Markets trade flat with positive bias

Benchmark indices were trading marginally higher during the morning deals led by gains in Auto, PSU and Power stocks. Some support came with the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary, Anurag Jain’s statement that investors are taking huge interest in the country's startup ecosystem and in the last year, annual fundings into startups have increased from $11 billion to $36 billion. Meanwhile, a private report stated that the rising uncertainty from the third wave of the pandemic will force the forthcoming Budget to push the fiscal pedal more to support the fragile recovery, and print in 6.5 per cent fiscal deficit as the government is likely to budget for around Rs 42 lakh crore of capex next fiscal. However, gains remained capped as some concern came as Engineering Export Promotion Council of India has expressed concern that the spread of Omicron, the new variant of coronavirus, may once again disrupt the global supply chain, which could lead to a slowdown in trading activities. On the global front, Asian markets were trading mixed after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter.

The BSE Sensex is currently trading at 61255.69, up by 32.66 points or 0.05% after trading in a range of 61107.60 and 61360.99. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.26%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Auto up by 1.88%, PSU up by 0.90%, Power up by 0.89%, Utilities up by 0.88% and Oil & Gas up by 0.87%, while Metal down by 1.18%, Healthcare down by 0.71%, Basic Materials down by 0.41%, TECK down by 0.18% and IT down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.81%, SBI up by 1.99%, Mahindra & Mahindra up by 0.87%, NTPC up by 0.85% and TCS up by 0.77%. On the flip side, HCL Technologies down by 5.86%, Dr. Reddy's Lab down by 1.41%, Axis Bank down by 1.14%, Tata Steel down by 1.09% and HDFC Bank down by 0.96% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has assured that full government support to leaders of India's top IT companies in pushing the growth of the sector and taking services exports to $1 trillion in a decade. He stated the country is on track to achieve its merchandise exports target of $400 billion this year, while services exports are likely to be about $240 -250 billion.

Welcoming the IT industry's proposal to start IT hubs in tier-2 and three towns, he said businesses should identify the towns and the centre would assist them in providing all the necessary infrastructure and facilities. He also said the IT industry can make a big contribution to services exports by focusing on new technology and products that can make India a bigger global player in the sector.

Besides, he suggested the industry to focus on high-tech products, for which the government would provide any assistance needed by the sector. He mentioned IT industry had grown spectacularly on its own and many of the top companies grew at a time when India did not focus on creating a favourable ecosystem for startups. He added the Department for Promotion of Industry and Internal Trade (DPIIT) will provide all assistance to push growth and services' exports.

The CNX Nifty is currently trading at 18277.60, up by 21.85 points or 0.12% after trading in a range of 18228.75 and 18304.45. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 5.25%, ONGC up by 3.94%, Maruti Suzuki up by 2.61%, Tata Motors up by 2.49% and SBI up by 1.97%. On the flip side, HCL Technologies down by 5.73%, Coal India down by 1.49%, Dr. Reddy's Lab down by 1.31%, Hindalco down by 1.27% and Cipla down by 1.15% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 228.93 points or 0.81% to 28,353.21, Taiwan Weighted strengthened 90.39 points or 0.49% to 18,493.72, Shanghai Composite gained 20.77 points or 0.59% to 3,542.03 and Straits Times advanced 2.59 points or 0.08% to 3,284.56. On the flip side, Jakarta Composite lost 37.57 points or 0.56% to 6,655.83, KOSPI fell 42.12 points or 1.44% to 2,879.80 and Hang Seng decreased 143.21 points or 0.59% to 24,240.11.