Markets trade flat with positive bias in early deals

Indian equity benchmarks made slightly positive start on Tuesday amid lack of global cues as US markets remained closed overnight on account of Washington's Birthday. Sentiments got a boost as credit rating agency Acuite Ratings and Research reiterated India's gross domestic product (GDP) growth estimate for FY23 at 7 per cent. Now, markets are trading flat with positive bias in early deals. However, weakness in Asian counterparts kept upside in check as investors reacted to weak purchasing manager index reports from Japan and Australia and kept a wary eye on the latest geopolitical developments. Foreign fund outflows also dampened sentiments in domestic markets. Foreign institutional investors net offloaded Indian equities to the tune of Rs 159 crore on February 20 - a second straight day of net outflow for Dalal Street, according to provisional exchange data. Domestically, retail inflation for farm and rural workers rose to 6.85 per cent and 6.88 per cent, respectively, in January, mainly due to higher prices of certain food items. Meanwhile, Rupee slipped 3 paise from its previous close to 82.76 vs the US dollar in early deals amid rise in the value of greenback against a basket of six peers.

The BSE Sensex is currently trading at 60791.27, up by 99.73 points or 0.16% after trading in a range of 60655.78 and 60859.07. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.26%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Metal up by 0.79%, Telecom up by 0.51%, FMCG up by 0.46%, Capital Goods up by 0.44%, Power up by 0.41%, while Consumer Durables down by 0.34%, Bankex down by 0.21%, Energy down by 0.16%, Realty down by 0.16%, Oil & Gas down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.40%, Bharti Airtel up by 1.05%, Hindustan Unilever up by 0.97%, Tata Steel up by 0.93% and HDFC up by 0.90%. On the flip side, Axis Bank down by 0.77%, Titan Company down by 0.58%, Indusind Bank down by 0.56%, Wipro down by 0.50% and Asian Paints down by 0.45% were the top losers.

Meanwhile, credit rating agency Acuite Ratings and Research has reiterated India's gross domestic product (GDP) growth estimate for FY23 at 7 per cent. It also anticipates the economic growth trajectory in FY24 to slip to 6 per cent, which would still make India one of the highest growth economies in the world. It said the Indian economy has managed to withstand the headwinds rather well over the last several months amidst a tough global environment.

Acuite Ratings said ‘Domestic growth impulses have gained strength, as urban consumption continues to push demand for both goods and services with derivative support accruing from the government capex cycle which has got a further boost from the Union Budget 2023’. It said private investments remain somewhat confined, unsurprisingly in an environment of heightened global uncertainty although the higher credit growth reflects the start of a trickle.

The rating agency also said the breadth of domestic economic activity should continue to find support in a healthy rabi harvest and improved rural demand, the strength in services sector exports, pent-up demand in the travel and the tourism sector along with the Central government's consistent focus on pushing capital expenditure. Nevertheless, growing risks to growth outlook emanate from the impending slowdown in global demand in 2023, with Dec-22 domestic export growth contraction of 12.2 per cent YoY - i.e., the steepest contraction in two years, serving as a harbinger of tougher times ahead. Further, the continuing rise in interest rates and a relatively tighter liquidity environment may have a lagged impact on demand.

The CNX Nifty is currently trading at 17870.85, up by 26.25 points or 0.15% after trading in a range of 17837.95 and 17905.85. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 1.68%, Cipla up by 1.43%, NTPC up by 1.43%, Grasim Industries up by 1.20% and JSW Steel up by 1.20%. On the flip side, Adani Enterprises down by 1.01%, Axis Bank down by 0.82%, Bajaj Auto down by 0.67%, Titan Company down by 0.60% and Indusind Bank down by 0.56% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 207.23 points or 0.99% to 20,679.73, Nikkei 225 slipped 37.82 points or 0.14% to 27,494.12, Taiwan Weighted lost 14.19 points or 0.09% to 15,537.04, Jakarta Composite plunged 9.23 points or 0.13% to 6,885.49 and Straits Times fell 3.19 points or 0.1% to 3,305.56. On the other hand, KOSPI increased 3.07 points or 0.13% to 2,458.19 and Shanghai Composite was up by 3.37 points or 0.1% to 3,293.71.