Key indices trading flat ahead of inflation data

Indian equity benchmarks were trading flat in early noon session ahead of the release of key macroeconomic numbers. Traders remained cautions as the Agricultural & Processed Food Products Export Development Authority’s (Apeda) data showed that India’s exports of agricultural commodities nosedived by up to a staggering 46 per cent in volume terms due to supply glut in the international market which prompted stockiest to defer their purchase plans amid expectations of further price fall.  On the global front, Asian markets were trading mixed, with focus on new round of China-US trade talks. Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25% from 10%.

Back on streets, Bihar has registered the highest economic growth of 11.3 per cent in the country during 2017-18 and curbed crime to a great extent, thereby providing a better society for its citizens. The states own tax revenue collections is expected to be around Rs 31,000 crore in 2018-19 against Rs 23,136 crore in 2017-18.  On scrip specific development, Axis bank slipped on the bourses as the Specified Undertaking of Unit Trust of India (SUUTI) is planning to off-load up to 3% stake in Axis Bank, which may yield government Rs 5,316 crore. The floor price has been set at Rs 689.52 per share, a discount of around 3% to the February 11 closing price of Rs 710.35 per share.

The BSE Sensex is currently trading at 36380.37, down by 14.66 points or 0.04% after trading in a range of 36312.21 and 36465.40. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index rose 0.21%, while Small cap index was down by 0.34%.

The top gaining sectoral indices on the BSE were Metal up by 2.53%, Energy up by 1.07%, Basic Materials up by 0.86%, PSU up by 0.74% and Oil & Gas up by 0.56%, while IT down by 1.59%, TECK down by 1.50%, Telecom down by 1.26%, FMCG down by 0.09% and Industrials was down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 3.25%, Tata Steel up by 2.63%, Yes Bank up by 1.53%, Coal India up by 1.51% and Sun Pharma was up by 1.24%. On the flip side, Infosys down by 2.13%, HCL Technologies down by 1.72%, TCS down by 1.69%, Hero MotoCorp down by 1.21% and Bajaj Auto was down by 1.18% were the top losers.

Meanwhile, Electronics and IT Secretary Ajay Prakash Sawhney has said that new National Policy on Electronics introduced by government will focus on manufacturing of electronics in India along with positioning the country as a global hub for electronics by creating an enabling environment for the industry to compete globally. He also said that there has been a widening and deepening of the electronics manufacturing ecosystem in the country.

Sawhney stated that apart from various brands coming to the country to set up manufacturing base, their supply chain partners have also started participating. He said ‘I think we have to focus not just on manufacturing, this time we have to focus on exports. Many of our new policies that will replace the schemes that have run the course, they will focus on exports, we will focus on bringing in supply chain partners.’

The Secretary further said that many multi-national companies are already using their Indian outfits for design and R&D of new products and services, and with electronics manufacturing ecosystem now growing strongly, there is a marvelous opportunity. He also said ‘It is important for us to not just manufacture, but to be a part of the global ecosystem... It's important to not just assemble in India but how well we are integrated with the global supply chain and what can we do to move this.’

The CNX Nifty is currently trading at 10892.70, up by 3.90 points or 0.04% after trading in a range of 10862.25 and 10910.90. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing up by 3.65%, Vedanta up by 3.06%, JSW Steel up by 3.04%, Tata Steel up by 2.83% and HPCL was up by 2.20%. On the flip side, Bharti Infratel down by 2.69%, Infosys down by 2.11%, HCL Technologies down by 1.81%, TCS down by 1.57% and Hero MotoCorp was down by 1.49% were the top losers.

Asian market were trading mixed; KOSPI rose 11.50 points or 0.53% to 2,192.23, Taiwan Weighted strengthened 93.49 points or 0.93% to 10,097.74, Shanghai Composite gained 8.38 points or 0.32% to 2,662.28 and Nikkei 225 was up by 543.63 points or 2.67% to 20,876.80.

On the other side, Hang Seng decreased 16.71 points or 0.06% to 28,127.13, Jakarta Composite dropped 68.33 points or 1.05% to 6,426.67and Straits Times was down by 1.51 points or 0.05% to 3,204.76.