Markets trade flat in early deals

Indian equity benchmarks made pessimistic start on Friday following weakness in global markets amid escalating geopolitical tensions. Markets trimmed most of their losses and are trading flat in early deals. Investors await the 10 am press conference by Reserve Bank of India (RBI) for further direction. It is expected that Governor Shaktikanta Das will announce an extension of the loan moratorium for term loans for a few more months in the backdrop of extension of the nationwide lockdown till May 31. Some support came in as the government said it has released Rs 92,077 crore towards devolution of central taxes to states for April and May. This is a special gesture to ensure that the states' cash flows remain undisturbed at this crucial time. Though, rising coronavirus cases in India kept gains capped. The country has recorded over 6,000 cases in a single day, taking its total coronavirus count to 118,226. As many as 3,548 people have died from the disease, according to Worldometer data. Also, there was some cautiousness as India Ratings (Ind-Ra) expects most sectors to experience varying degrees of revenue contraction during FY21 due to demand and supply disruptions caused by the novel coronavirus, or COVID-19, pandemic. Meanwhile, India rejected Beijing's claim that Indian troops trespassed into Chinese territory, and accused the People's Liberation Army (PLA) of hindering patrols by Indian soldiers.

On the global front, all the Asian markets are trading in red following the overnight losses on Wall Street and on worries about rising US-China tensions. China said it plans to introduce new national security legislation in Hong Kong, raising fears of fresh protests over the city's autonomy. In addition, China announced it will not set a GDP target for 2020, due to the uncertainty regarding the COVID-19 pandemic. Besides, in an emergency policy meeting, the Bank of Japan (BoJ) said it has decided to launch a new lending facility for small and midsize businesses that are suffering due to the coronavirus pandemic. The BoJ left its benchmark lending rate unchanged at -0.1 percent. Meanwhile, the market in Indonesia is closed for holidays.

Back home, auto stocks were in focus with Union Minister Nitin Gadkari’s statement that the government is set to introduce a vehicle scrappage policy, under which recycling clusters may be established near ports, expressing confidence that India will emerge as the world's leading automobile manufacturing hub in five years. In scrip specific developments, Reliance Industries gained after KKR agreed to pick up 2.32 percent equity stake in Jio Platforms for Rs 11,367 crore. Trent, Godrej Industries and IDFC First Bank rose ahead of their earnings results. On the other hand, Bharti Airtel fell after it acquired a strategic stake in Gurgaon-based AI-focused start-up Voicezen for an undisclosed amount.

The BSE Sensex is currently trading at 30939.73, up by 6.83 points or 0.02% after trading in a range of 30670.54 and 31005.19. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.44%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Energy up by 0.73%, IT up by 0.48%, TECK up by 0.38%, Realty up by 0.37%, Consumer Durables up by 0.37%, while Metal down by 1.52%, Power down by 0.83%, Utilities down by 0.81%, Telecom down by 0.41%, FMCG down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.70%, SBI up by 1.68%, Ultratech Cement up by 1.38%, Tech Mahindra up by 1.11% and Reliance Industries up by 0.85%. On the flip side, Tata Steel down by 1.99%, ITC down by 1.56%, Power Grid down by 1.48%, HCL Tech. down by 1.35% and NTPC down by 1.16% were the top losers.

Meanwhile, in order to make India a self-reliant country and a global supplier, Commerce and Industry Minister Piyush Goyal said that the government has recognised 12 sectors, including auto components, textiles, industrial machinery and furniture, where attention would be given. Goyal said that a self-reliant India will ensure production of quality products on a large scale, fulfil India's requirements and encourage export of surplus production.

He said in these 12 sectors -- food processing; organic farming; iron; aluminium and copper; agro chemicals; electronics; industrial machinery; furniture; leather and shoes; auto parts; textiles; and coveralls, masks, sanitisers and ventilators -- India can become a global supplier. He mentioned ‘we will study these sectors in a focused way so that it can be manufactured in India in a competitive way.... Self-reliant India does not mean that we are getting isolated from the world.’ It will lead to increase in India's share in global trade.

Besides, he said organic farming holds huge demand and if farmers adopt this and increase production of crops like maize and corn, it can help in food security as well as making ethanol, which can be used to blend with oil, to cut India's oil import bill. On iron ore, he said the industry can look at significantly increasing steel production from 100 million tonnes to 300 million tonnes.

The CNX Nifty is currently trading at 9102.90, down by 3.35 points or 0.04% after trading in a range of 9018.65 and 9121.40. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 4.81%, Ultratech Cement up by 1.69%, SBI up by 1.68%, Infosys up by 1.42% and UPL up by 1.28%. On the flip side, Hindalco down by 3.28%, Adani Ports & SEZ down by 2.16%, GAIL India down by 1.82%, Tata Steel down by 1.78% and ITC down by 1.56% were the top losers.

All the Asian markets are trading lower; Nikkei 225 declined 156.33 points or 0.76% to 20,395.98, Straits Times fell 51.64 points or 2.02% to 2,503.70, Hang Seng slipped 1,114.70 points or 4.59% to 23,165.33, Taiwan Weighted plunged 162.11 points or 1.47% to 10,846.20, KOSPI dropped 30.68 points or 1.54% to 1,967.63 and Shanghai Composite was down by 37.47 points or 1.31% to 2,830.45.