Domestic indices trade flat with positive bias

Indian equity benchmarks made flat-to-positive start on Wednesday tracking broadly positive cues from the Wall Street overnight. Soon, domestic indices turned volatile and are trading flat with positive bias in early deals amid lack of directional cues. Some support came in with report that India would benefit from a move of over 70 nations like the UK, UAE and Australia that have agreed to take on additional obligations in the services sector under an agreement of the WTO. Traders took note of report that the borrowing cost for states continued to fall for the third week in a row, with the weighted average price falling to 7.44 per cent in the debt auction on Tuesday. The cost had remained at a two-year high throughout January sniffing at 7.8 per cent. However, upside remained capped amid foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 1,509.16 crore on February 27, provisional data from the NSE showed. 

On the global front, Asian markets are trading mostly lower ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve's easing cycle, while the New Zealand dollar fell sharply after the central bank softened its hawkish stance on rates. Taiwan is closed for Peace Memorial Day holiday. Back home, auto stocks are in focus as Icra said domestic Commercial Vehicle (CV) volumes are expected to dip 4-7 per cent year-on-year next fiscal with high base effect kicking in. The volumes are expected to remain muted through the January-March quarter on account of a perceived pause in the infrastructural activities as the model code of conduct kicks in ahead of the general elections.  In stock specific development, Patanjali Foods down as SC bans co's ads with misleading claims.

The BSE Sensex is currently trading at 73125.00, up by 29.78 points or 0.04% after trading in a range of 73044.44 and 73178.28. There were 11 stocks advancing against 18 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.03%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Telecom up by 0.85%, Consumer Durables up by 0.65%, Metal up by 0.24%, Industrials up by 0.18% and TECK up by 0.18%, while Realty down by 0.71%, Utilities down by 0.27%, Oil & Gas down by 0.20%, Auto down by 0.19% and Power down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.93%, SBI up by 0.69%, Tata Motors up by 0.68%, Hindustan Unilever up by 0.34% and Titan Company up by 0.26%. On the flip side, Asian Paints down by 1.23%, Mahindra & Mahindra down by 0.96%, Wipro down by 0.69%, Ultratech Cement down by 0.60% and Maruti Suzuki down by 0.59% were the top losers.

Meanwhile, terming startups as the backbone of new India, Union minister Piyush Goyal has exhorted entrepreneurs not to “miss the bus” and make most of the opportunities as India transitions to become a $35 trillion economy by 2047. He said the country has emerged as a global leader, and its story is one of confidence, good governance and continued innovation.

He said ‘I believe startups will be backbone of new India. This is our time under the sun, and the sun is rising’. He further said ‘I hope we don't miss the bus. I hope the message goes loud and clear to all startups not to lose this opportunity’ and added that the upcoming mega event will showcase the startup revolution sweeping the country.

The minister exuded confidence that young Indians will shape the country's destiny in 'Amrit kaal'. He said ‘...It is this young India that is going to shape our destiny...As we transition from $3.5 trillion economy to $35 trillion, when we celebrate 100 years of independence in 2047’.

The CNX Nifty is currently trading at 22209.50, up by 11.15 points or 0.05% after trading in a range of 22184.35 and 22226.30. There were 23 stocks advancing against 26 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Tata Consumer Products up by 1.38%, Tata Motors up by 1.16%, Dr. Reddy's Lab up by 0.78%, Bharti Airtel up by 0.78% and SBI up by 0.73%. On the flip side, Apollo Hospital down by 1.56%, Asian Paints down by 1.31%, Mahindra & Mahindra down by 0.90%, BPCL down by 0.73% and Maruti Suzuki down by 0.66% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 23.51 points or 0.14% to 16,767.29, Shanghai Composite weakened 20.08 points or 0.67% to 2,995.40, Straits Times fell 9.99 points or 0.32% to 3,147.33 and Nikkei 225 was down by 7.37 points or 0.02% to 39,232.15. On the other hand, Jakarta Composite rose 30.42 points or 0.42% to 7,315.74 and KOSPI was up by 28.03 points or 1.07% to 2,653.08.