Markets trade near neutral lines with negative bias

Indian equity markets are trading near neutral lines with negative bias in late afternoon session. Financial and IT shares dragged the indices lower, though gains in metal shares lent some support. However, strength was visible in the broader markets with the S&P BSE Mid-cap and the S&P BSE Small-cap indices gaining over half a percent each in trade. Traders were cautious after private report said that soaring prices and the subsequent hit to consumer spending and investments are likely to further dampen India's economy, as the central bank faces a finely balanced struggle to tame inflation via rate hikes without hurting economic growth.

On the global front, Asian markets were trading mostly in green following the lack of cues from Wall Street overnight due to a holiday, as signs of easing COVID-19 curbs in Beijing and Shanghai as well as the announcement of more stimulus measures in China raised optimism about growth in the world's second largest economy and helped underpin sentiment. European markets were trading mostly in red as attention shifts to inflation and interest-rate hikes.

The BSE Sensex is currently trading at 55855.19, down by 70.55 points or 0.13% after trading in a range of 55386.50 and 55925.62. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.86%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Metal up by 2.56%, Realty up by 2.34%, PSU up by 1.43%, Capital Goods up by 1.37% and Industrials was up by 1.29%, while Power down by 0.71%, Consumer Durables down by 0.61%, Utilities down by 0.39%, TECK down by 0.27%, IT down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.71%, NTPC up by 3.08%, Nestle up by 2.01%, Tata Steel up by 1.82% and Power Grid up by 1.80%. On the flip side, Sun Pharma down by 3.03%, Titan Company down by 2.01%, HDFC down by 1.86%, Infosys down by 1.39% and Maruti Suzuki down by 1.00% were the top losers.

Meanwhile, with an aim to facilitate generation of employment opportunities for unemployed youth across the country, the government has approved the extension of its scheme for employment generation ‘Prime Minister’s Employment Generation Programme’ (PMEGP) over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.

In addition, multiple modifications have also been made to the scheme including increasing the maximum financial assistance offered from existing Rs 25 lakh to Rs 50 lakh to entrepreneurs for setting up new manufacturing units and from existing Rs 10 lakh to Rs 20 lakh for new service units.

Besides, all Implementing Agencies are allowed to receive and process applications in all areas irrespective of the rural or urban category. As per the notification, the scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years. All the States/UTs will be covered under the Scheme.

The CNX Nifty is currently trading at 16669.80, up by 8.40 points or 0.05% after trading in a range of 16521.90 and 16690.75. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were ONGC up by 5.41%, Coal India up by 4.14%, Mahindra & Mahindra up by 3.66%, NTPC up by 3.15% and JSW Steel up by 3.15%. On the flip side, Sun Pharma down by 3.02%, Titan Company down by 2.04%, HDFC down by 1.91%, HDFC Life Insurance down by 1.46% and Infosys down by 1.36% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 291.27 points or 1.38% to 21,415.20, Taiwan Weighted strengthened 197.15 points or 1.19% to 16,807.77, Jakarta Composite soared 111.40 points or 1.58% to 7,148.97, Shanghai Composite gained 37.37 points or 1.19% to 3,186.43, Straits Times advanced 16.51 points or 0.51% to 3,255.43 and KOSPI was up by 16.24 points or 0.61% to 2,685.90. On the flip side, Nikkei 225 was down by 89.63 points or 0.33% to 27,279.80.

European markets were trading mostly in red, France’s CAC decreased 32.06 points or 0.49% to 6,530.33 and Germany’s DAX was down by 40.34 points or 0.28% to 14,535.64. On the flip side, UK’s FTSE 100 was up by 43.20 points or 0.57% to 7,643.26.