Sensex, Nifty trade flat in early noon deals

In a highly volatile trading session, Indian equity benchmarks cut losses to trade flat during early afternoon deals, supported by buying at Healthcare and Consumer Durables counters despite negative cues from other Asian markets. Traders got support, amid reports that foreign portfolio investors (FPIs) continue to show confidence in Indian equities and pumped more than Rs 30,600 crore in June so far, as they bet on the country's stable macroeconomic profile and sturdy corporate earnings outlook. Besides, Union Minister of Commerce and Industry, Piyush Goyal has highlighted the resolution of six outstanding World Trade Organisation (WTO) disputes between US and India through mutually agreed solutions as jointly communicated by the Prime Minister of India, Narendra Modi and President of the United States of America, H.E. Mr. Joseph Biden during the official state visit of the Prime Minister to the USA. The Minister lauded the visionary leadership of the leaders of both countries in taking this historic decision, which enhances the trust and partnership between the two countries. 

On the global front, Asian markets were trading mostly in red, even after Japan's leading index remained stable in April, revised from an improvement estimated initially. The latest data from the Cabinet Office showed that the leading index, which measures future economic activity, came in at 96.8 in April, the same reading as in March. In the flash report, the score for April was 97.6, and the March score was revised down from 96.9.

The BSE Sensex is currently trading at 62975.36, down by 4.01 points or 0.01% after trading in a range of 62887.43 and 63136.09. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.51%, while Small cap index up by 0.45%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.41%, Consumer Durables up by 0.58%, Auto up by 0.54%, FMCG up by 0.51% and IT up by 0.18%, while Metal down by 0.33%, Telecom down by 0.25%, PSU down by 0.15%, Energy down by 0.14% and Realty down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.14%, Sun Pharma up by 1.02%, Ultratech Cement up by 0.72%, Titan Company up by 0.71% and Tata Motors up by 0.70%. On the flip side, NTPC down by 0.83%, TCS down by 0.73%, Bharti Airtel down by 0.72%, Power Grid Corporation of India down by 0.64% and Reliance Industries down by 0.49% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the Export Credit Guarantee Corporation (ECGC) has supported over 16,000 exporters with an aggregate value of business covered to the tune of Rs 6.68 lakh crore in 2022-23 and it is expected to increase to more than Rs 10 lakh crore this fiscal. The ECGC, wholly owned by the Government of India, was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services. 

Goyal has stated that in the next four months, all procedures at the company would be made completely digital and grievance redressal mechanism to be implemented over video conference. He said that extended cover under export credit insurance for banks scheme with enhanced cover of 90 per cent would be extended to accounts with limits up to Rs 50 crore. He also said that the digitisation of processes at ECGC will enhance the convenience for the exporters. 

Last year, the company extended cover under Export Credit Insurance for banks (ECIB) scheme for the accounts with export credit working capital limits up to Rs 20 crore sanctioned by the banks (excluding traders and GJD exporters) with enhanced cover of 90 per cent. The minister said the extended cover under the scheme has resulted in easing of interest rates on the credit/loans obtained from the banks. He added that the benefit of the enhanced cover will be extended to the accounts with limits up to Rs 50 crore for four banks (SBI, Central Bank of India, Bank of Maharashtra and Saraswat Bank) without any additional cost.

The CNX Nifty is currently trading at 18685.25, up by 19.75 points or 0.11% after trading in a range of 18652.80 and 18722.05. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.55%, Cipla up by 2.84%, UPL up by 1.86%, Tata Consumer Products up by 1.74% and Dr Reddy's Laboratories up by 1.46%. On the flip side, NTPC down by 0.94%, Power Grid Corporation of India down by 0.92%, Coal India down by 0.86%, JSW Steel down by 0.77% and BPCL down by 0.72% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 143.16 points or 0.84% to 17,059.24, Nikkei 225 slipped 82.73 points or 0.25% to 32,698.81, Hang Seng declined 67.35 points or 0.36% to 18,822.62, Shanghai Composite weakened 48.38 points or 1.51% to 3,149.52 and Straits Times fell 0.04 points or 0% to 3,191.56, while KOSPI increased 12.1 points or 0.47% to 2,582.20 and Jakarta Composite gained 17.85 points or 0.27% to 6,657.58.