Domestic indices trade with cut of around half percent in early deals

Indian equity benchmarks made negative start on Tuesday tracking mixed global cues, as traders remain cautious after Bank of Japan raised its interest rates for the first time since 2007. It increased its short-term interest rates to 0% to 0.1% from the previous -0.1%. Market participants also await the US Fed's monetary policy announcement on Wednesday for clues about the outlook for interest rates. The Fed is widely expected to leave interest rates unchanged after recent inflation readings have reduced optimism about a rate cut in June. Domestic indices -- Sensex and Nifty -- are trading lower with notable cut of around half a percent each in early deals due to selling at IT and TECK counters. Foreign fund outflows dented sentiments in the domestic markets. Provisional data from the NSE showed that foreign institutional investors (FIIs) net sold shares worth Rs 2,051.09 crore on March 18. Traders overlooked Reserve Bank of India (RBI) data showed that India’s outward foreign direct investment (FDI) commitments rose substantially to $3.47 billion in February 2024, compared to over $2.82 billion in February 2023. Sequentially, FDI commitments were also up from $2.18 billion in January 2024. 

On the sectoral front, IT sector stocks are trading under pressure with report that uncertain macroeconomics in key markets like the US and Europe will continue to drag growth for the Indian IT services industry. A report released by ICRA said that the industry is poised to witness a modest revenue growth of 2 per cent in the first three quarters of FY24, and it will maintain a restrained trajectory in the range of 3-5 per cent in FY25. Sugar industry stocks are in focus as ISMA data showed that India's net sugar production fell marginally to 280.79 lakh tonnes till March 15 of the current marketing year that started in October 2023. In stock specific development, TCS slipped amid reports that Tata Sons was to divest a 0.65 per cent stake (23.4 million shares) via block deal at a floor price of Rs 4,001 per share.

The BSE Sensex is currently trading at 72386.74, down by 361.68 points or 0.50% after trading in a range of 72316.09 and 72490.09. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.15%, while Small cap index was up by 0.18%.

The few gaining sectoral indices on the BSE were Metal up by 0.78%, Basic Materials up by 0.42% and Telecom up by 0.25%, while IT down by 0.98%, TECK down by 0.83%, Oil & Gas down by 0.67%, Energy down by 0.59% and Consumer Durables down by 0.54% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.67%, Bajaj Finance up by 0.54%, Bharti Airtel up by 0.23%, JSW Steel up by 0.20% and SBI up by 0.10%. On the flip side, TCS down by 2.60%, Nestle down by 1.89%, Wipro down by 1.21%, NTPC down by 1.01% and Larsen & Toubro down by 0.98% were the top losers.

Meanwhile, the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh has revealed the Government of India’s plans to introduce a dedicated policy aimed at fostering deep-tech startups. Singh disclosed that the government is currently in the advanced stages of crafting a specialized policy framework specifically tailored to support deep-tech startups. He indicated that the policy paper is undergoing final discussions among various ministries and expressed optimism about its imminent release. Additionally, he outlined plans for the subsequent establishment of a dedicated fund-of-funds to further support these innovative ventures. 

He added ‘The policy paper is in the final stages of inter-ministerial discussion and we hope to bring it forward soon and after that we will move forward towards creating a dedicated fund-of-funds again.’ Emphasizing the importance of government support for startups, he highlighted that beyond funding, startups require orders from the government to kickstart their journey effectively. He underscored the role of government procurement in providing the initial traction necessary for startups to flourish. He remarked ‘Startups, more than funding, they need orders from government to give them that start that they deserve’.

Singh also celebrated India’s status as the third-largest startup ecosystem globally, acknowledging its significance as a testament to Prime Minister Narendra Modi’s vision for the nation’s development. He emphasized that India’s burgeoning startup ecosystem aligns with the Prime Minister’s overarching goal of transforming the country into a developed nation by 2047, rallying all segments of society towards this common objective. Singh stated ‘We have the 3rd largest startup ecosystem in the world.’

The CNX Nifty is currently trading at 21944.60, down by 111.10 points or 0.50% after trading in a range of 21922.05 and 21978.30. There were 13 stocks advancing against 36 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Tata Steel up by 1.67%, Adani Enterprises up by 1.32%, Hindalco up by 1.25%, Bajaj Auto up by 1.09% and Bajaj Finance up by 0.56%. On the flip side, TCS down by 2.78%, Nestle down by 1.75%, HDFC Life Insurance down by 1.42%, Cipla down by 1.39% and Apollo Hospital down by 1.33% were the top losers.

Asian markets are trading mixed; Hang Seng declined 182.23 points or 1.1% to 16,554.89, Nikkei 225 slipped 49.08 points or 0.12% to 39,691.36, KOSPI dropped 35.01 points or 1.32% to 2,650.83 and Shanghai Composite weakened 11.9 points or 0.39% to 3,073.03. On the other hand, Jakarta Composite rose 48.49 points or 0.66% to 7,350.94, Taiwan Weighted added 3.06 points or 0.02% to 19,882.91 and Straits Times was up by 0.26 points or 0.01% to 3,172.19.