Domestic indices trade flat in early deals; Tata Steel leads losers

Indian equity benchmarks made cautious start on Thursday, following overnight losses on wall Street and weakness in Asian counterparts, on renewed concerns over the outlook for interest rates following the hawkish remarks by US Fed Chair Jerome Powell, who reiterated the Fed is likely to continue raising interest rates in an effort to contain stubbornly elevated inflation. Markets soon turned volatile and are struggling for direction amid the weekly expiry of Nifty derivatives contract. Domestic indices are trading flat in early deals as selling in IT, TECK and Power stocks kept upside in check, whereas buying in Auto, Industrials and Oil & Gas stocks supported the markets. 

Foreign fund inflows were aiding domestic sentiments. Provisional data from the National Stock Exchange shows foreign institutional investors (FII) bought shares worth Rs 4,013.10 crore on June 21. Though, some cautiousness came in as the Securities and Exchange Board of India (Sebi) restrained 135 entities from accessing the securities market and directed them to impound around Rs 126 crore of wrongful gains from alleged market manipulation done through bulk SMSes.

On the global front, most of the Asian markets are trading lower in thin trade as markets in China, Hong Kong and Taiwan are closed for the Dragon Boat Festival. Back home, the World Economic Forum's annual Gender Gap Report, 2023 showing that India has ranked at 127 out of 146 countries in terms of gender parity -- an improvement of eight places from last year. In stock specific development, Glenmark Pharma dropped as US FDA issues warning letter for its US facility.

The BSE Sensex is currently trading at 63512.22, down by 10.93 points or 0.02% after trading in a range of 63372.97 and 63601.71. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.05%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Auto up by 0.42%, Industrials up by 0.32%, Oil & Gas up by 0.32%, Energy up by 0.28% and Bankex up by 0.21%, while IT down by 0.73%, TECK down by 0.59%, Power down by 0.45%, Utilities down by 0.30% and FMCG down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 0.88%, ICICI Bank up by 0.87%, HDFC Bank up by 0.56%, HDFC up by 0.53% and Maruti Suzuki up by 0.31%. On the flip side, Tata Steel down by 1.71%, Infosys down by 1.42%, Power Grid down by 1.16%, Bajaj Finance down by 0.99% and NTPC down by 0.77% were the top losers.

Meanwhile, Prime Minister Narendra Modi has met top American thought leaders in New York and briefed them about the reform trajectory of his government to foster economic growth. Modi met leading American Economist Prof Paul Romer, investor and co-founder of the hedge fund, Bridgewater Associates Ray Dalio, and other eminent thought leaders and exchanged views. Prime Minister Modi is on the first leg of his maiden state visit to the US at the invitation of President Joe Biden.

On India’s digital journey, he discussed about the use of Aadhar and innovative tools like Digilocker. They also discussed various initiatives being undertaken by India for urban development. The prime minister highlighted the reforms undertaken by the government to foster economic growth, including the reduction of compliances and decriminalisation of a large number of legal provisions. Modi also invited Dalio for further investing in India.

Prime Minister Modi and Neil de Grasse Tyson, astrophysicist, author and science communicator, have discussed at length India’s rapid progress in the space sector, including various space exploration missions being undertaken by India, the Ministry of External Affairs said in a press release. They also discussed opportunities for the private sector and academic collaboration under India’s newly launched National Space Policy.

Modi also met a group of leading US experts from the health sector and discussed various matters pertaining to the domain of health including the use of digital technologies for quality healthcare, greater focus on integrative medicine and better healthcare preparedness. Modi also met experts from several leading US think tanks and discussed a range of developmental and geo-political issues. He also invited them to enhance their presence in India as it embarks on its transformation during the 'Amrit kaal'.

The CNX Nifty is currently trading at 18861.00, up by 4.15 points or 0.02% after trading in a range of 18830.90 and 18882.65. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 1.04%, ICICI Bank up by 0.89%, Mahindra & Mahindra up by 0.82%, Divi's Lab up by 0.58% and Eicher Motors up by 0.54%. On the flip side, Tata Steel down by 1.80%, Infosys down by 1.30%, Bajaj Finance down by 1.17%, Power Grid down by 1.16% and Tata Consumer Products down by 1.07% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 74.07 points or 0.22% to 33,501.07, Jakarta Composite fell 6.95 points or 0.1% to 6,695.68 and Straits Times was down by 4.60 points or 0.14% to 3,219.06. On the other hand, KOSPI was up by 13.21 points or 0.51% to 2,595.84.