Markets trade in fine-fettle in early deals as buying resumes after recent fall

Indian equity benchmarks snapped their 5-day losing streak with optimistic start on Wednesday. Markets are trading in fine-fettle with gains of over half a percent each in early deals as buying resumed after recent market slide. Some support came as the commerce ministry data showed that the country’s merchandise exports rose by 26.4 per cent to $25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals. The exports during February 1-21 last year stood at $20.04 billion. Though, gains remained capped as Finance Minister Nirmala Sitharaman said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India.

On the global front, most of the Asian markets are trading higher despite the broadly negative cues overnight from Wall Street, as traders picked up stocks at a bargain following the recent sell-off amid geopolitical concerns. The Japanese stock market is closed for a holiday on Wednesday on account of Emperor's Birthday.

Back home, Textile industry stocks were in focus with report that India's annual textiles exports can rise to $100 billion in the next five years from the current $40 billion. Textiles Secretary Upendra Prasad Singh said the country's apparel industry must focus on vertical integration to increase its scale and size and to benefit from the production-linked incentive (PLI) scheme. In scrip specific development, Dilip Buildcon gained after the road construction company announced that it was declared as L-1 bidder for a new HAM project under Raipur-Visakhapatnam in Chhattisgarh.

The BSE Sensex is currently trading at 57600.18, up by 299.50 points or 0.52% after trading in a range of 57502.75 and 57733.37. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.34%, while Small cap index was up by 1.80%.

The top gaining sectoral indices on the BSE were Realty up by 2.61%, Consumer Durables up by 1.67%, Utilities up by 1.66%, Consumer discretionary up by 1.52%, Power up by 1.40%, while there was no loser.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.43%, Indusind Bank up by 1.99%, Titan Company up by 1.84%, Asian Paints up by 1.57% and Maruti Suzuki up by 1.43%. On the flip side, Hindustan Unilever down by 0.34%, Nestle down by 0.09% and Larsen & Toubro down by 0.07% were the few losers.

Meanwhile, expressing concern over state of economy, Finance Minister Nirmala Sitharaman has said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. Sitharaman said ‘It is difficult to say how it (crude prices) will go. Even today, in the FSDC, when we were looking at the challenges which are posed for the financial stability, crude was one of the things. International worrisome situations where we actually voiced that we want a diplomatic solution for the situation that is developing in Ukraine… all these are headwinds’.

She said the Brent has touched over $96 per barrel on February 22, 2022 and added that the country is keeping a watch on the same. She said the oil marketing companies will take a call on the retail prices. She said trade has not been impacted because of the geopolitical tensions but the government is keeping a close watch on the same, and added that ‘we are careful that the exporters should not suffer’.

On the exact timeline for the LIC IPO, she said there is a buzz and interest in the market after the life insurance behemoth filed its papers with SEBI for the over Rs 60,000 crore issue, and the government will be going ahead with it. She also said that the government is looking into the lapses that happened at the NSE.

The CNX Nifty is currently trading at 17186.95, up by 94.75 points or 0.55% after trading in a range of 17148.85 and 17220.70. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.86%, Indusind Bank up by 1.96%, Adani Ports & SEZ up by 1.84%, Asian Paints up by 1.60% and BPCL up by 1.51%. On the flip side, ONGC down by 1.24%, Divi's Lab down by 0.40%, Hindustan Unilever down by 0.40%, Nestle down by 0.25% and Larsen & Toubro down by 0.14% were the top losers.

Asian markets are trading mostly in green, Hang Seng surged 166.05 points or 0.71% to 23,686.05, Taiwan Weighted rose 50.88 points or 0.28% to 18,020.17, KOSPI added 5.76 points or 0.21% to 2,712.55, Jakarta Composite gained 19.54 points or 0.28% to 6,881.53 and Shanghai Composite advanced 19.00 points or 0.55% to 3,476.15, while Straits Times was down by 13.73 points or 0.40% to 3,386.85.