Domestic indices trade lower in early deals

Indian equity benchmarks made flat-to-negative start on Monday amid mixed cues from global markets and ahead of the expiry of February month derivative contracts. Domestic indices are trading lower with cut of around 0.30% each in early deals. There was some cautiousness as data released by the Reserve Bank of India (RBI) showed that India's foreign exchange reserves declined to $616.10 billion as on February 16. However, downside remained limited amid foreign fund inflows. Foreign institutional investors (FIIs) net bought shares worth Rs 1,276.09 crore on February 23, provisional data from the NSE showed. Traders took encouragement after Union Finance Minister Nirmala Sitharaman said under Prime Minister Narendra Modi's leadership, India has moved up to the fifth position from the 10th spot in the world in terms of economy. 

Most of the Asian markets are trading lower as traders remain cautious ahead the release of inflation data from the US, Japan and Europe which could provide more clarity on the outlook for global interest rate moves. Some traders are also booking profits after the recent gains in the markets. Back home, paper industry stocks were in focus as the Indian Paper Manufacturers Association (IPMA) said imports of paper and paperboards have increased by 37 per cent to around 1.47 million tonnes in April-December this fiscal, which have hit the local paper mills. In stock specific development, HDFC Bank edged up after it received RBI approval to sell stake in HDFC Credila.

The BSE Sensex is currently trading at 72878.78, down by 264.02 points or 0.36% after trading in a range of 72853.02 and 73092.26. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.40%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Utilities up by 0.82%, Power up by 0.45%, Capital Goods up by 0.34% and Industrials up by 0.27%, while Realty down by 1.10%, IT down by 1.10%, TECK down by 1.09%, Consumer Durables down by 0.74% and Oil & Gas down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.56%, Larsen & Toubro up by 1.52%, Mahindra & Mahindra up by 0.41%, Tata Motors up by 0.18% and HDFC Bank up by 0.16%. On the flip side, Asian Paints down by 3.90%, Tech Mahindra down by 1.65%, Wipro down by 1.36%, Titan Company down by 1.20% and Axis Bank down by 1.10% were the top losers.

Meanwhile, expressing optimism over India’s economic prospects, Union Finance Minister Nirmala Sitharaman said the country has moved up to the fifth position from the 10th spot in the world in terms of economy, under Prime Minister Narendra Modi's leadership.

She said ‘In the next year and a half, we will be at the third position’, and added that the standard of living of the citizens is better in a country that has a strong economy and everyone benefits from it. She further said this is the first government in the country that listens to people, then makes schemes and works to deliver the benefits of such schemes to people.

The government data showed India's economy grew 7.6 per cent in the September quarter of this fiscal (2023-24), mainly due to better performance by manufacturing, mining and services sectors. The gross domestic product (GDP) expanded by 6.2 per cent in the July-September quarter of 2022-23. India remained the fastest-growing major economy, as China posted a 4.9 per cent growth in July-September 2023.

The CNX Nifty is currently trading at 22148.70, down by 64.00 points or 0.29% after trading in a range of 22126.35 and 22202.15. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.65%, Power Grid up by 1.58%, Bajaj Auto up by 0.81%, Adani Enterprises up by 0.75% and Cipla up by 0.49%. On the flip side, Asian Paints down by 3.85%, Tech Mahindra down by 1.49%, BPCL down by 1.36%, Wipro down by 1.31% and HDFC Life Insurance down by 1.17% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 117.74 points or 0.7% to 16,608.12, Straits Times fell 27.05 points or 0.85% to 3,157.86, KOSPI dropped 21.71 points or 0.81% to 2,645.99, Shanghai Composite weakened 17.4 points or 0.58% to 2,987.48 and Jakarta Composite was down by 4.76 points or 0.07% to 7,290.34. On the other hand, Nikkei 225 surged 172.03 points or 0.44% to 39,270.71 and Taiwan Weighted was up by 28.52 points or 0.15% to 18,917.71.