Benchmarks trade in red in early deals

Key domestic benchmarks are trading in the red in early deals following a negative start on disappointing IIP and CPI data that was released after the market hours on Friday. Index of industrial production (IIP) for May fell 1.6 per cent, versus a growth of 2.3 per cent in April, while  consumer price index (CPI) inched up to 9.87 per cent in June, against 9.31 per cent in May. However, the down-side remained capped on report that foreign direct investment (FDI) into India increased 25 percent year-on-year to $ 2.32 billion in April, the highest level in the past six months, while a survey by industry body CII has said that economic growth in the country may rebound from the next fiscal if government expedites its reform process. Meanwhile, buying in PSU oil marketing companies too supported the sentiments with BPCL, HPCL and IOC all edging higher after hiking the price of petrol by a steep Rs 1.55 a litre, without taxes.

Globally, the US markets remained in positive terrain on Friday taking cues from some better than expected earnings, though the gains were modest as the economic reports were not that encouraging. However, most of the Asian markets turned red after a positive start as investors booked some of the gains garnered in last week. Bucking the trend, Chinese Shanghai was trading with a gain of about one and a half percent after the country’s second-quarter growth data met street expectations. The world’s second-largest economy expanded 7.5 per cent in the second quarter.

Back home, traders opted to remain on sidelines ahead of wholesale inflation data to be released after markets hours. On the sectoral front, realty witnessed the maximum gain in trade followed by capital goods and healthcare while, software, banking and metal remained the top losers on the BSE sectoral space. The broader indices were trading in the green, while the market breadth on the BSE was positive; there were 922 shares on the gaining side against 641 shares on the losing side while 84 shares remain unchanged.

The BSE Sensex opened at 19926.10; about 32 points lower compared to its previous closing of 19958.47 and has touched a high and a low of 19973.64 and 19883.19 respectively. The index is currently trading at 19920.72, down by 37.75 points or 0.19%. There were 15 stocks advancing against 15 declines on the index.

The overall market breadth has made a strong start with 53.24% stocks advancing against 42.80% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices up by 0.33% and 0.32% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 0.68%, Capital Goods up by 0.63%, Health Care up by 0.57%, Oil & Gas up by 0.48% and FMCG up by 0.37%, while IT down by 0.62%, Bankex down by 0.50%, Metal down by 0.41%, Teck down by 0.33% and Power down by 0.30% were the top losers on the sectoral index.

The top gainers on the Sensex were Dr Reddys Lab up by 1.51%, Sterlite Industries up by 1.25%, L&T up by 1.16%, Wipro up by 1.15% and Mahindra & Mahindra up by 0.89%.

On the flip side, Tata Steel was down by 2.07%, Infosys was down by 2.02%, Coal India was down by 1.07%, Tata Power was down by 1.06% and Bajaj Auto was down by 0.84% were the top losers on the Sensex.

Meanwhile, easing pressure on the current account balance, India’s trade deficit narrowed in June to $12.24 billion from a 7-month high, as compared to $20.1 billion a month ago mainly on the back of slowdown in gold imports. The overall trade deficit for April-June 2013 was estimated at $ 50.18 billion which was higher than the deficit of $42.21 billion during same period last fiscal.

India’s exports contracted by 4.6 per cent, for the second consecutive month, to $23.79 billion in June 2013 compared to that in the year-ago period. Moreover, on cumulative basis, value of exports for the period April-June 2013 was $72.45 billion, as against $73.49 billion, registering a negative growth of 1.41 per cent in Dollar terms over the same period last year.

Imports too declined marginally by 0.37 per cent to $36 billion in the month as against $36.16 billion in June 2012. While, on the cumulative basis, imports for the period of April-June 2013 was at $122.63 billion as against $115.70 billion, registering a growth of 5.99 per cent in Dollar terms over the same period last year.

Meanwhile, Oil imports in June grew by 13.74 per cent to $12.76 billion from $11.22 billion in the same period last year. On the other hand non-oil imports declined by 6.7 per cent to $23.2 billion.

Meanwhile, gold become the second biggest item in the country’s import basket, after crude oil, on the back of enormous demand from Indian customers. In a bid to trim down gold demand, Indian government took slew of measures including a 2 percentage point hike in import duty which appeared to have worked as the growth in gold and silver imports slowed to 22.8% year-on-year at $2.45 billion last month. Gold and silver imports had jumped an annual 109% in April and May combined as retail buyers tried to take advantage of sliding global prices.

The CNX Nifty opened at 5,991.20; about 17 points lower as compared to its previous closing of 6,009.00, and has touched a high and a low of 6,010.90 and 5,980.95 respectively.

The index is currently trading at 5,995.50, down by 13.50 points or 0.22%. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were Cairn up by 2.21%, Lupin up by 2.08%, JP Associate up by 1.62%, Dr. Reddy's Laboratories up by 1.60% and Sesa Goa up by 1.45%.

On the flip side, Infosys down by 2.06%, tata Steel down by 2.05%, Tata Power down by 1.06%, Ambuja Cements down by 1.04% and Coal India down by 0.95% were the major losers on the index.

Most of the Asian equity indices were trading in red; Jakarta Composite declined 38.55 points or 0.83% to 4,594.56, KLSE Composite decreased 2.84 points or 0.16% to 1,782.81, KOSPI Composite slipped 2.50 points or 0.13% to 1,867.48 and Taiwan Weighted was down by 9.64 points or 0.12% to 8,210.85.

On the flip side, Shanghai Composite surged 29.86 points or 1.46% to 2,069.34, Hang Seng rose 91.55 points or 0.43% to 21,368.83 and Straits Times was up by 6.66 points or 0.21% to 3,242.72.

Japanese Nikkei remained shut for the trade today on account of public holiday.