Domestic indices trim opening gains to trade tad higher in early deals

Indian equity benchmarks extended their previous session’s gains with positive start on Wednesday tracking overnight gains on Wall Street as investors digested the latest batch of earnings and comments from a slew of Fed officials. Also, firm trade Asian counterparts supported markets, as investors waited for concrete measures from Beijing to prop up its sagging equity markets. Domestic indices trimmed some of their gains but continue to trade in green terrain in early deals. Foreign fund inflows aided domestic sentiments. Foreign institutional investors (FIIs) net bought shares worth Rs 92.52 crore on February 6, provisional data from the NSE showed. Traders took some encouragement as finance minister Nirmala Sitharaman said that retail inflation has come down to within the tolerance band due to steps taken by the government to check price rise in essential commodities, especially in perishable commodities. 

However, gains in the markets remained capped amid higher crude oil prices driven by concerns over escalating tensions in the Middle East, which raised apprehensions about potential disruptions to oil supply from the region. Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT) has taken strides to bolster the Indian Tyre Industry, aiming to promote and incentivize its growth. In stock specific developments, Nazara Technologies rallied as Q3 profit grows 47% in Q3 and Nykaa advanced as Q3 net nearly doubles.

The BSE Sensex is currently trading at 72309.14, up by 123.05 points or 0.17% after trading in a range of 72279.17 and 72559.21. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.38%, while Small cap index was up by 0.81%.

The top gaining sectoral indices on the BSE were Realty up by 2.15%, Metal up by 0.73%, Utilities up by 0.70%, Telecom up by 0.66% and Bankex up by 0.62%, while IT down by 0.52%, TECK down by 0.36%, Auto down by 0.17% and Oil & Gas down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.17%, Axis Bank up by 1.68%, Bajaj Finance up by 1.59%, Sun Pharma up by 1.35% and Bajaj Finserv up by 1.15%. On the flip side, Power Grid down by 1.40%, Infosys down by 1.10%, HCL Technologies down by 1.04%, Wipro down by 0.76% and Tech Mahindra down by 0.60% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal stated that the government has taken various measures like production-linked incentive schemes and simplified policies to boost investments, trade and promote economic activities in the country. He added India continues to open its economy to global investors by raising FDI limits, removing regulatory barriers, developing infrastructure and improving the business environment. To give impetus to foreign direct investment (FDI) inflows, he noted the government has put in place an investor-friendly policy, where most of the sectors are open for 100 per cent FDI under the automatic route.

He said ‘The government initiatives are significant to increase investments and promote economic growth besides converting the disruption caused by COVID-19 into an opportunity for growth and investment’. To ensure that India remains an attractive and investor-friendly destination, the government reviews FDI policy on an ongoing basis and makes changes from time to time after having intensive consultations with stakeholders. The policy provisions have been progressively liberalised and simplified across various sectors like asset reconstruction companies, broadcasting, pharma, single-brand retail trading, power exchanges, e-commerce activities, and coal mining.

In order to further improve the ease of doing business ecosystem in the country, he said the government coordinates with ministries, departments and states for initiatives to reduce compliance burden on citizen and business activities. In order to have a continuous evaluation framework, the government started a reform exercise - Business Reforms Action Plan for the assessment of the business environment in the states and UTs. The other initiatives include PLI schemes for 14 sectors, a national infrastructure pipeline, a national monetisation pipeline, India's industrial land bank, a national single window system, and an industrial park rating system.

Talking about trade, he said the government is encouraging exporters to participate in the exhibitions and providing grants in aid under the market access initiative. The 14 PLI schemes have the potential of significantly boosting production, employment, increase manufacturing activities and contribute to economic growth over the next five years or so, thereby having the potential to change the manufacturing ecosystem in the country. The government in 2021 announced PLI schemes for 14 sectors like telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore.

The CNX Nifty is currently trading at 21983.45, up by 54.05 points or 0.25% after trading in a range of 21963.80 and 22053.30. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were SBI up by 2.41%, HDFC Life Insurance up by 2.25%, Axis Bank up by 1.82%, Bajaj Finance up by 1.60% and Coal India up by 1.49%. On the flip side, Power Grid down by 1.37%, Infosys down by 1.04%, HCL Technologies down by 0.89%, Eicher Motors down by 0.66% and Britannia Industries down by 0.56% were the top losers.

Asian markets are trading mostly in green; Shanghai Composite strengthened 25.4 points or 0.9% to 2,814.89, Straits Times rose 25.32 points or 0.8% to 3,151.00, KOSPI added 22.11 points or 0.85% to 2,598.31 and Jakarta Composite was up by 15.12 points or 0.21% to 7,262.53. On the other hand, Nikkei 225 slipped 207.92 points or 0.58% to 35,952.74 and Hang Seng was down by 17.65 points or 0.11% to 16,119.22.