Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the IT sector and realty sector witnessing maximum buying interest. Telecom stocks are trading on a negative note.

The BSE Sensex is trading up 27 points (up 0.1%) and the NSE Nifty is trading flat. The BSE Mid Cap index is trading down 0.3%, while the BSE Small Cap index is trading up by 0.1%.

The rupee is trading at 66.78 to the US$.

In the news from macroeconomic space, according to the data released by the Commerce Department, India's global trade increased by 16.32% to US$ 767.9 billion in 2017-18.

The same stood at US$ 660.2 bn in 2016-17.

The total trade with Latin American Countries (LAC) grew by 19.63% and the bilateral trade with LAC including Bolivia, Peru, Chile and Brazil recorded healthy growth in 2017-18 as per the provisional numbers.

In the news from the telecom sector, as per a leading financial daily, Bharti Airtel is said to consider selling stake in the combined company which will be emerging after the long-anticipated merger of Indus Towers into Bharti Infratel.

The two firms in a joint announcement also stated that the new entity, with a valuation of US$ 14.6 billion, will be the world's second-largest telecom tower company after China Tower, and will continue to be listed on Indian stock exchanges.

The merger is expected to close by March 31, 2019.

Speaking of Bharti Airtel, the company has been the victim of loss of pricing power in the sector. As can be seen from the chart below, sliding operating margins had a direct impact on the company's return on equity over the past decade. And the poor operating numbers apart from debt heavy balance sheet weighed on the valuations.

Bharti Airtel's Sliding Valuations

At the time of writing, Bharti Airtel share price was trading down by 2.3% on the BSE.

In the news from commodity space, crude oil prices are witnessing buying interest today and are headed towards the US$ 80 a barrel-mark. The rise in prices is seen on the back of uncertainty over US bailing on Iran nuclear deal, outages in Venezuela, and uptick in demand.

Note that crude oil prices have been witnessing a rising trend of late. However, this is not good news from India's perspective.

As we wrote in one of the editions of The 5 Minute WrapUp...

• Fiscal revenues are at risk. Particularly if the government is forced to consider a cut in fuel excise duties due to a rally in oil prices. In recent times, a sharp jump in excise collections has helped indirect tax collections. Any risk to revenues and subsequent threat to the fiscal deficit target at 3.2% of GDP would require tighter spending cuts.
  
  Secondly, the impact on inflation needs to be monitored. This narrowing the central bank's scope for further rate cuts.
  
  Lastly, low crude prices were a positive growth impetus through higher discretionary incomes for households and lower input costs for manufacturers and farmers. Part of this benefit is likely to be eroded as retail fuel costs rise. As for corporations, expansion in gross margins caused by falling commodity prices is also likely to wane, pressurising profitability.

You can read the entire article here.