Key indices turn negative in morning deals

Indian equity benchmarks pared gains to turn negative in morning session, amid mixed cues from their Asian peers. Losses in Telecom, TECK and Bnking sectors also weighed on the sentiment. Traders got anxious 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). However, traders took some support with Agriculture Minister Narendra Singh Tomar’s statement that the government has been pursuing the target of doubling farmers' income by 2022 and several interventions taken are showing a ‘positive impact’. He also said the government has adopted several developmental programmes, schemes, reforms and policies that focus on higher incomes for the farmers.

On the global front, Asian markets were trading mixed as upbeat earnings, hopes of a large U.S. fiscal stimulus and progress in vaccinations fanned optimism about a global recovery from the pandemic. Back home, on the sectoral front, Auto stocks were in focus with a report that retail sales of passenger vehicles fell 4.5 per cent year-on-year to 281,666 units in January 2021 from 294,817 units, in January 2020, after two consecutive months of growth.

The BSE Sensex is currently trading at 51069.27, down by 259.81 points or 0.51% after trading in a range of 51055.66 and 51512.86. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.09%, while Small cap index was down by 0.02%.

The only gaining sectoral index on the BSE was Realty up by 0.87%, while Telecom down by 1.81%, TECK down by 0.76%, Bankex down by 0.68%, Industrials down by 0.60% and IT down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.76%, Ultratech Cement up by 0.76%, Bajaj Finance up by 0.70%, Mahindra & Mahindra up by 0.17% and Hindustan Unilever up by 0.16%. On the flip side, Indusind Bank down by 1.93%, Bharti Airtel down by 1.54%, Axis Bank down by 1.45%, Tech Mahindra down by 1.44% and Titan Company down by 1.32% were the top losers.

Meanwhile, the finance ministry's monthly report has said growth and inflation outlook for 2021-22 (FY22) portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world. The report said the structural reforms and the policy push under the Aatmanirbhar Bharat Mission along with the slew of measures announced in the Union Budget 2021-22 towards achieving broad-based inclusive growth will strengthen the fundamentals of the economy and bring it back on to a strong and sustainable growth path in the year ahead.

Indian economy is estimated to contract 7.7 per cent in the current financial year, mainly due to the coronavirus pandemic. The latest Economic Survey projected growth rate to rebound to 11 per cent during 2012-22 while the Budget estimated real GDP to be between 10-10.5 per cent. The report said the Survey pitched for growth through counter cyclical fiscal policy emphasising that growth alone is the answer to sustaining the public debt burden of the country. Further, the report said the Budget implemented the counter cyclical fiscal policy by raising the target of fiscal deficit to 6.8 per cent of GDP, more than double the FRBM (Fiscal Responsibility and Budget Management) target.

The report noted that various measures taken by the government since March 2020 against the pandemic ensured minimum loss of life. It mentioned early lockdown, health-infra ramp up, gradual unlocking, blanket testing, social distancing, calibrated fiscal stimulus to minimise supply side disruptions and revive demand and structural reforms pursued diligently by government since March, 2020 have now come to fruition to limit the fatality rate to globally one of the lowest at 1.2 per cent. According to the report, with each day ending with positive COVID-19 cases falling to new lows and economic activity levels attaining new peaks, India has worked its way around the pandemic through the will of the brave people and astute policy interventions by the government.

The CNX Nifty is currently trading at 15049.80, down by 59.50 points or 0.39% after trading in a range of 15034.90 and 15168.25. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 1.96%, Bajaj Finserv up by 1.80%, HDFC Life Insurance up by 1.42%, GAIL India up by 1.18% and Ultratech Cement up by 0.99%. On the flip side, Adani Ports &SEZ down by 2.98%, Indusind Bank down by 1.62%, Tech Mahindra down by 1.49%, Bharti Airtel down by 1.48% and Titan Co down by 1.40% were the top losers.

Asian markets were trading mixed; Hang Seng increased 512.53 points or 1.74% to 29,988.72, Shanghai Composite gained 37.16 points or 1.03% to 3,640.65 and KOSPI rose 9.30 points or 0.3% to 3,093.97. On the flip side, Straits Times trembled 3.95 points or 0.13% to 2,931.32, Jakarta Composite lost 5.84 points or 0.09% to 6,175.83 and Nikkei 225 slipped 33.00 points or 0.11% to 29,472.93.