Key gauges continue lacklustre trade in morning deals

Indian equity benchmarks continued their lacklustre trade in morning deals amid lingering worries over the emergence of the new COVID variant Omicron. Traders remained cautious with report that as many as 438 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.34 lakh crore. Traders also took a note of Chief Economic Adviser (CEA) K V Subramanian’s statement that BRICS nations need to strengthen cooperation among themselves for supporting the recovery of BRICS economies and maintaining macro-economic and financial stability while protecting against future uncertainties and risks. Meanwhile, Industry body -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the GST Council to rationalise rates and stated that the current rates are not in sync with the demand creation and employment generation in the country.

On the global front, Asian markets were trading mostly in red on renewed concerns about the pace of the global economic recovery amid the detection of a new and possibly vaccine-resistant coronavirus variant in South Africa. Back home, on the sectoral front, stocks related to gem & jewellery sector remained in watch as Commerce and Industry Minister Piyush Goyal asked the gem and jewellery industry to focus on areas like design, diversification of export product basket and lab grown diamonds with a view to boost outbound shipments and job creation.

The BSE Sensex is currently trading at 57123.35, up by 16.20 points or 0.03% after trading in a range of 56382.93 and 57404.03. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.70%, while Small cap index was down by 1.64%.

The top gaining sectoral indices on the BSE were Energy up by 1.24%, Metal up by 1.02%, TECK up by 0.42%, IT up by 0.37% and Healthcare up by 0.10%, while Power down by 1.59%, Utilities down by 1.55%, Consumer Disc down by 1.12%, FMCG down by 1.05% and Industrials down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 2.40%, Reliance Industries up by 2.27%, Dr. Reddy's Lab up by 1.70%, Tata Steel up by 1.58% and TCS up by 1.11%. On the flip side, Nestle down by 1.87%, Asian Paints down by 1.57%, HDFC down by 1.56%, Hindustan Unilever down by 1.27% and Bajaj Auto down by 1.06% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said bilateral trade between India and Canada stands at $10 billion currently and there is tremendous potential to take it to much higher levels. Goyal also said both sides have discussed the possibility of concluding the India-Canada comprehensive economic partnership agreement (CEPA), a kind of free trade pact, in two stages.

Further, he said that agri and food processing, digital innovation, bio sciences, supply chain and logistics, education, skill development and renewable energy are areas of opportunities for businesses in both the countries. He stated India’s competitive advantage in areas like textiles and footwear, and sectors where it has traditional strengths and where ‘we are building modern technologies’ like services sector, agri-tech and edu-tech are showing tremendous potential.

Besides, he said Canadian pension funds have pledged over $55 billion in investments between 2014 and 2020. Out of that, over $32 billion have already been realised. India’s exports to Canada include pharma, iron and steel, chemicals, gem and jewellery, nuclear reactors and boilers. Imports comprise minerals, ores, vegetables, fertiliser, paper and pulp.

The CNX Nifty is currently trading at 17032.70, up by 6.25 points or 0.04% after trading in a range of 16782.40 and 17099.70. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.06%, HCL Technologies up by 2.47%, Reliance Industries up by 2.12%, Dr. Reddy's Lab up by 1.99% and Tata Motors up by 1.66%. On the flip side, Adani Ports &SEZ down by 2.58%, Hero MotoCorp down by 2.25%, Nestle down by 1.95%, ONGC down by 1.84% and HDFC down by 1.59% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 398.45 points or 1.39% to 28,353.17, Hang Seng decreased 124.09 points or 0.52% to 23,956.43, Straits Times trembled 32.53 points or 1.03% to 3,133.74, KOSPI fell 15.70 points or 0.53% to 2,920.74, Taiwan Weighted dropped 7.88 points or 0.05% to 17,361.51 and Shanghai Composite declined 1.39 points or 0.04% to 3,562.70.

On the flip side, Jakarta Composite soared 28.59 points or 0.44% to 6,590.14.