Markets trade flat in early deals ahead of GDP data

Indian equity benchmarks made positive start on Tuesday amid mixed global cues. But, soon markets tuned volatile and are trading flat in early deals due to selling in Auto, Energy and PSU stocks. Some cautiousness also came in ahead of GDP numbers to be out later in the day. The National Statistical Office will release the GDP numbers for the April-June quarter on August 31, 2021. RBI MPC in its 6th August 2021 resolution said that it expects June quarter GDP to grow at 21.4 per cent. However, down side remained caped as exports from special economic zones (SEZs) grew by about 41.5 per cent to Rs 2.15 lakh crore during the April-June quarter of the current fiscal on account of healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors. Traders took note of report that Niti Aayog has suggested to the government to provide tax incentives for investment in InvITs, and bring them under the IBC to attract retail as well as institutional investors to achieve the goals of the National Monetisation Pipeline scheme.

On the global front, most of the Asian markets are trading lower, ignoring the broadly positive cues from Wall Street overnight, amid the uncertainty about the pace of global economic recovery due to surging coronvirus cases in the region and the continuing regulatory clampdown in China. Back home, telecom stocks were in focus as Cellular Operators Association of India said India risks lagging in the rollout of the super-fast fifth-generation wireless networks unless the government makes airwaves cheaper in an upcoming auction, citing the financial stress in the sector. In scrip specific development, BPCL was moving lower after reports that financial bids for the government's entire stake in the fuel retailer-cum-refiner BPCL will come in after September.

The BSE Sensex is currently trading at 56937.24, up by 47.48 points or 0.08% after trading in a range of 56859.10 and 57124.78. 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 0.16%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Telecom up by 1.29%, TECK up by 0.81%, IT up by 0.77%, Utilities up by 0.55%, Healthcare up by 0.54%, while Auto down by 0.57%, Energy down by 0.53%, PSU down by 0.27%, Metal down by 0.24%, Capital Goods down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.93%, HCL Technologies up by 1.55%, Tech Mahindra up by 1.38%, TCS up by 0.80% and Asian Paints up by 0.73%. On the flip side, Mahindra & Mahindra down by 1.26%, Indusind Bank down by 0.83%, Reliance Industries down by 0.79%, SBI down by 0.71% and Maruti Suzuki down by 0.37% were the top losers.

Meanwhile, Niti Aayog has suggested to the government to provide tax incentives for investment in Infrastructure Investment Trusts (InvITs), and bring them under the IBC to attract retail as well as institutional investors to achieve the goals of the National Monetisation Pipeline scheme. The Aayog in consultation with infra line ministries has prepared and released a report on National Monetisation Pipeline (NMP) this month.

It recommended ‘more tax-efficient and user-friendly mechanisms like allowing tax benefits in InvITs as eligible security to invest under Section 54EC of the Income-Tax Act, 1961, are important starting points for initiating retail participation in the instruments.’

Finance Minister Nirmala Sitharaman on August 23 had announced a Rs 6 lakh crore NMP scheme that will look to unlock value in infrastructure assets across sectors, ranging from power to road and railways. She had also said the asset monetisation does not involve the selling of land and it is about monetising brownfield assets.

The CNX Nifty is currently trading at 16925.40, down by 5.65 points or 0.03% after trading in a range of 16915.85 and 16995.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.81%, HCL Technologies up by 1.44%, Tech Mahindra up by 1.17%, TCS up by 0.87% and Adani Ports & SEZ up by 0.68%. On the flip side, Tata Motors down by 1.68%, Mahindra & Mahindra down by 1.23%, Indusind Bank down by 1.08%, Hero MotoCorp down by 0.88% and ONGC down by 0.83% were the top losers.

Asian markets are trading mostly in red; Straits Times declined 44.98 points or 1.45% to 3,057.13, Hang Seng slipped 375.83 points or 1.47% to 25,163.71, Taiwan Weighted lost 68.97 points or 0.40% to 17,327.55, Jakarta Composite fell 16.04 points or 0.26% to 6,128.86 and Shanghai Composite was down by 26.61 points or 0.75% to 3,501.54. On the other hand, Nikkei 225 rose 144.48 points or 0.52% to 27,933.77 and KOSPI added 17.86 points or 0.57% to 3,162.05.