Benchmarks trade lower amid volatility

Fluctuating between gains and losses, Indian equity benchmarks were now trading lower in morning deals, amid mixed global cues. Traders got anxious as Acuite Ratings & Research said India’s FY22 current account deficit faces mild upside risk from high commodity prices. The wider merchandise trade deficits pulled India's Q2FY22 current account into the negative territory. Traders also took a note of Reserve Bank of India (RBI) article stating that the manufacturing sector will need continued policy support for smoother and faster recovery to attain the long-term trend path. It said although the sector may soon attain its pre-COVID level, the process of attaining the long-term trend levels may take some time. It said that just when the manufacturers' outlook started looking up, the COVID-19-induced lockdown measures slowed down the revival process. Meanwhile, the income tax department said more than 4.50 crore tax returns have been processed so far, of the total 6.26 crore ITR filed for the financial year 2020-21. Further, more than 5.41 crore income tax returns (ITRs) filed have been verified and 1.58 crore refunds amounting to Rs 31,857 crore for AY 2021-22 (2020-21 fiscal) have been issued.

On the global front, Asian markets were trading mixed after Fed minutes showed the US rates will be raised if inflation does not ease. Investors globally remained cautious on updates about the Ukraine-Russia conflict. Back home, on the sectoral front, jewelary industry’s stocks remained in watch as industry body GJEPC said Gems and jewellery exports rose by 6.5 per cent to $32.37 billion during April-January this fiscal. The exports stood at $30.40 billion in the same period of the previous year. 

The BSE Sensex is currently trading at 57802.29, down by 194.39 points or 0.34% after trading in a range of 57748.47 and 58346.00. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.21%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were Power up by 1.61%, Utilities up by 1.38%, Oil & Gas up by 0.56%, Auto up by 0.45% and Energy up by 0.38%, while Bankex down by 0.99%, Telecom down by 0.68%, Realty down by 0.45%, TECK down by 0.37% and IT down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corp up by 1.02%, HDFC up by 0.68%, Tech Mahindra up by 0.50%, Reliance Industries up by 0.36% and Titan Company up by 0.26%. On the flip side, Axis Bank down by 1.88%, Indusind Bank down by 1.37%, ICICI Bank down by 1.32%, Ultratech Cement down by 1.09% and Bajaj Finance down by 0.95% were the top losers.

Meanwhile, India and Germany have signed a work plan for cooperation to strengthen quality infrastructure, reduce technical barriers to trade, enhance product safety and strengthen consumer protection. The areas identified for collaboration include mobility, energy, circular economy, smart farming/ agriculture, medical devices, digitalisation (artificial intelligence, Industry 4.0 and other new technology areas), machinery safety, medical devices and equipment and market surveillance. The work plan 2022 was signed during 8th annual meeting of the Indo-German Working Group on Quality Infrastructure, led by the Indian Ministry for Consumer Affairs, Food and Public Distribution, and the German Federal Ministry for Economic Affairs and Energy.

India's consumer affairs secretary Rohit Kumar Singh has underscored the importance of a well-established and robust quality infrastructure which consists of standardisation, technical regulations and market surveillance for the success of the government's initiative to transform India into a global manufacturing hub. Stating that Germany is an important and trusted partner for India, the secretary expressed hope that the Work Plan 2022 signed would pave the way forward for collaboration towards well-functioning and resilient systems of quality infrastructures. He urged involvement of all the relevant stakeholders, such as different ministries, standardisation bodies and industry to learn from each other's approaches on different aspects of quality infrastructure.

Besides, Deniela Bronstrup, Director General, Digital and Innovation Policy at the German Federal Ministry for Economic Affairs and Climate Action (BMWK), said despite the challenging period, both sides continued cooperation under the framework of the Working Group. He stated this is a great sign of strong relations between Germany and India and that both sides can draw benefits from exchange of information and expertise on issues of mutual interest to support bilateral trade.

The CNX Nifty is currently trading at 17250.10, down by 72.10 points or 0.42% after trading in a range of 17248.45 and 17442.90. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.88%, Bajaj Auto up by 1.33%, Hero MotoCorp up by 1.01%, Tata Motors up by 1.01% and ONGC up by 0.89%. On the flip side, Axis Bank down by 1.86%, Indusind Bank down by 1.66%, ICICI Bank down by 1.39%, Ultratech Cement down by 1.12% and Bajaj Finance down by 1.06% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 287.92 points or 1.05% to 27,172.48, Taiwan Weighted dropped 20.54 points or 0.11% to 18,210.93, Hang Seng decreased 154.40 points or 0.62% to 24,564.50 and Jakarta Composite lost 52.56 points or 0.77% to 6,797.64. On the flip side, KOSPI rose 17.02 points or 0.62% to 2,746.70, Shanghai Composite gained 11.99 points or 0.35% to 3,477.82 and Straits Times advanced 12.60 points or 0.37% to 3,451.90.