Benchmarks trade tad lower in early deals

Indian equity benchmarks made pessimistic start on Monday amid weakness in Asian peers. Markets are trading slightly lower in early deals due to selling in Oil & Gas, Energy and Bankex stocks. There was some volatility in the markets due to the scheduled derivatives expiry of July month contracts. Fears of a third wave and the spread of Delta and Delta plus variant also dampen sentiments in markets. Some cautiousness came in as the health ministry India reported 39,742 new Covid-19 cases in the last 24 hours. The Covid-19 death toll rose by 535 deaths in the last 24 hours, with the total reaching 420,551. However, downside remain capped as Commerce and Industry Minister Piyush Goyal expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year. Meanwhile, the provisional commerce ministry data showed that the country's exports grew 45.13 per cent to $22.48 billion during July 1-21 on account of healthy growth in sectors such as gems and jewellery, petroleum and engineering. Imports also rose 64.82 per cent to $31.77 billion in the said period, leaving a trade deficit of $9.29 billion.

On the global front, most of the Asian markets were trading lower ignoring the broadly positive cues from Wall Street on Friday as traders continue to be spooked by the spread of the delta variant of the coronavirus in several markets in the region and across the world, which is expected to slow the pace of the global economic recovery from the pandemic. Traders are now looking ahead to the upcoming monetary policy meeting of the Federal Reserve for direction.

Back home, telecom stocks were in focus as the Supreme Court said the Adjusted Gross Revenue (AGR) related dues payable by telecom majors, including Vodafone Idea and Bharti Airtel, cannot be a subject matter of any future litigation. A bench headed by Justice L Nageswara Rao stated this while dismissing the plea of telcos seeking rectification of alleged errors in the calculation of AGR. In scrip specific development, ITC traded higher as it posted a 28.6% year-on-year (y-o-y) jump in standalone profit for the three months ended 30 June-coming below street expectations.

The BSE Sensex is currently trading at 52948.83, down by 26.97 points or 0.05% after trading in a range of 52783.63 and 53045.81. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.06%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were FMCG up by 0.57%, Consumer Durables up by 0.56%, Realty up by 0.53%, Basic Materials up by 0.51%, Healthcare up by 0.51%, while Oil & Gas down by 0.56%, Energy down by 0.41%, Bankex down by 0.38%, Power down by 0.30%, Auto down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.34%, Titan Company up by 1.27%, Infosys up by 0.84%, Sun Pharma up by 0.71% and Ultratech Cement up by 0.64%. On the flip side, SBI down by 0.98%, HDFC down by 0.85%, Axis Bank down by 0.70%, ICICI Bank down by 0.67% and Maruti Suzuki down by 0.62% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year (FY22). He said India has received highest ever FDI in the Covid-impacted 2020, in contrast with a shrinkage in investment inflows globally. Total FDI, including equity, re-invested earnings and capital, rose 10 per cent to $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.

Further, he said, India's exports too are recording healthy growth and would reach USD 400 billion by the end of the current financial year. During July 1-21, export crossed $22 billion and it is ‘poised to cross $32-33 billion by end of the month (July), which means our run rate is on track to achieve $400 billion of exports target for the first time ever’ Besides, he said that currently India is in talks with 16 countries including the UK, the EU, Australia, Canada, and the UAE for trade agreements.

He stated with some countries, India is working for early harvest agreements which will allow the country to quickly identify areas of mutual interest and progress negotiations faster towards a comprehensive economic partnership agreement, or FTAs. India has inked FTAs with several countries, including Japan, South Korea, Singapore, and ASEAN members. Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them.

The CNX Nifty is currently trading at 15848.80, down by 7.25 points or 0.05% after trading in a range of 15797.00 and 15877.15. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.46%, Divi's Lab up by 1.42%, ITC up by 1.15%, Sun Pharma up by 1.10% and Tata Consumer Products up by 0.94%. On the flip side, JSW Steel down by 1.39%, SBI down by 0.92%, ONGC down by 0.87%, HDFC down by 0.81% and Maruti Suzuki down by 0.77% were the top losers.

Asian markets were trading mostly in red; Straits Times fell 15.08 points or 0.48% to 3,141.97, Hang Seng slipped 806.80 points or 2.95% to 26,515.18, Taiwan Weighted lost 133.26 points or 0.76% to 17,439.66, KOSPI declined 16.09 points or 0.49% to 3,238.33, Shanghai Composite was down by 77.27 points or 2.18% to 3,473.13. On the other hand, Nikkei 225 gained 311.38 points 1.13% to or 27,859.38 and Jakarta Composite rose 3.06 points or 0.05% to 6,104.75.