Benchmarks edge higher in morning deals

Indian equity benchmarks reversed early losses and edged higher in morning deals, supported by gains across index-heavyweights like TCS, Infosys, HCL Technologies, among others. Traders took some support with Ministry of Commerce and Industry joint secretary M Balaji’s statement that the Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia would provide immediate market access at zero duty accounting 96.4 per cent of India’s exports in value terms to Australia.  He said the ECTA has the potential to double bilateral ties between the two countries to $50 billion over the next five years. Traders also took a note of private report that the central government is likely to further consolidate its fiscal deficit by 50 basis points (bps) to 5.9 per cent in FY24 from 6.4 per cent in FY23. However, gains remain capped as some concern came with a private report stating that private equity investments into domestic companies fell sharply year-on-year by 42 per cent to $23.3 billion in 2022, which is the lowest since 2019, when it was $15.8 billion.

On the global front, Asian markets are trading mostly in green amid investors awaited U.S. inflation data due on Thursday for clues to the economic and rate outlook. Meanwhile, the World Bank slashed its global growth forecasts in its latest Global Economic Prospects report and warned that new adverse shocks could tip the global economy into a recession. Back home, real estate related stocks remained in watch as a private report said that Indian real estate got $5.2 billion of institutional investments across 47 deals in the calendar year 2022 (CY22), a time of geopolitical headwinds and inflationary pressures. Investments increased 19 per cent compared to 2021.

The BSE Sensex is currently trading at 60327.43, up by 211.95 points or 0.35% after trading in a range of 59805.78 and 60333.92. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.19%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were IT up by 1.24%, Capital Goods up by 0.95%, Metal up by 0.94%, Industrials up by 0.81% and TECK up by 0.70%, while Telecom down by 0.57%, Utilities down by 0.39%, Power down by 0.23%, Healthcare down by 0.22% and Auto down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.56%, Infosys up by 1.37%, HCL Technologies up by 1.17%, Larsen & Toubro up by 1.13% and HDFC Bank up by 1.05%. On the flip side, Bharti Airtel down by 3.22%, Hindustan Unilever down by 0.90%, Reliance Industries down by 0.60%, Nestle down by 0.41% and Mahindra & Mahindra down by 0.36% were the top losers.

Meanwhile, Union Minister of State for Electronics and IT Rajeev Chandrasekhar has said government will soon launch an information technology server and IT hardware production linked incentive (PLI) scheme. The scheme will provide additional incentives for manufacturers and original equipment manufacturers (OEMs) who incorporate Indian-designed IP into their systems and products.

He further said the government has announced Future Design Programme, which invests $ 200 million in startups that will design or co-design IP, tools or devices for the next generation of applications in India.

He mentioned ‘By 2024, we believe India would have stepped into the semiconductor manufacturing space and catalysed a more domestic design and innovation ecosystem where we are encouraging startups to work with the leading global majors to develop IP, to develop devices either co-owned or owned for which the government has announced Future Design Programme.’

The CNX Nifty is currently trading at 17967.95, up by 53.80 points or 0.30% after trading in a range of 17824.35 and 17967.95. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.93%, TCS up by 1.57%, Infosys up by 1.41%, BPCL up by 1.34% and HCL Technologies up by 1.30%. On the flip side, Bharti Airtel down by 3.24%, Cipla down by 2.83%, Apollo Hospital down by 1.32%, Divi's Lab down by 1.11% and ONGC down by 1.00% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 255.23 points or 0.98% to 26,430.79, Hang Seng increased 218.09 points or 1.02% to 21,549.55, KOSPI rose 9.69 points or 0.41% to 2,361.00, Straits Times advanced 9.45 points or 0.29% to 3,272.36 and Shanghai Composite gained 6.29 points or 0.2% to 3,175.80.
On the flip side, Jakarta Composite lost 33.96 points or 0.51% to 6,588.54 and Taiwan Weighted dropped 48.79 points or 0.33% to 14,754.17.