Indices trade lower in morning deals

Indian equity benchmarks traded lower with losses of over half percent in morning deals, dragged by selling in Capital Goods, Energy, FMCG and Utilities stocks. Sentiments remained down-beat amidst the background of rising Covid-19 positive patients, especially in states like Maharashtra and Kerala. Traders overlooked report stated that the GST revenue shortfall faced by states is likely to reduce by about Rs 40,000 crore in the current fiscal on improved collections over the past four months. Investors also paid no heed towards Finance Minister Nirmala Sitharaman’s statement that the Union Budget 2021-22 is about the role of government as a facilitator and the private sector as a key driver of economic growth, without which the country would be losing a big opportunity. Meanwhile, Prime Minister Narendra Modi has made a strong case for repealing archaic laws and making it easier to do business in India, stating that the centre and states need to work closely to boost economic growth.

On the global front, Asian markets were trading mostly in green as expectations for faster economic growth and inflation globally batter bonds and boost commodities, though rising real yields also make equity valuations look more stretched in comparison. Back home, on the sectoral front, fertiliser industry stocks remained in focus as India Ratings and Research (Ind-Ra) said the credit metrics of fertiliser manufacturers in general and urea manufacturers in particular are likely to improve meaningfully in FY22 due to strong likelihood of clearance of subsidy backlogs after allocation of an additional Rs 62,600 crore fertiliser subsidy in the revised estimate of FY21.

The BSE Sensex is currently trading at 50542.43, down by 347.33 points or 0.68% after trading in a range of 50395.48 and 50986.03. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.15%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Metal up by 2.86%, Basic Materials up by 1.20%, Telecom up by 0.65% and Realty up by 0.02%, while Capital Goods down by 1.38%, Energy down by 1.19%, FMCG down by 0.98%, Utilities down by 0.86% and Auto down by 0.80% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.28%, HDFC Bank up by 1.75%, Kotak Mahindra Bank up by 1.07%, Ultratech Cement up by 0.73% and Asian Paints up by 0.47%. On the flip side, ITC down by 3.59%, Larsen & Toubro down by 2.65%, HDFC down by 1.77%, Axis Bank down by 1.71% and Mahindra & Mahindra down by 1.63% were the top losers.

Meanwhile, Minister of State for Civil Aviation Minister Hardeep Singh Puri has said with domestic air traffic expected to increase further in the coming summer season, the government may remove the fare band besides lifting other restrictions. Puri also said domestic air traffic is increasing day by day and has now reached about 3 lakh passengers a day.

Puri also mentioned about various steps taken by this ministry during the COVID-9 pandemic for the benefit of people as well as the aviation sector. He said the fare bands introduced with floor price and ceiling price.

The minister also informed about the UDAN scheme giving details of the bidding process and the routes. The minister said four rounds of biddings have been done and more than 700 routes have been sanctioned. Also, over 300 routes have been operationalised under the scheme.

The CNX Nifty is currently trading at 14897.35, down by 84.40 points or 0.56% after trading in a range of 14854.85 and 15010.10. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.27%, JSW Steel up by 2.93%, Tata Steel up by 2.32%, ONGC up by 2.14% and HDFC Bank up by 1.72%. On the flip side, ITC down by 3.54%, Larsen & Toubro down by 2.84%, Coal India down by 2.44%, HDFC down by 2.01% and Mahindra & Mahindra down by 1.98% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 203.54 points or 0.68% to 30,221.46, Hang Seng increased 140.84 points or 0.46% to 30,785.57, Taiwan Weighted strengthened 120.63 points or 0.74% to 16,462.01, Jakarta Composite soared 68.32 points or 1.1% to 6,300.25 and Straits Times advanced 7.53 points or 0.26% to 2,888.17.

On the flip side, Shanghai Composite declined 2.29 points or 0.06% to 3,693.88 and KOSPI fell 15.12 points or 0.49% to 3,092.50.