Sensex trades below 27,000 as exports drop for 10 straight months

Markets continue to remain lacklustre after India’s merchandise exports fell for the 10th consecutive month in September this year. Meanwhile, strength in the global peers on firming inflation data and a signs of a strong labour market in US capped the downside.

At 11:40 AM, the Sensex was at 26,48, down by 63 points while the Nifty was at 8,159, down by 20 points. However, BSE Midcap and Smallcap indices are trading flat with a positive bias. The market breadth is weak with 1,093 advances against 1,188 declines on the BSE.

The rupee has depreciated by 14 paise to 64.96 against the US dollar at the Interbank Foreign Exchange on increased demand for the US dollars among importers amid weakness in the local equities.

RESULTS CAPSULE

Among the key results today, Reliance Industries would be keenly watched. So far, the results of bluechips have been muted.

Other companies to announce their Q2 results today are Edelweiss Financial, Foods, NIIT Tech., R. S. Software, Swaraj Engines, Tata Metaliks and Tata Sponge.

STOCK TRENDS

On the sectoral front, BSE FMCG, Metal, Bnakex and Realty indices are trading lower between 0.5-1.5%. However, BSE Power amd Oil & Gas indices are up 0.5%.

Reliance Industries has gained 0.85 ahead of the Q2 results due later today.  

Tata Motors has extended its gains from yesterday and has gained 0.6%. The automobile company reported 21% increase in its global sales, including that of Jaguar Land Rover (JLR) vehicles, at 97,102 units in September.

Oil marketing companies on Thursday announced a rise of 95 paise in diesel rates, but kept the petrol prices unchanged to align the domestic prices with global product prices. Now, diesel will cost Rs 45.9, including local taxes, in Delhi. The new rates will be effective from Thursday midnight. BPCL , HPCL, IOC, OIL have all gained between 0.5-2% each on the Sensex.

Bharti Airtel (1.2%) and Idea Cellular (0.5%) have lost sheen after the sector regulator indicated that the telecom operators may have to pay consumers Re 1 as compensation for every call drop experienced.

The Australian environment ministry on Thursday cleared the way for Adani Group’s $7-billion Carmichael mine and rail project in the Queensland province. Adani Enterprises has extended the gains and is up 2.6%.

With uncertainty looming over its alumina refinery at Lanjigarh in Odisha's Kalahandi district, Vedanta has started laying off workers at its one-million tonne per annum alumina plant. The stock is down over 1%.

ITC has dropped over 1% after rating firm CLSA cut its outlook to “sell” from “underperform” and kept its target price at Rs.315 per share.