Markets trade flat after positive start in early deals amid volatility

Indian equity benchmarks made positive start on Wednesday, but soon turned volatile amid mixed global cues. Markets are trading flat with positive bias in early deals on account of buying in Metal, Realty and Basic Materials stocks. Sentiments got some support as the finance ministry's monthly report said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world. Adding more optimism, Agriculture Minister Narendra Singh Tomar said the government has been pursuing the target of doubling farmers' income by 2022 and several interventions taken are showing a positive impact. Though, some cautiousness prevailed in the markets with report that India recorded 10,510 fresh Covid-19 cases of the coronavirus disease (Covid-19). The country reported a net reduction of 4,984 in active coronavirus cases to bring its count down at 143,416, which is 85.89 per cent lower than the September 18 peak of 1,017,754. India’s share of global active coronavirus cases has declined to 0.56 per cent (one in 179). The caseload tally stands at 10,858,300. The country continues to be second-most-affected globally, and ranks 17th among worst-hit nations by active cases.

On the global front, most of the Asian markets were trading lower as US stocks closed mostly in red overnight. Investors turned cautious as they digested mixed corporate earnings results. However, there was some optimism about more fiscal stimulus and the slowdown in coronavirus infection rates in different parts of the world supported the markets. Taiwan remains closed for the Lunar New Year holidays. Back home, insurance industry stocks were in focus with report that gross premium underwritten by non-life insurers in January grew 6.7 per cent year on year (Y-o-Y) to Rs 18,488 crore compared to Rs 17,333.7 crore in the year ago period. In scrip specific development, Tata Steel advanced after it swung back into black in the December quarter posting a consolidated profit of Rs 4,010.94 crore on the back of increased income.

The BSE Sensex is currently trading at 51358.56, up by 29.48 points or 0.06% after trading in a range of 51168.61 and 51512.86. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.37%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Metal up by 1.00%, Realty up by 0.86%, Basic Materials up by 0.80%, Energy up by 0.49%, Oil & Gas up by 0.44%, while Telecom down by 0.96%, Bankex down by 0.29%, Capital Goods down by 0.12%, Consumer Durables down by 0.08%, Industrials down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.06%, Ultratech Cement up by 1.91%, Bajaj Finance up by 0.99%, HCL Technologies up by 0.86% and Bajaj Auto up by 0.80%. On the flip side, Axis Bank down by 1.02%, Bharti Airtel down by 0.94%, Titan Company down by 0.65%, Larsen & Toubro down by 0.53% and Infosys down by 0.46% were the top losers.

Meanwhile, amid domestic traders complaining alleged violations of FDI norms by foreign online players, Commerce and Industry Minister Piyush Goyal has said that the government is considering to come out with certain clarifications to ensure that the e-commerce sector works in the ‘true spirit’ of the law and rules.

Goyal has stated that the current FDI policy for the e-commerce sector is robust and well-designed. However, he said there are certain complaints from consumers and small retailers about certain practices of the e-commerce companies, which are under investigation. He noted that there is no change in the e-commerce policy per se. The e-commerce policy is robust, well designed and operating in India in several sectors.

The minister further said that the e-commerce companies are supposed to provide an agnostic platform so that buyers and sellers can trade with each other. He said that the buyers and sellers should be given an opportunity to trade with each other as the platform only is a service provider. He said ‘those who break that law will certainly have to respond to our concerns and correct their business practices at the earliest.’

The CNX Nifty is currently trading at 15120.80, up by 11.50 points or 0.08% after trading in a range of 15070.85 and 15168.25. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 2.33%, SBI Life Insurance up by 2.15%, Bajaj Finserv up by 1.97%, Ultratech Cement up by 1.68% and Cipla up by 1.52%. On the flip side, Adani Ports & SEZ down by 2.41%, Axis Bank down by 1.21%, Bharti Airtel down by 1.19%, Titan Company down by 0.65% and HDFC Bank down by 0.50% were the top losers.

Asian markets were trading mostly in red; Nikkei lost 38.14 points or 0.13% to 29,467.79, Straits Times fell 4.77 points or 0.16% to 2,930.50, KOSPI declined 3.11 points or 0.10% to 3,081.56 and Jakarta Composite dropped 4.75 points or 0.08% to 6,176.92. On other hand, Hang Seng surged 543.67 points or 1.84% to 30,019.86 and Shanghai Composite was up by 37.16 points or 1.03% to 3,640.65.