Markets trade tad lower in early deals

Indian equity benchmarks made cautious start on Tuesday amid mixed global cues. Indices are lingering around neutral lines with tad lower in early deals due to selling in Metal, Telecom and Basic Materials counters. Traders were concerned with a private report stating that sluggish growth momentum in the December quarter and emerging risk from the third Covid-19 wave may shave 80 basis points (bps) off India’s real gross domestic product (GDP) growth to 9 per cent for FY22. Some cautiousness came in as data from the Reserve Bank of India (RBI) showed outward foreign direct investment by Indian companies fell by over 8 per cent to $2.05 billion in December 2021 in the current fiscal. Rising coronavirus cases also dampen sentiments in the markets. the Union Health Ministry data showed that India saw a single-day rise of 1,79,723 coronavirus infections taking the total tally to 3,57,07,727, including 4,033 cases of the Omicron variant reported across 27 states and union territories so far. though, downside remained capped as a quarterly employment survey released by the Union labour ministry showed that total employment in nine sectors rose to 3.10 crore during the July-September period of 2021, an increase of 2 lakh compared to June quarter last year.

On the global front, Asian markets are trading mixed following the mixed cues from Wall Street overnight, amid a drop in crude oil prices and as traders remain concerned and cautious over the surging cases of the coronavirus Omicron variant in several countries, including the U.S., and its impact on the global economy. Back home, telecom stocks were in focus as a Trai report released showed that telecom service providers' gross revenue declined by 1.36 per cent on a year-on-year basis to Rs 67,300 crore in the July-September 2021 quarter. Insurance industry stocks were in limelight as data from Irdai showed the gross direct premium underwritten by non-life insurance companies grew by 7.3 per cent to Rs 18,953.09 crore in December 2021. In scrip specific development, Vodafone Idea crashed after the company said that the government will own almost 36 per cent in the wireless phone operator after its board approved conversion of dues into equity.

The BSE Sensex is currently trading at 60308.49, down by 87.14 points or 0.14% after trading in a range of 60305.38 and 60571.30. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.22%, while Small cap index was down by 0.05%.

The top gaining sectoral indices on the BSE were IT up by 0.49%, Utilities up by 0.35%, TECK up by 0.25%, Power up by 0.20%, Healthcare up by 0.18%, while Metal down by 2.19%, Telecom down by 0.99%, Basic Materials down by 0.80%, Bankex down by 0.72%, PSU down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.58%, HDFC up by 1.45%, NTPC up by 1.21%, Tech Mahindra up by 0.68% and Sun Pharma up by 0.67%. On the flip side, Tata Steel down by 3.33%, Bajaj Finance down by 1.54%, Kotak Mahindra Bank down by 1.09%, ICICI Bank down by 0.93% and Asian Paints down by 0.64% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data on Outward Foreign Direct Investment (OFDI) for December 2021 has showed that outward foreign direct investment (FDI) by Indian companies fell by over 8 per cent to $2.05 billion in December 2021 in the current fiscal. The domestic companies had invested $2.23 billion in their overseas joint ventures and fully-owned subsidiaries during December 2020 in the previous financial year.

According to the data, of the total investment made by the Indian companies overseas during the month, $1.22 billion was in the form of issuance of guarantees, $464.39 million was equity participation and $367.17 million investment was made through loans. The major investors who infused capital in their overseas ventures included ANI Technologies -- the promoter of mobility solutions provider Ola -- which invested $675 million in its wholly-owned subsidiary in Singapore, and Dr Reddy's investment of $149.99 million in a joint-venture in the US.

The data also showed that Reliance New Energy Solar invested a total of $168.60 million in a JV and wholly-owned subsidiary in Germany and Norway, while energy PSU Gail India infused $70.17 million in a joint-venture and a wholly-owned unit in Myanmar and the US. State-owned oil explorer ONGC invested $74.15 million in five different ventures in various countries during the month.

The CNX Nifty is currently trading at 17990.95, down by 12.35 points or 0.07% after trading in a range of 17969.60 and 18053.90. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 1.82%, HDFC up by 1.46%, NTPC up by 1.02%, Tata Consumer Products up by 0.96% and Tech Mahindra up by 0.93%. On the flip side, Tata Steel down by 2.63%, JSW Steel down by 2.58%, Bajaj Finance down by 1.54%, Kotak Mahindra Bank down by 1.09% and BPCL down by 0.98% were the top losers.

Asian markets are trading mixed; Straits Times rose 12.44 points or 0.39% to 3,239.49, Hang Seng surged 107.95 points or 0.45% to 23,854.49, Taiwan Weighted gained 40.52 points or 0.22% to 18,279.90 and KOSPI added 3.27 points or 0.11% to 2,929.99. On the other hand, Nikkei 225 declined 228.22 points or 0.80% to 28,250.34, Jakarta Composite fell 10.67 points or 0.16% to 6,680.45 and Shanghai Composite was down by 2.70 points or 0.08% to 3,590.82.