Markets trade tad higher in early deals

After heavy sell-offs in the last two sessions, Indian equity benchmarks made optimistic start on Wednesday. Markets are trading higher with marginal gains in early deals as poor economic growth outlook raises prospects of further government measures in the Budget. Appreciation in rupee and losses in crude oil prices also supported domestic indices. Some encouragement came in with Union Minister Piyush Goyal’s statement that India is working on ways to have fairer and more equitable terms in its trade relationships with various countries. Also, traders took note of report that the government has set up a National Startup Advisory Council to advise the Centre on measures needed to build a strong ecosystem for nurturing innovation and start-ups in the country. Though, upside remained capped with a private report that direct tax collections between April to January 15 of this fiscal, have shown a negative growth of -6.1 percent.

Global cues also remained supportive as most of the Asian markets were trading in green with some of the markets recovering after a weak start amid concerns about the spread of the deadly coronavirus from China and its potential impact on the global economy. Health officials have already confirmed cases of the coronavirus infection in Thailand, Japan, South Korea and Taiwan. The US too confirmed its first case of the coronavirus in a patient who recently returned from Wuhan, China. On the economic front, Japan will release December numbers for department store sales and condominium sales today.

Back home, on the sectoral front, telecom stocks were buzzing as the Supreme Court agreed to hear telcos' petitions to modify its October 24 order that made them liable to pay up more than Rs 1 trillion of adjusted gross revenue (AGR) dues by January 23. Auto stocks were in focus with Automobile dealers' body FADA stating that retail sales of passenger vehicles in December 2019 declined 9 percent to 2,15,716 units year-on-year, as even the best offers failed to lift weak consumer sentiments. In stock specific development, Bharti Airtel was trading in green after the government approved up to 100 percent FDI in the company.

The BSE Sensex is currently trading at 41440.98, up by 117.17 points or 0.28% after trading in a range of 41425.90 and 41532.29. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.07%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were IT up by 1.37%, TECK up by 1.12%, Healthcare up by 0.84%, Basic Materials up by 0.35% and Telecom was up by 0.22%, while Power down by 1.50%, Utilities down by 1.38%, PSU down by 1.03%, Metal down by 0.56% and Oil & Gas was down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.98%, Sun Pharma Industries up by 1.26%, HCL Technologies up by 1.20%, TCS up by 1.03% and Reliance Industries up by 0.74%. On the flip side, ONGC down by 3.54%, Power Grid Corporation down by 2.92%, NTPC down by 2.86%, Asian Paints down by 1.25% and Maruti Suzuki down by 0.78% were the top losers.

Meanwhile, in order to have fairer and more equitable terms in trade relationships with various countries, the commerce and industry minister Piyush Goyal has said India is working on it. He also called for greater cooperation among various nations to realise the huge growth prospects in the Indian Ocean region and also for tackling the important issue of climate change. He added that the Regional Comprehensive Economic Partnership (RCEP) in its present form was clearly an unworkable agreement. Any pact needs to take into account several factors. He noted that the country is grappling with a huge trade deficit, particularly with China and many other nations in the region.

Referring to India's decision to pull out of the RCEP, Goyal said for the first time, India demonstrated that trade cannot be dictated by diplomacy. He asserted that the RCEP has had to factor in several diversities among partners, but India has serious concerns about climate change and is seeking greater cooperation on fair terms. He said ‘we are like a pivot for the Indian Ocean and we believe this region has huge potential. At the same time, India is very much concerned about the issue of climate change.’

He further said the entire grouping around the Indian Ocean will play a very important role, while keeping in mind fair and equitable distribution. India also expects greater cooperation among various nations on climate change. He said ‘we in India are also working on how to put in place more equitable terms in our trade relations with various countries.’ Besides, the Indian Ocean Rim sees two-thirds of the world's oil shipments pass through its waters and is home to half of the world's container ships that support 2.7 billion people.

The CNX Nifty is currently trading at 12192.80, up by 22.95 points or 0.19% after trading in a range of 12188.90 and 12225.05. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 2.05%, Infosys up by 1.77%, Wipro up by 1.58%, HCL Technologies up by 1.56% and TCS up by 1.45%. On the flip side, Coal India down by 4.18%, ONGC down by 3.71%, Power Grid Corporation down by 3.34%, NTPC down by 3.16% and Zee Entertainment down by 2.16% were the top losers.

Asian markets are trading mostly in green; Hang Seng increased 225.60 points or 0.81% to 28,210.93, Nikkei 225 surged 141.97 points or 0.59% to 24,006.53, KOSPI rose 17.10 points or 0.76% to 2,256.79 and Jakarta Composite soared 12.13 points or 0.19% to 6,250.28. On the flip side, Straits Times trembled 1.64 points or 0.05% to 3,245.53 and Shanghai Composite was down by 7.11 points or 0.23% to 3,045.03.