks.

The BSE Sensex is currently trading at 38560.26, down by 430.68 points or 1.10% after trading in a range of 38299.12 and 38729.66. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.23%, while Small cap index was down by 0.65%.

The only gaining sectoral indices on the BSE were Auto up by 0.50%, while Power down by 2.13%, Metal down by 1.66%, Bankex down by 1.43%, Realty down by 1.42% and Utilities was down by 1.38% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.85%, Bajaj Auto up by 0.63%, TCS up by 0.22% and Bajaj Finance up by 0.18%. On the flip side, NTPC down by 2.35%, ITC down by 2.24%, Tata Steel down by 1.98%, ICICI Bank down by 1.92% and Axis Bank down by 1.85% were the top losers.

Meanwhile, highlighting improvement in the country’s global trade, Union Minister of Commerce and Industry Piyush Goyal has said that exports as well as imports are showing positive trends. He said that the exports are approaching the last year’s levels, after making a sharp dip in April this year due to pandemic. Regarding imports, the positive thing is that the Capital Goods imports have not declined, and the reduction in imports has been seen mainly in crude, gold and fertilizers.

Besides, the Minister said that the trade deficit is reducing drastically and share in the global trade is improving, thanks to resilient supply chains, and perseverance and hardwork of exporters. The minister also said that they are trying to generate more reliable and better trade data so that nation can do better planning and frame policies accordingly.

The Minister further said that 24 focus manufacturing sectors have been identified which have the potential to expand, scale-up operations, improve quality, and lead enhancement of Indian share in global trade and value chain. These sectors have capacity to do import substitution and push exports. He said that India is being seen in the world as trusted and resilient partner in global value chain.

The CNX Nifty is currently trading at 11394.75, down by 132.70 points or 1.15% after trading in a range of 11332.85 and 11452.05. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.68%, Bharti Infratel up by 1.46%, Bajaj Auto up by 0.47%, TCS up by 0.23% and Bajaj Finance up by 0.07%. On the flip side, JSW Steel down by 2.76%, UPL down by 2.60%, Adani Ports down by 2.47%, ITC down by 2.30% and NTPC down by 2.25% were the top losers.

All Asian markets are trading lower, Straits Times trembled 23.91 points or 0.94% to 2,507.88, KOSPI fell 27.65 points or 1.15% to 2,368.25, Shanghai Composite declined 29.61 points or 0.87% to 3,355.37, Jakarta Composite lost 40.96 points or 0.78% to 5,239.85, Taiwan Weighted dropped 120.02 points or 0.94% to 12,637.95, Nikkei 225 slipped 260.10 points or 1.11% to 23,205.43 and Hang Seng was up by 312.15 points or 1.25% to 24,695.45.

European markets were trading higher; UK’s FTSE 100 increased 37.88 points or 0.65% to 5,888.74, France’s CAC increased 34.88 points or 0.7% to 5,044.40 and Germany’s DAX was up by 34.01 points or 0.26% to 13,091.78.