Markets trade lower in early deals after positive opening

Indian equity benchmarks made slightly positive start on Friday tacking global peers. But, soon markets failed to hold the gains and slipped into red territory in early deals due to selling in Realty, Utilities and Power stocks. Traders were concerned as the Federation of Indian Export Organisations (FIEO) said India’s exports growth may slow to 15-17.5% in FY23 but containment of Covid-19 through massive vaccination across the globe and creation of required capacity will be the decisive factors. Adding pessimism, the Centre for Monitoring Indian Economy said that the outbreak of pandemic has led to an increase in the number of households with no earning members making them more vulnerable to the pandemic. Though, downside remained limited with a private report that India can generate $813 billion in revenue creating 152 million jobs, with an investment of $272 billion in agritech and allied segments by 2030, making it the largest private sector industry in the country.

Most of the Asian markets traded higher in thin holiday trade, with some markets set to close early due to Christmas Eve. Underlying sentiment remained supported as another batch of economic data painted a picture of solid U.S. growth. Covid-19 worries continued to ease with a U.K. study suggesting that Omicron infections are less likely to lead to hospitalization despite surging cases. Japanese shares were little changed after November consumer inflation marked the biggest year-on-year rise in nearly two years on surging fuel costs.

Back home, Oil & gas industry stocks were in focus as data on the website of the Petroleum Planning and Analysis Cell (PPAC) showed India's crude oil imports in November rose to their highest level in 10 months as refiners stocked up to boost runs in anticipation of strong demand in the world's third-largest oil consumer and importer. In scrip specific development, Tega Industries gained as its board has given its in-principle approval for setting-up an additional, larger plan in Chile for an estimated cost of Rs 175 crore to cater to the growing Latin American market demand. The project needs to be implemented in the next 24 months.

The BSE Sensex is currently trading at 57052.84, down by 262.44 points or 0.46% after trading in a range of 57020.35 and 57623.69. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.83%, while Small cap index was down by 0.57%.

The only gaining sectoral indices on the BSE were IT up by 0.48%, TECK up by 0.34%, while Realty down by 1.53%, Utilities down by 1.42%, Power down by 1.40%, PSU down by 1.25%, Bankex down by 1.20% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.97%, Tech Mahindra up by 0.47%, Ultratech Cement up by 0.38%, Infosys up by 0.36% and Dr. Reddy's Lab up by 0.36%. On the flip side, Indusind Bank down by 2.29%, Kotak Mahindra Bank down by 1.52%, NTPC down by 1.48%, SBI down by 1.47% and Tata Steel down by 1.26% were the top losers.

Meanwhile, expressing cautiousness, the Federation of Indian Export Organisations (FIEO) has said it will aim for $460-475 billion exports in the next fiscal year, taking a conservative approach, due to emergence of new variants of coronavirus and the existing supply side challenges. FIEO President A Sakthivel said during 2021-22, exports are expected to reach $400 billion. He said the spectacular increase in global trade by about 22 per cent, buoyed by high prices of commodities, as witnessed in 2021 will not be there to provide the tailwind to India's exports. Much will also depend on whether the world would be able to contain COVID-19 through massive vaccination across the globe and be able to create the required vaccine manufacturing capacity.

He added ‘Looking into the emergence of the new variants and supply side challenges at this point of time, we would like to be a little conservative and will aim for an export of $460-475 billion during the next fiscal’. He also expressed hope that the global consumption would go up substantially in 2022, albeit the pandemic is controlled. He highlighted that ‘The good thing with our exports has been a very balanced growth across sectors both in traditional exports as well as sunrise sectors of exports during the current fiscal’. He also said ‘We are hopeful that the same trend will continue particularly as the order booking position of all exporters is extremely encouraging and China plus one policy of global companies is definitely helping our exports’.

Sakthivel said ‘While container shortage has eased due to peak season supplies for Christmas, New Year and Chinese New Year getting over, the same is likely to compound once countries open up after the holiday seasons particularly if the new variant is not brought under control’. Next year also, FIEO feels that exports growth will be widespread and exports to NAFTA, Europe, the Middle East, Oceania will continue to boom particularly as ‘we should look’ at concluding free trade agreements with the UK and UAE soon and similar pacts with Canada and Australia in 2022. Moreover, with increase in the prices of inputs, skyrocketing freight and delays in shipments and payments have resulted in the need for additional credit.

The CNX Nifty is currently trading at 16984.15, down by 88.45 points or 0.52% after trading in a range of 16977.15 and 17155.60. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 2.15%, SBI Life Insurance up by 1.58%, Tech Mahindra up by 0.46%, TCS up by 0.35% and Infosys up by 0.34%. On the flip side, Indusind Bank down by 2.19%, Kotak Mahindra Bank down by 1.61%, SBI down by 1.42%, Tata Motors down by 1.41% and Axis Bank down by 1.41% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 added 21.02 points or 0.07% to 28,819.39, Straits Times gained 10.12 points or 0.33% to 3,106.93, Hang Seng advanced 40.19 points or 0.17% to 23,233.83, Taiwan Weighted surged 48.70 points or 0.27% to 17,995.36, KOSPI rose 17.97 points or 0.60% to 3,016.14 and Jakarta Composite was up by 17.57 points or 0.27% to 6,573.12, while Shanghai Composite was down by 13.73 points or 0.38% to 3,629.61.