Domestic indices trade higher in early deals

Domestic equity markets started the session on fairly higher note on Thursday mirroring their Asian counterparts. Though, indices trimmed some of their opening gains and are trading in green with gains of around 0.35% each in early deals. Some volatility may remain in the markets today on account of the monthly F&O expiry.  Traders took note of Finance Minister Nirmala Sitharaman’s statement that in an interconnected world, sanctions can have unintended consequences, and India is trying to work through them. Meanwhile, an authoritative seasonal forecast from the South Asian Seasonal Climate Outlook Forum report said that normal to above normal rainfall is most likely during the 2022 southwest monsoon season (June-September) over most parts of South Asia.

Global cues remained supportive with all the Asian markets trading higher as traders continued to pick up stocks at a bargain after the recent sell-off, even as the mood remained cautious amid concerns about Covid-fueled economic slowdown and the looming interest rate hikes. Besides, the Ministry of Economy, Trade and Industry said industrial production in Japan was up a seasonally adjusted 0.3 percent on month in March.

Back home, insurance industry stocks were in focus with ICRA’s report that general insurance industry's gross direct premium income (GDPI) is expected to grow by 10-12 per cent in the current fiscal on account of rising awareness of medical insurance and improvement in economic activity. In scrip specific development, Indian Hotels rose on strong Q4 numbers. It reported a consolidated net profit of Rs 71.57 crore in the March quarter against a consolidated net loss of Rs 97.72 crore in the same period last year.

The BSE Sensex is currently trading at 57015.24, up by 195.85 points or 0.34% after trading in a range of 57002.30 and 57296.44. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.19%, Utilities up by 1.11%, Power up by 1.11%, Energy up by 1.01%, Healthcare up by 0.68%, while Telecom down by 0.19% was the sole losing index on BSE.

The top gainers on the Sensex were Asian Paints up by 2.20%, Sun Pharma up by 1.58%, Hindustan Unilever up by 1.21%, Maruti Suzuki up by 1.16% and Infosys up by 1.00%. On the flip side, HCL Technologies down by 1.64%, Bharti Airtel down by 0.74%, Bajaj Finance down by 0.46%, Titan Company down by 0.34% and Kotak Mahindra Bank down by 0.32% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that in an interconnected world, sanctions can have unintended consequences, and India is trying to work through them. Economic sanctions imposed on Russia by the US and European Union following the invasion of Ukraine in February this year have led to a fall in bilateral trade with Moscow. The ongoing war also fuelled energy prices and a shortage of foodgrains.

She said India’s stand on the Russia-Ukraine war is with the view to safeguard its economic and security interest. She added ‘so, India’s position is not just for its economic interests, but also its security interests. The balance that India has taken in every decision in this context… because of the geopolitical location of India’.

She further said sanction always has an impact on not just the country on which it is imposed but on many other nations, and added that ‘it can have collateral impact on many others who probably didn’t intend to have the sanction’. So, she said unintended consequences do bear an immediate and strong impact on countries in this digitally connected world.

The CNX Nifty is currently trading at 17109.90, up by 71.50 points or 0.42% after trading in a range of 17097.15 and 17189.50. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.44%, Asian Paints up by 2.21%, Sun Pharma up by 1.50%, Hindustan Unilever up by 1.45% and Maruti Suzuki up by 1.18%. On the flip side, Bajaj Auto down by 2.08%, HCL Technologies down by 1.70%, Bharti Airtel down by 0.53%, Britannia Industries down by 0.41% and Bajaj Finance down by 0.31% were the top losers.

All the Asian markets are trading in green; Nikkei 225 surged 350.01 points or 1.33% to 26,736.64, Straits Times inched up 9.55 points or 0.29% to 3,330.22, Hang Seng jumped 219.01 points or 1.10% to 20,165.37, Taiwan Weighted rose 107.90 points or 0.66% to 16,411.25, KOSPI advanced 16.47 points or 0.62% to 2,655.53, Jakarta Composite added 39.06 points or 0.54% to 7,235.82 and Shanghai Composite was up by 7.28 points or 0.25% to 2,965.56.