Benchmarks continue to trade in negative zone

Indian bourses remained under pressure in afternoon session as selling appeared in metal, power and utilities stocks with Sensex and Nifty tumbling by 221 and 77 points respectively. Sentiments were weighed by caution in global peers ahead of the US Federal Reserve’s interest rate decision. Traders were also worried as global forecasting firm Oxford Economics said retail inflation spike in May might cause the RBI to revisit its focus on growth risks, adding that a rate hike is still unlikely this year. It stated that the underlying dynamics of the May inflation print augur caution and the recovery remains on uncertain ground and with fiscal support in retreat, the RBI will likely be hesitant to remove policy accommodation anytime soon. On the global front, Asian markets were trading mostly lower as another forecast-busting inflation reading spooked investors just as the Federal Reserve kicked off its latest policy meeting.

Back home, on the sectoral front, gems and jewellery shares were in limelight as India's gems and jewellery exports in May 2021 declined by 5 per cent to Rs 21,188 crore ($2.89 billion) compared to the same month in pre-pandemic 2019, due to the disruptions caused by the second Covid wave across the country, according to the Gem and Jewellery Export Promotion Council.

The BSE Sensex is currently trading at 52551.24, down by 221.81 points or 0.42% after trading in a range of 52498.11 and 52816.31. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.49%, while Small cap index was down by 0.41%.

The few gaining sectoral indices on the BSE were FMCG up by 0.32%, Oil & Gas up by 0.26% and Auto was up by 0.05%, while Metal down by 2.07%, Power down by 1.65%, Utilities down by 1.41%, Energy down by 0.97% and Basic Materials was down by 0.96% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.30%, ONGC up by 1.24%, Bajaj Finserv up by 0.92%, Nestle up by 0.68% and Hindustan Unilever was up by 0.49%. On the flip side, Power Grid down by 2.40%, Reliance Industries down by 1.31%, Indusind Bank down by 0.94%, HDFC down by 0.91% and Bharti Airtel was down by 0.89% were the top losers.

Meanwhile, India’s merchandise exports rose by 69.35% in May 2021 as compared to same period of last year, on account of healthy growth in sectors such as engineering, petroleum products and gems and jewellery, even as trade deficit dropped to an eight-month low of $6.28 billion. Exports stood at $19 billion in May last year and at $29.85 billion in May 2019.

As per the data released by the Commerce Ministry, merchandise exports rose by 69.35% to $32.27 billion in May 2021, as compared to $19.05 billion in the same month a year ago. In Rupee terms, it was up by 64% to Rs 2,36,426.16 crore in May 2021, as compared to Rs 1,44,166.01 crore in May 2020.  Cumulative value of exports for the period April- May 2021 was $62.89 billion as against $29.41 billion during the period April- May 2020, registering a positive growth of 113.85%. In Rupee terms, it was up by 108.19% to Rs 4,64,497.92  crore from Rs 2,23,117.42  crore.

Non-petroleum and Non-Gems and Jewellery exports in May 2021 were $23.97 Billion, as compared to $16.36 Billion in May 2020, registering a positive growth of 46.50 per cent. As compared to May 2019, Non-petroleum and Non-Gems and Jewellery exports in May 2021 registered a positive growth of 11.51 per cent. Non-petroleum and Non-Gems and Jewellery exports in April-May 2021 were $47.59 Billion, as compared to $25.44 Billion for the corresponding period in 2020-21, which is an increase of 87.08 per cent. As compared to April-May 2019, Non-petroleum and Non-Gems and Jewellery exports in April-May 2021 registered a positive growth of 15.78 per cent.

On the other hand, imports during May 2021 too increased by 73.64% to $38.55 billion as compared to $22.20 billion in May 2020, while in rupee terms it was up by 68.15% to Rs 2,82,453.56 crore from Rs 1,67,977.68 crore in March 2019. Cumulative value of imports for the period April- May 2021 was $84.27 billion, as against $39.32 billion during the period April- May 2021, registering a positive growth of 114.31%. In rupee terms, it was Rs 6,22,958.62 crore, up by 108.69% from Rs . 2,98,502.76  crore in the same period last year.

Oil imports in May 2021 were $9.45 billion, which were 171.10 % higher, compared to $3.49 billion in May 2020. Oil imports in April- May 2021 were $ 20.32 billion which were 149.44% higher compared to $8.15 billion, over the same period last year. Non-oil imports during May 2021 were estimated at $29.10 billion which was 55.48% higher than non-oil imports of $18.71 billion in May 2020. Non-Oil and Non-Gold imports were $28.42billion in May 2021, up 52.48% over the same period of last year. Non-Oil and Non-Gold imports were $ 57.03 billion in April- May 2021, up 1.55 %, over the same period of last year.

The CNX Nifty is currently trading at 15791.75, down by 77.50 points or 0.49% after trading in a range of 15768.00 and 15880.85. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 1.47%, Mahindra & Mahindra up by 1.29%, ONGC up by 1.20%, Indian Oil Corporation up by 0.99% and Bajaj Finserv was up by 0.96%. On the flip side, Adani Ports down by 4.09%, Tata Steel down by 2.52%, Power Grid down by 2.48%, Hindalco down by 2.41% and JSW Steel was down by 1.97% were the top losers.

Asian markets were trading mostly lower; Taiwan Weighted dropped 63.43 points or 0.37% to 17,307.86, Nikkei 225 slipped 150.29 points or 0.51% to 29,291.01, Straits Times trembled 19.19 points or 0.6% to 3,155.68, Hang Seng decreased 137.65 points or 0.48% to 28,500.88 and Shanghai Composite was down by 30.81 points or 0.87% to 3,525.75.

On the flip side, KOSPI rose 20.05 points or 0.62% to 3,278.68 and Jakarta Composite was up by 0.30 points to 6,089.34.