Markets under pressure in afternoon trade

In line with Asian peers, Indian equity benchmarks continued their weak trade in afternoon session with Sensex and Nifty trading below their psychological levels of 48,500 and 14,600, respectively. Sentiments were under pressure after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, little changed from March's reading of 55.4. Meanwhile, according to RBI data India Inc's external commercial borrowings jumped by over 24 per cent to $9.23 billion in March this year. Indian firms had raised $7.44 billion from the foreign market in the same period a year ago.

On the global front, Asian markets were trading lower as some of the major markets are closed for a public holiday and on intensified concerns over surge in covid infections in Asia and the possibility of lockdowns in several markets. Back home, the BSE Sensex is currently trading at 48465.76, down by 316.60 points or 0.65% after trading in a range of 48028.07 and 48613.29. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.25%, while Small cap index was up by 1.24%.

The top gaining sectoral indices on the BSE were Telecom up by 1.39%, FMCG up by 1.31%, Power up by 0.86%, Basic Materials up by 0.75%, Metal was up by 0.67%, while Consumer Durables down by 1.68%, Energy down by 1.51%, Bankex down by 1.45%, Realty down by 1.33% and Oil & Gas was down by 1.04% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.28%, Hindustan Unilever up by 2.15%, Bharti Airtel up by 1.50%, Nestle up by 1.35% and Bajaj Auto was up by 1.33%. On the flip side, Titan Company down by 3.99%, Axis Bank down by 2.31%, Reliance Industries down by 2.15%, SBI down by 1.94% and Indusind Bank was down by 1.87% were the top losers.

Meanwhile, Ministry of Commerce & Industry in its latest data has showed that India’s merchandise exports in April 2021 stood at $30.21 billion, an increase of 197.03% over $10.17 billion in April 2020 and an increase of 16.03% over $26.04 billion in April 2019. India’s merchandise imports in April 2021 came in at $45.45 billion, with an increase of 165.99% over $17.09 billion in April 2020 and an increase of 7.22% over $42.39 billion in April 2019.

Thus, India is a net importer in April 2021 with a trade deficit of $15.24 billion, which increased by 120.34% over trade deficit of $6.92 billion in April 2020 and declined by 6.81% over trade deficit of $16.35 billion in April 2019. In April 2021, the value of non-petroleum exports was $26.85 billion, registering a positive growth of 200.62% over $8.93 billion in April 2020 and a positive growth of 19.44% over $22.48 billion in April 2019. The value of non-petroleum and non-gems and jewellery exports in April 2021 was $23.51 billion, registering a positive growth of 164.28% over $8.90 billion in April 2020 and a positive growth of 19.89% over $19.61 billion in April 2019.

In April 2021, Oil imports was $10.8 billion, a positive growth of 132.26% compared to $4.65 billion in April 2020 and a negative growth of 6.62 compared to $11.56 billion in April 2019. Non-oil imports in April 2021 was estimated at $34.65 billion, showing an increase of 178.6% compared to $12.44 billion in April 2020 and an increase of 12.42% compared to $30.82 billion in April 2019. Non-oil, non-GJ (gold, silver &Precious metals) imports was $26.05 billion in April 2021, recording a positive growth of 111.3%, as compared to non-oil and non-GJ imports of $12.33 billion in April 2020 and a positive growth of 6.48% over $24.46 billion in April 2019.

The CNX Nifty is currently trading at 14551.00, down by 80.10 points or 0.55% after trading in a range of 14416.25 and 14594.40. There were 26 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.89%, Adani Ports up by 2.25%, Hindustan Unilever up by 2.19%, Maruti Suzuki up by 2.08% and Bharti Airtel was up by 1.53%. On the flip side, Titan Company down by 4.06%, Axis Bank down by 2.57%, Reliance Industries down by 2.16%, SBI down by 2.02% and Indusind Bank was down by 1.91% were the top losers.

Asian markets were trading lower; Hang Seng decreased 407.13 points or 1.42% to 28,317.75, Jakarta Composite lost 45.62 points or 0.76% to 5,950.00, Taiwan Weighted dropped 344.31 points or 1.96% to 17,222.35, KOSPI fell 19.98 points or 0.63% to 3,127.88 and Straits Times was down by 41.26 points or 1.28% to 3,177.01.