Domestic indices trade flat with negative bias in early deals

Indian equity benchmarks made slightly negative start on Wednesday tracking weakness in global markets as uncertainty over the path of U.S. monetary policy largely outweighed optimism over an economic recovery in China, with focus now turning to a slew of indicators from the Federal Reserve this week. The domestic equity indices are strangling for direction and are trading flat with negative bias in early deals. Selling in IT and TECK counters mainly weighted down on the indices. Foreign fund outflows dented investor sentiments. National Stock Exchange's provisional data showed foreign institutional investors (FII) sold shares worth Rs 810.60 crore on April 18. Besides, the rupee depreciated 7 paise to 82.11 against the US dollar in early trade, weighed down by firm crude oil prices and strength in American currency.

In stock specific development, ONGC dipped after the government re-introduced windfall tax on local crude to Rs 6,400/tonne from nil. Besides, it also increased the Special Additional Excise Duty (SAED) on crude petroleum from nil to Rs 6,400 per tonne. However, RattanIndia Enterprises jumped after the company launched direct-to-consumer fashion brands business with Neobrands.

The BSE Sensex is currently trading at 59649.53, down by 77.48 points or 0.13% after trading in a range of 59558.13 and 59745.89. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.09%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Metal up by 1.50%, Industrials up by 0.29%, Consumer Durables up by 0.24%, PSU up by 0.21%, Telecom up by 0.17%, while IT down by 0.97%, TECK down by 0.87%, FMCG down by 0.53%, Power down by 0.29%, Utilities down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.18%, Axis Bank up by 0.73%, Bharti Airtel up by 0.54%, HDFC up by 0.41% and Mahindra & Mahindra up by 0.36%. On the flip side, HCL Technologies down by 1.63%, Infosys down by 1.56%, Asian Paints down by 1.19%, Hindustan Unilever down by 1.12% and Wipro down by 0.76% were the top losers.

Meanwhile, India and Russia have agreed to work towards unlocking the full potential of their economic engagement including through addressing the trade deficit and market access issues. The two sides reviewed the entire gamut of economic ties at a meeting of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).

The bilateral trade between India and Russia witnessed a significant expansion due to New Delhi’s increasing procurement of discounted Russian crude oil in the backdrop of the Ukraine war. The Ministry of External Affairs (MEA) said ‘the sides reviewed the entire gamut of bilateral trade and economic relationship, and agreed to work together to unlock its full potential including through addressing the trade deficit and market access issues’.

India’s trade deficit with Russia jumped significantly in the last few months after it procured significant volumes of discounted crude oil from that country. India has been focusing on expansion of trade and economic ties with Russia notwithstanding increasing disquiet over it by the Western powers in view of the Russian invasion of Ukraine.

The CNX Nifty is currently trading at 17638.50, down by 21.65 points or 0.12% after trading in a range of 17611.80 and 17662.65. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.04%, JSW Steel up by 1.30%, Hindalco up by 0.98%, Bajaj Auto up by 0.94% and Axis Bank up by 0.83%. On the flip side, Apollo Hospital down by 1.61%, HCL Technologies down by 1.56%, Infosys down by 1.42%, Asian Paints down by 1.06% and Hindustan Unilever down by 1.06% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 116.49 points or 0.56% to 20,534.02, Nikkei 225 slipped 105.3 points or 0.37% to 28,553.53, Taiwan Weighted lost 46.9 points or 0.3% to 15,822.54 and Shanghai Composite weakened 7.28 points or 0.21% to 3,386.05. On the other hand, Straits Times rose 6.78 points or 0.2% to 3,316.34 and KOSPI was up by 7.27 points or 0.28% to 2,578.36.