Benchmark indices continue lackluster trade

Indian equity benchmarks continued to trade in red zone in noon session, with Sensex and Nifty trading below at 55900 and 16650 levels, respectively. Traders were worried with private report stating that India’s economy probably grew slower than previously estimated last year, with virus curbs in the final quarter seen as a drag on activity while the war in Europe has added a new inflation hurdle to recovery. Additional pressure came amid hot inflation reading in Germany heightened nerves about the pace and scale of looming interest rate hikes. German bond yields rose 8.1 bps overnight after German consumer prices increased at their fastest pace in half a century, strengthening the case for an outsized European Central Bank interest rate hike in July. On the global front, Asian markets were trading mostly higher as signs that China's economic pain may be gradually abating amid easing Covid-19 curbs overshadowed broader investor concerns about a global inflation shock.

The BSE Sensex is currently trading at 55828.05, down by 97.69 points or 0.17% after trading in a range of 55386.50 and 55896.60. 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 0.62%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Realty up by 1.85%, Auto up by 1.39%, Consumer Discretionary up by 1.11%, Industrials up by 0.89% and Telecom was up by 0.86%, while Consumer Durables down by 0.96%, Power down by 0.90%, Utilities down by 0.71%, Healthcare down by 0.22% and FMCG was down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.04%, Power Grid up by 2.08%, Nestle up by 1.77%, NTPC up by 1.39% and Bajaj Finserv was up by 0.84%. On the flip side, Sun Pharma down by 3.71%, Titan Co down by 2.63%, HDFC down by 1.70%, Hindustan Unilever down by 1.07% and Kotak Mahindra Bank was down by 1.04% were the top losers.

Meanwhile, Department of Financial Services (DFS) secretary Sanjay Malhotra has said that advance action is underway for privatisation of two public sector banks (PSBs) in pursuance of the announcement made by finance minister Nirmala Sitharaman. In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises.

Government think-tank NITI Aayog has already suggested two banks and one insurance company to the core group of secretaries on disinvestment for privatization.

As per the process, the core group of secretaries, headed by the Cabinet secretary, will send its recommendation to Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the prime minister for the final nod.

The CNX Nifty is currently trading at 16644.45, down by 16.95 points or 0.10% after trading in a range of 16521.90 and 16670.90. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.96%, Mahindra & Mahindra up by 3.94%, Power Grid up by 2.48%, Coal India up by 2.16% and Apollo Hospital was up by 2.14%. On the flip side, Sun Pharma down by 3.42%, Titan Co down by 2.59%, HDFC down by 1.76%, Shree Cement down by 1.42% and Kotak Mahindra Bank was down by 1.35% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 214.30 points or 1.01% to 21,338.23, Taiwan Weighted strengthened 197.15 points or 1.19% to 16,807.77, KOSPI rose 9.43 points or 0.35% to 2,679.09, Straits Times advanced 22.25 points or 0.69% to 3,261.17, Shanghai Composite gained 30.39 points or 0.97% to 3,179.45 and Jakarta Composite was up by 45.53 points or 0.65% to 7,083.10.

On the flip side, Nikkei 225 was down by 89.63 points or 0.33% to 27,279.80.