Weak trade continues over Dalal Street

Weak trade continued over the Dalal Street in late morning session, with both Sensex and Nifty trading in red terrain, despite positive cues from other Asian markets. Sentiments remained negative, as India's services sector lost momentum in July as demand was curtailed by competitive pressures, elevated inflation and unfavourable weather. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 59.2 in June to 55.5 in July, pointing to the slowest rate of growth in four months. Some concerns also came after minister of state for finance Bhagwat K Karad said that the government is not planning to introduce any bill to make amendments to facilitate the privatisation of public sector banks in the ongoing monsoon session.

On the global front, Asian markets were trading mostly in green, after China's service sector growth gained momentum in July driven by a recovery in operating conditions and client demand following the easing of the pandemic related restrictions. The data released by S&P Global showed that the Caixin services Purchasing Managers' Index rose to 55.5 in July from 54.5 in June. A score above 50.0 indicates expansion in the sector. The indicator signaled the sharpest pace of expansion in the sector since April 2021.

The BSE Sensex is currently trading at 57952.45, down by 183.91 points or 0.32% after trading in a range of 57788.78 and 58307.33. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.01%, while Small cap index was down by 0.58%.

The only gaining sectoral indices on the BSE were IT up by 0.76% and TECK up by 0.57%, while Telecom down by 1.79%, Auto down by 1.48%, Capital Goods down by 1.32%, Industrials down by 1.11% and Oil & Gas down by 1.08% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 0.96%, Tech Mahindra up by 0.92%, Infosys up by 0.67%, HCL Tech up by 0.64% and Wipro up by 0.45%. On the flip side, Maruti Suzuki down by 2.44%, Kotak Mahindra Bank down by 2.04%, Bajaj Finance down by 1.34%, Ultratech Cement down by 1.32% and Sun Pharma down by 1.32% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India's merchandise exports dipped marginally by 0.76 per cent to $35.24 billion in July 2022, though the trade deficit tripled to $31.02 billion during the month. The country's merchandise exports stood at $35.51 billion in July 2021. The previous decline in exports was recorded in February 2021 when the shipments had dipped by 0.4 per cent. However, the exports in April-July 2022-23 stood at $156.41 billion, an increase of 19.35 per cent over $131.06 billion in the corresponding period last fiscal. 

India’s merchandise import in July 2022 was $66.26 billion, an increase of 43.59% over $46.15 billion in July 2021. India’s merchandise imports in April -July 2022-23 was $256.43 billion with an increase of 48.12% over $173.12 billion in April -July 2021-22. Imports of crude and petroleum products during July this year was $21.13 billion, up 70.4 per cent compared to $12.4 billion in July 2021. Imports of coal, coke and briquettes were up 164.43 per cent while that of vegetable oil rose 47.18 per cent. Inbound shipments of gold, however, declined by 43.6 per cent to $2.37 billion compared to 4.2 billion in July 2021.

Value of non-petroleum exports in July 2022 was $29.82 billion, registering a positive growth of only 0.48% over non-petroleum exports of $29.67 billion in July 2021. The cumulative value of non-petroleum exports in April -July 2022-23 was $ 123.90 billion, an increase of 10.3% over $ 112.32 billion in April -July 2021-22. Value of non-petroleum and non-gems and jewellery exports in July 2022 was $26.54 billion, registering a positive growth of 1.24% over non-petroleum and non-gems and jewellery exports of $ 26.21 billion in July 2021. The cumulative value of non-petroleum and non-gems and jewellery exports in April -July 2022-23 was $ 110.39 billion, an increase of 10.73% over cumulative value of non-petroleum and non-gems and jewellery exports of $ 99.69 billion in April -July 2021-22.

Value of non-petroleum imports was $45.13 billion in July 2022 with a positive growth of 33.74% over non-petroleum imports of $ 33.74 billion in July 2021.The cumulative value of non-petroleum imports in April -July 2022-23 was $174.39 billion, showing an increase of 34.35% compared to non-oil imports of $129.81 billion in April -July 2021-22. Value of non-oil, non-GJ (gold, silver & Precious metals) imports was $38.44 billion in July 2022 with a positive growth of 42.88% over non-oil and non-GJ imports of $26.9 billion in July 2021.Non-oil, non-GJ (Gold, Silver & Precious Metals) imports in April -July 2022-23 was $147.55 billion, recording a positive growth of 36.93%, as compared to non-oil and non-GJ imports of $107.75 billion in April -July 2021-22.

The CNX Nifty is currently trading at 17265.25, down by 80.20 points or 0.46% after trading in a range of 17225.85 and 17385.00. There were 12 stocks advancing against 37 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Cipla up by 1.95%, TCS up by 0.95%, Tech Mahindra up by 0.87%, Wipro up by 0.56% and Infosys up by 0.50%. On the flip side, Maruti Suzuki down by 2.67%, Tata Motors down by 2.43%, Kotak Mahindra Bank down by 2.01%, UPL down by 1.62% and Ultratech Cement down by 1.57% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 147.17 points or 0.53% to 27,741.90, Hang Seng increased 23.07 points or 0.12% to 19,712.28, Jakarta Composite soared 33.86 points or 0.48% to 7,022.02, KOSPI rose 17.10 points or 0.7% to 2,456.72, Shanghai Composite gained 12.85 points or 0.4% to 3,199.12 and Straits Times advanced 14.26 points or 0.44% to 3,253.41. On the flip side, Taiwan Weighted dropped 29.79 points or 0.20% to 14,777.02.