Domestic indices trade higher with decent gains in early deals

Indian equity benchmarks have made positive start on Monday but soon wipe out gains and slipped below neutral lines as lackluster trade in Asian counterparts prevailed nervousness among domestic traders. The head of the International Monetary Fund warned of increased risks to financial stability. But, domestic indices managed to recover from lows and are trading higher with decent gains of around half a percent each in early deals as value buying in counters such as Metal, Healthcare and TECK. Traders took encouragement as Prime Minister Narendra Modi said India will emerge as a ‘developed’ nation by 2047 with efforts of every single individual. He said the dream will turn into a reality with the hard work of every single individual of the country and the government is encouraging collective efforts. Also, foreign fund inflows aided domestic sentiments. Foreign investors have pumped Rs 7,200 crore into the Indian equities so far this month, mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. In stock specific development, Sun Pharma rose after it signed an agreement to acquire a 60% stake in Vivaldis Health and Foods for Rs 143 crore.

The BSE Sensex is currently trading at 57808.70, up by 281.60 points or 0.49% after trading in a range of 57415.02 and 57809.05. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.08%, while Small cap index was down by 0.70%.

The top gaining sectoral indices on the BSE were Metal up by 1.00%, Healthcare up by 0.60%, TECK up by 0.57%, IT up by 0.51%, Oil & Gas up by 0.48%, while Realty down by 0.26%, Telecom down by 0.25%, Consumer Durables down by 0.15%, Auto down by 0.04%, Industrials down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.17%, Larsen & Toubro up by 1.01%, Tata Steel up by 0.98%, Infosys up by 0.91% and Ultratech Cement up by 0.84%. On the flip side, Hindustan Unilever down by 0.17%, Axis Bank down by 0.08%, ICICI Bank down by 0.04% and Mahindra & Mahindra down by 0.01% were the top losers.

Meanwhile, in spite of the impact of Russia's war with Ukraine, British Deputy High Commissioner in charge of Kerala and Karnataka Chandru Iyer said the UK and India are heading towards an era of positive engagement in trade and business relations, with steps underway to promote mutual investments in both the nations. Iyer who is also UK's Deputy Trade Commissioner for South Asia said there was potential to double the business by 2030. Calling war a global phenomenon that affects all countries in more ways than one, he hailed entrepreneurs for being enterprising and resilient in the face of adversity.

Iyer said ‘If you look at the flow of business or the trade numbers between the UK and India for the period ending Q4 of last year, the number stood at 34 billion British pounds. For the same period ending the year before last, it was around 19 billion pounds. So it's been a big jump in trade and business’. He added ‘The interest in UK is so high that people want to come there and set up their business and use that as their global headquarters... This means that countries are doing more business together. The aspirations have the potential to double the trade and investment numbers by 2030’. Detailing plans to attract Indian investment in the UK, he said his team was working across India to identify companies with potential and was holding discussions, understanding their aspirations and connecting them with the right people in the UK.

Talking about Indian students who opted for the UK for higher studies and were finding it difficult to land a part-time job, he said employment was at an all-time low in the UK but opportunities were coming up. He said there was a huge demand for STEM professionals in the UK, and Indian students had a lot of opportunities in technical businesses and the banking sector as well. About the collaboration with the state government in the education sector, the British diplomat said he was keen to work with Kerala on student exchange and co-branded courses.

The CNX Nifty is currently trading at 17025.10, up by 80.05 points or 0.47% after trading in a range of 16918.55 and 17035.60. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.69%, Apollo Hospital up by 1.65%, ONGC up by 1.34%, Power Grid up by 1.21% and HDFC Life Insurance up by 1.01%. On the flip side, Eicher Motors down by 0.78%, SBI Life Insurance down by 0.68%, Hindustan Unilever down by 0.31%, Mahindra & Mahindra down by 0.25% and Tata Motors down by 0.24% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 48.76 points or 0.25% to 19,866.92, Taiwan Weighted lost 35.59 points or 0.22% to 15,879.11, Shanghai Composite weakened 34.37 points or 1.06% to 3,231.28, Jakarta Composite plunged 32.3 points or 0.48% to 6,729.95 and KOSPI was down by 3.97 points or 0.16% to 2,410.99. On the other hand, Nikkei 225 surged 113.75 points or 0.41% to 27,499.00 and Straits Times rose 31.24 points or 0.96% to 3,243.88.