Sensex, Nifty trade near neutral lines

Indian equity benchmarks were trading near their neutral lines in late morning session, with both Sensex and Nifty trading in red terrain. Negative cues from other Asian markets impacted sentiments over the Street. Traders got cautious, after businesses that default on filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month from January 1 next year. The street overlooked a private report stating that corporate India handed over an average increment of 8 per cent in 2021, and early estimates reveal that average increment for 2022 is expected to increase to 8.6 per cent in line with a healing economy and improving confidence.

On the global front, Asian markets were trading lower, after Japan's government downgraded its economic assessment amid rising downside risks from the current domestic and overseas infections and negative effects through the supply chains.

The BSE Sensex is currently trading at 59009.56, down by 6.33 points or 0.01% after trading in a range of 58525.89 and 59202.56. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.14%, while Small cap index was down by 0.18%.

The top gaining sectoral indices on the BSE were FMCG up by 1.33%, TECK up by 0.50%, IT up by 0.42%, Realty up by 0.36% and Telecom up by 0.36%, while Metal down by 3.95%, Basic Materials down by 1.95%, Power down by 1.28%, PSU down by 1.24% and Utilities down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.65%, Bajaj Finserv up by 2.26%, ITC up by 1.90%, HCL Tech up by 1.48% and Bajaj Finance up by 1.25%. On the flip side, Tata Steel down by 5.82%, HDFC down by 1.53%, SBI down by 1.30%, Bajaj Auto down by 1.17% and Dr. Reddy's Lab down by 1.03% were the top losers.

Meanwhile, Ministry of Civil Aviation has stated that airlines can now operate a maximum of 85 per cent of their pre-Covid domestic flights instead of the 72.5 per cent allowed till date. The carriers have been operating 72.5 per cent of their pre-Covid domestic flights since August 12, according to the ministry's order.

Between July 5 and August 12, the cap stood at 65 per cent. Between June 1 and July 5, the cap was at 50 per cent. The ministry issued a fresh order, in which it modified the August 12 order stating that 72.5 per cent capacity may be read as 85 per cent capacity.

When the government had resumed the scheduled domestic flights on May 25 last year after a two-month break, the ministry had allowed the carriers to operate not more than 33 per cent of their pre-Covid domestic services. The cap was gradually increased to 80 per cent by December. The 80 per cent cap remained in place till June 1. The ministry had said the May 28 decision to bring down the cap from 80 to 50 per cent from June 1 onwards was taken ‘in view of the sudden surge in the number of active COVID-19 cases across the country, decrease in passenger traffic and the passenger load (occupancy rate) factor.

The CNX Nifty is currently trading at 17563.20, down by 21.95 points or 0.12% after trading in a range of 17425.30 and 17622.75. There were 15 stocks advancing against 34 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.66%, Bajaj Finserv up by 2.46%, ITC up by 1.75%, HCL Tech. up by 1.65% and Britannia up by 1.44%. On the flip side, Tata Steel down by 5.78%, Hindalco down by 4.27%, Eicher Motors down by 3.18%, JSW Steel down by 2.71% and UPL down by 2.23% were the top losers.

Asian markets were trading lower; Hang Seng decreased 964.95 points or 3.87% to 23,955.81, Jakarta Composite lost 71.84 points or 1.17% to 6,061.41 and Straits Times trembled 11.38 points or 0.37% to 3,059.85.