Benchmarks trade tad lower in early deals

Indian equity benchmarks made cautious start on Wednesday tracking mixed cues from global markets. Domestic indices are hovering near neutral lines. Markets are trading tad lower in early deals due to selling in IT, TECK and Energy stocks, whereas buying in Bankex, Metal and Oil & Gas kept downside in check. The rapidly rising cases of covid-19 in the country weighted down on the indices. According to the Union health ministry's data updated a total of 1,892 cases of Omicron variant of coronavirus have been detected across 23 states and Union Territories so far. India's Covid tally rose to 3,49,60,261 with 37,379 new cases, while the active cases increased to 1,71,830. Some cautiousness also came in as a private report indicated that growth might be impacted by up to 0.30 per cent in the March quarter as normal economic activities come under pressure due to restrictions being imposed by more states to curb rising Omicron cases. However, downside remained capped as State Bank of India former chairman Rajnish Kumar said the country needs to accelerate economic growth to above eight per cent to achieve its target of becoming a $5-trillion economy by 2025. Investors are eyeing services PMI data to be out later in the day.

Most of the Asian markets traded lower as Covid-19 worries lingered and investors awaited the minutes from the U.S. Federal Reserve's latest meeting for clues on the central bank's interest rate hike moves. Geopolitical tensions also remained in investors' radar after North Korea reportedly fired a suspected ballistic missile off its east coast. Back home, road sector stocks were in focus as domestic rating agency Icra said the Indian road logistic sector is likely to witness healthy growth in FY2022 on the back of demand recovery and improved business activities. In scrip specific development, Thermax rallied after it sealed an order worth Rs 545.6 crore from an Indian power public sector company to set up flue gas desulphurisation (FGD) systems for their two units of 500 MW capacity each in the state of Uttar Pradesh, India.

The BSE Sensex is currently trading at 59755.31, down by 100.62 points or 0.17% after trading in a range of 59661.38 and 59942.84. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.13%, while Small cap index was down by 0.34%.

The top gaining sectoral indices on the BSE were Bankex up by 0.56%, Metal up by 0.54%, Oil & Gas up by 0.52%, Basic Materials up by 0.38%, PSU up by 0.25%, while IT down by 1.37%, TECK down by 1.24%, Energy down by 0.38%, Telecom down by 0.35%, Healthcare down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.55%, Bajaj Finserv up by 1.20%, Ultratech Cement up by 1.11%, ICICI Bank up by 0.74% and HDFC Bank up by 0.72%. On the flip side, HCL Technologies down by 2.31%, Tech Mahindra down by 2.16%, Wipro down by 1.67%, Infosys down by 1.47% and Indusind Bank down by 1.13% were the top losers.

Meanwhile, the commerce ministry is planning to launch Brand India Campaign to give momentum to exports of both services and products in new markets, as the country’s outbound shipments all set to cross $400 billion this fiscal year. This campaign would serve as an ‘umbrella campaign’ for promoting goods and services exported by India. In the initial stage, the campaign would focus on Indian exports in specific sectors such as gems and jewellery, textiles, plantation products (tea, coffee, spices), education, healthcare, pharma, and engineering. It would essentially focus on quality, heritage, technology, value, and innovation.

The need for such a uniform campaign is necessary because at present, different sectors have been promoted with individual identities in different ways. The campaign approach would include focused export-oriented messaging to both buyers and consumers; new potential markets; Indian talent, tradition and modernity; and promotional events through digital channels and international events. An agency will be selected and a Branding Steering Committee will be formed for the purpose besides creation of uniform logo identity, development of branding creatives (films, TVCs, print ads, digital banners).

Commerce and Industry Minister Piyush Goyal has recently reviewed the status of Brand India Campaign of India Brand Equity Foundation (IBEF). IBEF is a trust established by Department of Commerce with the primary objective of promoting and creating international awareness of the ‘Made in India’ label in markets overseas and to facilitate dissemination of knowledge of Indian products and services.

The CNX Nifty is currently trading at 17796.50, down by 8.75 points or 0.05% after trading in a range of 17748.85 and 17829.65. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were IOC up by 2.37%, Bajaj Finance up by 2.30%, Eicher Motors up by 1.21%, Bajaj Auto up by 1.08% and Ultratech Cement up by 1.04%. On the flip side, Tech Mahindra down by 2.23%, HCL Technologies down by 1.95%, Infosys down by 1.48%, Wipro down by 1.34% and Tata Consumer Products down by 1.28% were the top losers.

Asian markets are trading mostly in red; Straits Times fell 7.55 points or 0.24% to 3,173.58, Hang Seng slipped 204.41 points or 0.88% to 23,085.43, Taiwan Weighted declined 54.18 points or 0.29% to 18,472.17, KOSPI lost 40.77 points or 1.36% to 2,948.47, Jakarta Composite dropped 31.84 points or 0.48% to 6,663.53 and Shanghai Composite was down by 29.59 points or 0.81% to 3,602.74, while Nikkei 225 rose 19.55 points or 0.07% to 29,321.34.