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Benchmarks continue to trade in red
Jul-22-2019

Indian bourses continued to trade in red in the late morning session, with the Sensex losing over 290 points and Nifty falling below the 11350 level, amid heavy foreign fund outflow and weak global cues. Profit booking in frontline blue chip stocks such as HDFC, Bajaj Finance and HDFC Bank pulled the markets lower. Realty, Bankex and FMCG stocks were amongst the top losers on the BSE sectoral space. The deficiency in monsoon rain and weak corporate earnings also impacted the risk sentiment.  Traders’ mood got undermined with the Reserve Bank of India’s (RBI) data showing that after touching record highs, the foreign exchange reserves declined by $1.113 billion to $428.797 billion in the week to July 12 - the first fall after four consecutive weeks of gains - due to a fall in foreign currency assets. Investors paid no attention as NITI Aayog Vice Chairman Rajiv Kumar has expressed confidence that India will achieve Gross domestic product (GDP) growth of 8 percent plus from fiscal year 2020-2021 onwards as structural reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) are set to produce the benefits. Meanwhile, Reserve Bank of India (RBI) Executive Director Rabi Mishra stated that the Global financial institutions such as the International Monetary Fund (IMF) and the World Bank should consult developing economies before taking decisions on them.

On the global front, Asian markets were trading mostly in red, as pressured by the rising tensions in the Middle East after Iran's seizure of a British tanker last week might lead to supply disruptions. Back on street, in scrip specific developments, Reliance industries edged up on reporting 7% rise in Q1 consolidated net profit. Axis Bank surged on getting nod to raise funds via various means.

The BSE Sensex is currently trading at 38047.00, down by 290.01 points or 0.76% after trading in a range of 37926.54 and 38333.52. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.65%, while Small cap index was down by 1.12%.

The top gaining sectoral indices on the BSE were Energy up by 0.98%, Metal up by 0.73%, Healthcare up by 0.72%, Auto up by 0.49% and Telecom was up by 0.48%, while Realty down by 2.00%, Bankex down by 1.25%, FMCG down by 0.75%, Consumer Durables down by 0.74% and Capital Goods was down by 0.29% were the losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 6.79%, Vedanta up by 3.48%, Sun Pharma up by 3.43%, Hero MotoCorp up by 2.37% and Asian Paints was up by 1.97%. On the flip side, HDFC down by 4.55%, Bajaj Finance down by 3.58%, HDFC Bank down by 2.82%, Kotak Mahindra Bank down by 2.80% and Hindustan Unilever was down by 1.57% were the top losers.

Meanwhile, the Confederation of Indian Industry (CII) in its the research paper, ‘Indian Exports: The Next Trajectory-  Mapping Products and Destinations’ has said that for India,  there is need to speedily boost a variety of exports ranging from women’s apparel, drugs and furniture to cyclic hydrocarbons, at a time when global trade growth continues to shrink.

CII in its research paper has identified 37 crucial items having the high potential to boost outbound trade, given that these have some export competitiveness and figure significantly in the imports of major importing nations such as the United States and China. The top-37 products from a range of sectors, including apparel, organic chemicals, machinery and mechanical appliances, pharmaceuticals and others have been identified.

India’s overall export share in total global imports of $17,958 billion stands at a mere 1.65%. It also suggested a double-pronged approach of expanding domestic production and undertaking targeted promotion in top importing nations to build exports in these items. It maps India’s current export profile for determining its export competitiveness to these top importing nations.

Besides, it said that India is facing headwinds from the ongoing global trade conflicts at a time when some other countries are capitalising on changing supply chains and the country must step up its export strategy to compete. India’s exports fell by 1.7% in the first quarter of current financial year (Q1FY20) to $81 billion due to an uncertain global trade climate. In FY19, exports had expanded by 8.8% to cross $330 billion.

The CNX Nifty is currently trading at 11337.45, down by 81.80 points or 0.72% after trading in a range of 11301.25 and 11398.15. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 7.69%, Vedanta up by 3.57%, Sun Pharma up by 3.39%, Zee Entertainment up by 2.80% and Bharti Infratel was up by 2.64%. On the flip side, Bajaj Finserv down by 5.37%, HDFC down by 4.52%, Bajaj Finance down by 4.10%, HDFC Bank down by 3.35% and Kotak Mahindra Bank was down by 2.98% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 210.33 points or 0.73% to 28,555.07, Nikkei 225 slipped 59.23 points or 0.28% to 21,407.76, Jakarta Composite lost 28.23 points or 0.44% to 6,428.31, Straits Times trembled 21.69 points or 0.64% to 3,356.27 and Shanghai Composite was down by 22.36 points or 0.76% to 2,901.84.

On the flip side, Taiwan Weighted strengthened 67.40 points or 0.62% to 10,940.59 and KOSPI was up by 1.23 points or 0.06% to 2,095.59.

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