Indian markets trade in red in early deals; Bajaj Finserv up over 2%

Indian equity benchmarks continued their previous session’s sluggish trend with weak start on Tuesday amid rise in crude oil prices overnight. Also, investors looked ahead to some key U.S. tech earnings, the U.S. Q2 GDP data and the Fed's interest-rate decision. Markets are trading lower with of over half a percent each in early deals due to selling in IT and TECK stocks. Traders were concerned as Minister of State for Finance Pankaj Chaudhary said the Central government's total liabilities are seen rising to Rs 155.33 lakh crore in FY23. This would represent an increase of 12 percent over the FY22 figure of Rs 138.88 lakh crore. The Centre is set to borrow a record Rs 14.95 lakh crore on a gross basis from the market through the issuance of bonds in FY23. Some cautiousness also came in as foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 844.78 crore, data available with NSE suggested. Though, downside remained capped with a private report stating that India is poised to be the fastest-growing major economy in the world and an engine of global growth despite global headwinds.

On the global front, most of the Asian markets are trading higher, following the mostly positive cues from Wall Street overnight. News of new Covid-19 cases in China dropping to the lowest level in more than a week aided market sentiment. Investors largely stayed cautious ahead of some key earnings updates, US GDP data and the US Federal Reserve's monetary policy announcement on Wednesday.

Back home, defence industry stocks were in focus as the government said India has received around Rs 494 crore of foreign direct investment in the defence sector since revising the policy relating to it in September 2020. In stock specific developments, Bajaj Finserv gained as its board to consider bonus, stock split plan. However, Jindal Stainless slipped after its net profit drops 8% YoY in Q1

The BSE Sensex is currently trading at 55443.65, down by 322.57 points or 0.58% after trading in a range of 55418.53 and 55834.38. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.27%, while Small cap index was down by 0.36%.

The only gaining sectoral indices on the BSE were Power up by 0.12% and Utilities up by 0.11%, while IT down by 1.54%, TECK down by 1.37%, Healthcare down by 0.77%, FMCG down by 0.76%, Capital Goods down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.06%, Ultratech Cement up by 0.92%, Tata Steel up by 0.69%, Reliance Industries up by 0.41% and Bajaj Finance up by 0.17%. On the flip side, Dr. Reddy's Lab down by 2.59%, Nestle down by 2.37%, Infosys down by 1.93%, Asian Paints down by 1.29% and Kotak Mahindra Bank down by 1.19% were the top losers.

Meanwhile, executing optimism over India’s economic growth, Commerce Minister Piyush Goyal has said that with strong gross domestic product (GDP) growth, the country is on the path to become a $30 trillion economy in the next 30 years. He added that the country is currently $3-3.5 trillion economy and soon will achieve $5 trillion.

He said ‘as we move to a $5 trillion economy...we are well poised on track to aspire to be a $30 trillion economy in the next 30 years. It doesn't need any rocket science. All it needs is understanding that the power of our demographic dividend, the youth power and the power of democracy, which India proudly represents’.

He further said that at a Compounded Annual Growth Rate of 8 per cent, the goal of $30 trillion economy would be achieved sooner or later. He highlighted that women would play an important role in the growth of India and there is always space for them on the high table.

The CNX Nifty is currently trading at 16534.50, down by 96.50 points or 0.58% after trading in a range of 16526.25 and 16636.10. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.07%, ONGC up by 1.16%, Ultratech Cement up by 0.88%, Tata Steel up by 0.79% and Grasim Industries up by 0.70%. On the flip side, Dr. Reddy's Lab down by 2.58%, Nestle down by 2.37%, Infosys down by 1.98%, Apollo Hospital down by 1.62% and Larsen & Toubro down by 1.28% were the top losers.

Asian markets are trading mostly in green; Straits Times added 0.71 points or 0.02% to 3,181.18, Hang Seng surged 304.57 points or 1.48% to 20,867.51, KOSPI rose 5.09 points or 0.21% to 2,408.78, Jakarta Composite advanced 20.00 points or 0.29% to 6,878.41 and Shanghai Composite was up 26.32 points or 0.81% to 3,276.71. On the other hand, Nikkei 225 fell 12.26 points or 0.04% to 27,686.99 and Taiwan Weighted was down by 153.57 points or 1.03% to 14,782.76.