Markets trade flat with negative bias in early deals

Indian equity benchmarks made cautious start on Friday after three days of consecutive gains amid lackluster cues from Asian counterparts and rising crude oil prices. Markets are struggling for direction and are trading flat with negative bias in early deals as selling FMCG, Utilities and Power counters pulling indices down, whereas buying in Capital Goods, Industrials and Realty stocks capped the downside. Traders were cornered as Commerce and Industry Minister Piyush Goyal said the ongoing global uncertainty and recessionary trends could have some implications on India's exports. Though, downside remained capped as Chief Economic Advisor V Anantha Nageswaran expressed hope that the economy will maintain the trend growth rate of 6.5 per cent and above for the rest of the years in the current decade. He added the economy will close the current fiscal logging in a growth of 6.5-7%. Some support may come as the latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO) showed that India’s urban unemployment rate for persons aged 15 years and above in urban areas dropped for the fifth consecutive quarter in the July-September period of 2022-23 (FY23) to 7.2% from 9.8% a year ago.

On the global front, most of the Asian markets are trading lower as traders largely refrained from making significant moves amid a lack of fresh triggers with the U.S. market remaining closed for Thanksgiving Day. Traders are also concerned about the surge in COVID cases in China weighing on global growth. Back home, Commerce and Industry Minister Piyush Goyal said that India and the Gulf Cooperation Council (GCC) have agreed to pursue a free trade agreement (FTA) between the two regions and resume the negotiations. In stock specific development, Tube Investments of India gained after it acquired 50 per cent stake early-age startup - X2Fuels and Energy.

The BSE Sensex is currently trading at 62218.58, down by 54.10 points or 0.09% after trading in a range of 62123.84 and 62447.73. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.64%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.91%, Industrials up by 0.84%, Realty up by 0.78%, PSU up by 0.73%, Auto up by 0.38%, while FMCG down by 0.52%, Utilities down by 0.44%, Power down by 0.41%, TECK down by 0.24%, IT down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.48%, Axis Bank up by 0.88%, NTPC up by 0.77%, Indusind Bank up by 0.59% and Maruti Suzuki up by 0.51%. On the flip side, Nestle down by 1.13%, Bajaj Finance down by 0.96%, Power Grid down by 0.95%, Hindustan Unilever down by 0.90% and Asian Paints down by 0.79% were the top losers.

Meanwhile, the finance ministry in its latest report 'Monthly Economic Review for October 2022'  has said that India is well placed to grow at a ‘moderately brisk rate’ in the coming years on the back of macroeconomic stability, despite global monetary tightening. It further said inflationary pressures will ease in the coming months with the arrival of kharif crops and at the same time job opportunities will increase with improvement in business prospects.

The report also cautioned that the US monetary tightening is a ‘future risk’ which could lead to dip in stock prices, weaker currencies and higher bond yields, resulting in higher borrowing costs for many governments around the world. It said a rapid deterioration in global growth prospects, high inflation, and worsening financial conditions have increased fears of an impending global recession. The spillovers of the global slowdown may dampen India's exports businesses outlook. However, resilient domestic demand, a re-invigorated investment cycle along with strengthened financial system and structural reforms will provide impetus to economic growth going forward.

The ministry said, so far in current year, India's food security concerns have been addressed and will continue to receive the utmost priority from the government. It added that easing international commodity prices and new kharif arrival are also set to dampen inflationary pressures in the coming months. India's wholesale and retail price inflation fell in October after remaining high for most part of the year mainly due to supply chain disruptions following outbreak of the Russia-Ukraine war in February. Retail or CPI inflation fell to 3-month low of 6.7 per cent, while wholesale or WPI inflation was at 19-month low of 8.39 per cent.

The CNX Nifty is currently trading at 18472.10, down by 12.00 points or 0.06% after trading in a range of 18445.10 and 18533.15. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 2.23%, Larsen & Toubro up by 1.64%, Axis Bank up by 0.96%, Apollo Hospital up by 0.83% and Coal India up by 0.79%. On the flip side, Hindustan Unilever down by 0.99%, Power Grid down by 0.95%, Bajaj Finance down by 0.86%, Nestle down by 0.81% and Asian Paints down by 0.80% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 100.90 points or 0.36% to 28,282.19, Straits Times fell 15.80 points or 0.49% to 3,237.08, Hang Seng plunged 152.04 points or 0.86% to 17,508.86, KOSPI declined 4.67 points or 0.19% to 2,436.66 and Jakarta Composite was down by 36.05 points or 0.51% to 7,044.47. On the other hand, Taiwan Weighted added 8.37 points or 0.06% to 14,792.37 and Shanghai Composite was up by 12.12 points or 0.39% to 3,101.43.