Sensex, Nifty trade flat with positive bias in early deals

Indian equity benchmarks made slightly positive start on Monday tracking broadly optimistic cues from Asian counterparts. Soon, markets turned volatile and are hovering near neutral lines. At this point of trade, Sensex and Nifty are trading flat with positive bias as buying in Power and Utilities stocks aided sentiments, whereas selling in metal stocks limited the upside. Some support came in with a private report that Inflation in goods and services other than fuel and food is likely to remain low, around 3% in the near term, owing to weak rural demand, softness in housing inflation and lower input cost pressures. Market participants continued to take support with the finance ministry’s statement that India collected Rs 1.68 lakh crore in goods and services tax (GST) in February, 12.5 percent more than the year-ago period. 

However, upside remained capped amid foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 81.87 crore on March 2, provisional data from the NSE showed. Some cautiousness also came in as oil prices slightly rose in Asian trade on Monday after the OPEC+ maintained its current pace of production cuts until the second quarter. On the global front, most of the Asian markets are trading higher, following the broadly positive cues from global markets on Friday, amid bets the US Fed will likely cut interest rate in June after data showed a slowdown in manufacturing activity and a drop in consumer sentiment in the U.S. Besides, the Bank of Japan said the monetary base in Japan was up 2.4 percent on year in February, - coming in at 661.668 trillion yen.

Back home, stocks related to semiconductor industry are in focus as IT and Telecom Minister Ashwini Vaishnaw said India will, in next five years, join the high-stake global stage of semiconductor manufacturing as it combines unparalleled design capabilities with $10 billion of incentives to draw manufacturers to set up new fabs and units that will cut dominance of Taiwan, South Korea and China. In stock specific development, MOIL surged on reaching 1.51 lakh tonnes of manganese ore output in Feb, up 15 per cent YoY.

The BSE Sensex is currently trading at 73854.23, up by 48.08 points or 0.07% after trading in a range of 73750.61 and 73983.88. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.12%, while Small cap index was down by 0.52%.

The top gaining sectoral indices on the BSE were Power up by 1.06%, Utilities up by 1.04%, Oil & Gas up by 0.70%, Energy up by 0.55% and PSU up by 0.45%, while Metal down by 0.81%, Basic Materials down by 0.60%, Consumer Durables down by 0.58%, FMCG down by 0.52% and Auto down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.21%, Power Grid up by 1.88%, Bharti Airtel up by 1.10%, Sun Pharma up by 0.75% and Indusind Bank up by 0.45%. On the flip side, JSW Steel down by 2.46%, Tata Steel down by 1.93%, Titan Company down by 1.21%, Mahindra & Mahindra down by 1.17% and Asian Paints down by 0.49% were the top losers.

Meanwhile, expressing optimism over the target of $100 billion non-oil trade between India and the UAE by 2030, CII President R Dinesh has said that it is ambitious but achievable as huge business opportunities are there in both the nations for sectors such as textiles, jewellery and pharma. He added that recent developments are encouraging in this regard. He said that the free trade agreement between India and the UAE, which was implemented in May 2022, has resulted in a surge in bilateral trade and investments. He said that the agreement, officially dubbed as comprehensive economic partnership agreement, covers duty-free access to all labour-intensive sectors such as gems and jewellery, textiles and apparel, leather, pharmaceuticals, medical devices, and many engineering products. The bilateral trade has already touched $84.9 billion in 2022-23, and India is now the UAE’s top non-oil trading partner.

He further said ‘India’s vast consumer base and growing manufacturing capabilities offer an attractive market for UAE goods, while the UAE’s status as a global trade hub facilitates Indian export access to international markets’. The UAE is a major supplier of crude oil to India. Oil shipments account for a major share of bilateral trade between the countries. He added ‘This agreement is a game-changer, offering opportunities for businesses in services ranging from telecommunications, construction and development, education, environment, financial sector, health services, tourism and films, hospitality, and maritime and air transport services, among others’. 

He said the pact also paves the way for both Indian and UAE companies to come together to be part of global supply chains and encourage manufacturing in both countries. He said ‘Notably, FDI (foreign direct investment) from the UAE to India has more than tripled, reaching $3.35 billion in 2022-23. In our discussions, I find that we are well positioned to leverage this for ‘Make in India’ and ‘Made in Emirates’ to work hand in hand’. He added that joint ventures and technology transfers would enhance production, leading to diversification and value addition.

He said ‘Streamlining logistics, promoting cross-border e-commerce, and supporting startups will further boost trade dynamics’ and added that collaborations in sustainable industrial development, technology transfer, and energy security is vital, with promising opportunities for UAE firms in India’s energy, regional connectivity, and maritime sectors. Healthcare and education are some other areas in India where good opportunities are visible for UAE investors. Additionally, cooperation in energy security and trade, particularly in green hydrogen and energy storage, is advantageous for India, given the UAE’s significant role as a crude and LPG source.

The CNX Nifty is currently trading at 22395.90, up by 17.50 points or 0.08% after trading in a range of 22361.80 and 22440.90. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.63%, NTPC up by 2.36%, Power Grid up by 2.13%, ONGC up by 1.78% and Bajaj Auto up by 1.28%. On the flip side, JSW Steel down by 2.49%, Tata Steel down by 1.96%, Eicher Motors down by 1.79%, Tata Consumer Products down by 1.17% and SBI Life Insurance down by 1.11% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 380.94 points or 2.01% to 19,316.87, Nikkei 225 surged 223.15 points or 0.56% to 40,133.97, KOSPI rose 32.61 points or 1.23% to 2,674.97, Shanghai Composite strengthened 6.61 points or 0.22% to 3,033.63, Jakarta Composite gained 5.67 points or 0.08% to 7,317.58 and Hang Seng added 0.97 points or 0.01% to 16,590.41, while Straits Times was down by 13.59 points or 0.43% to 3,122.17.