Markets trade flat with a positive bias

Indian equity benchmarks erased losses and were trading flat with positive bias, led by gains in Energy, Oil & Gas and Telecom stocks. Traders took some support with Chief Economic Advisor (CEA) Anantha Nageswaran’s statement that the impact of structural reforms, like Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC), will help boost India's growth once the cloud of the pandemic and geopolitical conflict recedes. Some support also came as the commerce ministry stated that the country’s exports increased 24.18 per cent to $9.39 billion during June 1-7, 2022 on account of healthy growth in sectors like engineering, gems and jewellery and petroleum products. The exports during June 1-7, 2021 stood at $7.56 billion. However, gains remain capped as the Organization for Economic Cooperation and Development (OECD) pegged India’s FY23 economic growth at 6.9 per cent, the lowest by a major bank or institution, saying the country had been adversely affected by Russia’s invasion of Ukraine.

On the global front, Asian markets are trading mostly in red amid renewed worries about rising inflation, slowing growth and the outlook for interest rates. The downward revisions in global growth forecasts for the current year and 2023 by the World Bank and the Organization for Economic Cooperation and Development weighed as well. Investors are looking ahead to the European Central Bank's monetary policy announcement due on Thursday, and the crucial data on U.S. inflation due on Friday.

The BSE Sensex is currently trading at 54918.52, up by 26.03 points or 0.05% after trading in a range of 54507.41 and 54934.89. There were 14 stocks advancing against 16 stocks declining on the index. 

The broader indices were trading in green; the BSE Mid cap index rose 0.02%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were Energy up by 1.13%, Oil & Gas up by 0.87%, Telecom up by 0.72%, Healthcare up by 0.46% and Power up by 0.46%, while Metal down by 0.70%, Basic Materials down by 0.52%, Bankex down by 0.35%, Capital Goods down by 0.12%, Industrials down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy's Lab up by 2.92%, Reliance Industries up by 1.27%, Bharti Airtel up by 1.06%, Maruti Suzuki up by 0.99% and Titan Co up by 0.97%. On the flip side, Tata Steel down by 1.99%, Asian Paints down by 1.57%, Power Grid Corp down by 1.00%, Larsen & Toubro down by 0.94% and Ultratech Cement down by 0.87% were the top losers.

Meanwhile, the commerce ministry has said that the country’s exports increased 24.18 per cent to USD 9.39 billion during June 1-7, 2022 on account of healthy growth in sectors like engineering, gems and jewellery and petroleum products. The exports during June 1-7, 2021 stood at USD 7.56 billion.
It stated Gems and jewellery, engineering, petroleum products, and electronic goods’ exports increased by 84.3 per cent, 25.7 per cent, 20.4 per cent and 73.5 per cent, respectively.

Further, it stated that Imports during the period too rose by about 77 per cent to USD 16 billion. Major import goods that recorded growth include petroleum, crude, coal, coke and briquettes, gold and chemicals. India’s merchandise exports rose by 15.46 per cent to USD 37.29 billion in May on account of healthy performance by sectors, including petroleum products, electronic goods and chemicals.

The CNX Nifty is currently trading at 16365.40, up by 9.15 points or 0.06% after trading in a range of 16243.85 and 16368.15. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.99%, ONGC up by 2.02%, Reliance Industries up by 1.27%, Bajaj Auto up by 1.15% and Coal India up by 1.14%. On the flip side, Tata Steel down by 1.98%, Asian Paints down by 1.60%, Shree Cement down by 1.48%, Grasim Industries down by 1.26% and Apollo Hospital Ent. down by 1.04% were the top losers.

Asian markets are trading mostly in red; Shanghai Composite declined 17.16 points or 0.53% to 3,246.63, Straits Times trembled 13.23 points or 0.41% to 3,212.57, Hang Seng decreased 78.43 points or 0.36% to 21,936.16, KOSPI fell 2.48 points or 0.09% to 2,623.67 and Taiwan Weighted dropped 67.60 points or 0.41% to 16,602.91.

On the flip side, Nikkei 225 surged 124.73 points or 0.44% to 28,359.02 and Jakarta Composite soared 58.69 points or 0.82% to 7,252.00.