Sensex, Nifty trade flat with positive bias in morning deals

Indian equity benchmarks trimmed initial gains and were now trading flat with a positive bias in morning deals, tracking a rebound in global markets after reassuring comments from the Fed. Traders took some support with report stated that investments in agri-tech start-ups significantly grew in four years to nearly Rs 6,600 crore till 2020 on the back of explosive growth potential for companies that address inefficiencies across the agri value chain. Indian agriculture has faced some challenges in the past. But, it said the sector is entering a new phase where technology and accurate information can systematically address those challenges to a great extent. However, gains remain capped as some concern came with private report stated that the Indian FMCG industry witnessed a consumption slowdown in urban markets and de-growth in rural areas in 2021 as the sector was hit hard by higher inflation levels forcing companies to go for successive price increases.

On the global front, Asian markets are trading in green after Fed Chair Jerome Powell said he would propose a quarter-point interest-rate hike at the Fed's next meeting, rather than a half-point. Underlying sentiment, however, may remain cautious after crude oil prices jumped to the highest in eleven years amid the ongoing war in Ukraine and OPEC's decision to stick with plans for a modest increase in output. Back home, there was some reaction in power industry stocks with a private report that India installed a record 10 gigawatt (GW) of solar capacity during calendar year 2021, registering a year-on-year rise of 212 per cent.

The BSE Sensex is currently trading at 55504.42, up by 35.52 points or 0.06% after trading in a range of 55466.13 and 55996.62. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.92%.

The top gaining sectoral indices on the BSE were Power up by 2.22%, Utilities up by 2.19%, Oil & Gas up by 1.57%, Metal up by 1.46% and IT up by 1.35%, while Bankex down by 0.65%, Telecom down by 0.09% and Auto down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.91%, Wipro up by 2.51%, HCL Technologies up by 2.12%, Tata Steel up by 1.90% and Sun Pharma up by 1.16%. On the flip side, Asian Paints down by 3.28%, Ultratech Cement down by 2.01%, Axis Bank down by 1.33%, Kotak Mahindra Bank down by 1.19% and Nestle down by 0.94% were the top losers.

Meanwhile, the Aluminium Association of India (AAI) has said that non-power industries, including aluminium companies, has been plagued by a protracted coal shortage for the past seven months and urged the Prime Minister's Office (PMO) to ensure on priority a supply of at least 25-30 coal rakes per day to the sector. It warned that disruptions in the aluminium sector's production will have a negative effect on India's industrial landscape.

It said the ongoing V-shaped recovery of the Indian economy could receive a severe blow due to the situation faced by the aluminium sector. It stated as the most widely used non-ferrous metal globally and a critical input for several core industries in India, any disruptions in the sector's production will undoubtedly have a negative effect across the country's industrial landscape. The continued coal shortage being faced by the country's highly power-intensive aluminium industry has now put lakhs of jobs in jeopardy.

It mentioned ‘With Coal India (CIL) continuing to give unjustifiable priority to the power sector despite improvement in coal stocks, the supplies to the non-power sector have declined by a staggering 18.2 per cent in the last few months (September 2021-January 2022) compared to the same period last year.’ It added that during the same period, coal stocks for the power sector have improved by 20 per cent. In the absence of adequate coal supply by Coal India and its subsidiaries, several aluminium plants in the country are staring at imminent closure.

The CNX Nifty is currently trading at 16623.00, up by 17.05 points or 0.10% after trading in a range of 16606.25 and 16768.95. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.75%, Coal India up by 2.62%, Wipro up by 2.58%, HCL Tech. up by 2.24% and Indian Oil Corporation up by 2.09%. On the flip side, HDFC Life Insurance down by 3.74%, Asian Paints down by 3.39%, Ultratech Cement down by 2.04%, SBI Life Insurance down by 1.91% and Kotak Mahindra Bank down by 1.23% were the top losers.

Asian markets are trading in green; Nikkei 225 surged 193.19 points or 0.73% to 26,586.22, Hang Seng increased 109.58 points or 0.49% to 22,453.50 Taiwan Weighted strengthened 66.31 points or 0.37% to 17,933.91, KOSPI rose 38.98 points or 1.44% to 2,742.50, Straits Times advanced 18.24 points or 0.56% to 3,262.64 and Shanghai Composite gained 3.35 points or 0.1% to 3,487.54.