Markets trade in red in early deals

Indian equity benchmarks made pessimistic start on Wednesday amid mixed global cues and caution ahead of the upcoming Budget. Markets are trading deeply in red in early deals due to selling in Metal, Energy and Realty stocks. Some cautiousness came in as India recorded 12,569 fresh cases of the coronavirus disease (Covid-19). The caseload tally stands at 10,690,279. Globally, more than 100 million people have been infected by the virus. The country continues to be second-most-affected globally, and ranks 14th among worst-hit nations by active cases. Traders overlooked report that the IMF projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

On the global front, Asian markets were trading mixed. Investors' sentiment received a boost after the International Monetary Fund or IMF raised its outlook for global economic growth this year to 5.5 percent from 5.2 percent projected earlier. However, gains are modest in most markets as investors remained cautious amid mixed earnings results from major companies and as they looked ahead to the US Federal Reserve's monetary policy decision due later in the day.

Back home, infrastructure stocks were in focus with report that as many as 450 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.28 trillion. in scrip specific development, Tata Steel fell after its plan to sell its Netherlands operations to Swedish steelmaker SSAB AB ran into a hurdle.

The BSE Sensex is currently trading at 47999.43, down by 348.16 points or 0.72% after trading in a range of 47980.91 and 48387.25. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.99%, while Small cap index was down by 0.58%.

The few gaining sectoral indices on the BSE were IT up by 0.42%, TECK up by 0.17%, Capital Goods up by 0.06%, while Metal down by 2.33%, Energy down by 1.63%, Realty down by 1.38%, Bankex down by 1.21%, Oil & Gas down by 1.10% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.47%, Tech Mahindra up by 1.42%, Mahindra & Mahindra up by 1.18%, Larsen & Toubro up by 0.88% and HCL Technologies up by 0.70%. On the flip side, Kotak Mahindra Bank down by 2.02%, Reliance Industries down by 1.94%, Indusind Bank down by 1.83%, Hindustan Unilever down by 1.67% and Bajaj Finserv down by 1.48% were the top losers.

Meanwhile, the latest round of FICCI's Economic Outlook Survey has stated that India's gross domestic product (GDP) is expected to contract by 8 per cent in current financial year (FY21). The annual median growth forecast by the industry body is based on responses from leading economists representing industry, banking and financial services sector. The survey was conducted in January.

The median growth forecast for agriculture and allied activities has been pegged at 3.5 per cent for FY21.  It stated agriculture sector has exhibited significant resilience in the face of the pandemic. Higher rabi acreage, good monsoons, higher reservoir levels and strong growth in tractor sales indicate continued buoyancy in the sector. However, industry and services sector, which were most severely hit due to the pandemic induced economic fallout, are expected to contract by 10 per cent and 9.2 per cent respectively during FY21.

It mentioned the industrial recovery is gaining traction, but the growth is still not broad based. The consumption activity did spur during the festive season as a result of pent-up demand built during the lockdown but sustaining it is important going ahead. Besides, it observed that some of the contact intensive service sectors like tourism, hospitality, entertainment, education, and health sector are yet to see normalcy.

The CNX Nifty is currently trading at 14130.40, down by 108.50 points or 0.76% after trading in a range of 14120.95 and 14237.95. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.55%, ITC up by 2.05%, Tech Mahindra up by 1.54%, Mahindra & Mahindra up by 1.49% and Larsen & Toubro up by 0.99%. On the flip side, Hindalco down by 4.10%, Tata Motors down by 3.44%, Eicher Motors down by 2.95%, IOC down by 2.62% and JSW Steel down by 2.46% were the top losers.

Asian markets were trading mixed; Nikkei surged 100.05 points or 0.35% to 28,646.23, Straits Times gained 9.63 points or 0.33% to 2,955.15, Hang Seng jumped 79.73 points or 0.27% to 29,470.99 and Taiwan Weighted added 24.56 points or 0.16% to 15,683.41. On the other hand, KOSPI lost 2.69 points or 0.09% to 3,137.62, Jakarta Composite fell 30.35 points or 0.49% to 6,109.82 and Shanghai Composite was down by 1.03 points or 0.03% to 3,568.40.