Benchmarks trade flat with negative bias in morning deals

Indian equity benchmarks erased initial gains to trade flat with negative bias in morning deals, as traders remained on sidelines ahead of the RBI monetary policy outcome on Friday. The RBI’s rate-setting panel started its deliberations, expected to keep the key interest rate unchanged and focus on inflation control. Some concern also came with a private report stating that merchandise exports from India for the financial year 2023-24 (FY24) may show a contraction of around 1-1.5 per cent after two consecutive years of growth, even as March is likely to witness robust double-digit growth. However, losses remain capped as traders took support with data showing that India's services activity continued to expand in March, with the HSBC Purchasing Managers' Index (PMI) for the sector coming in at 61.2. Rising from 60.6 in February to 61.2 in March, the seasonally adjusted HSBC India Services Business Activity Index pointed to one of the strongest growth rates seen in over 13-and-a-half years. The upturn was largely attributed to healthy demand conditions, efficiency gains and positive sales developments. On the global front, Asian markets are trading in green despite worries that a resilient U.S. economy may prompt the Federal Reserve to limit the scale of interest-rate cuts this year.

The BSE Sensex is currently trading at 73864.47, down by 12.35 points or 0.02% after trading in a range of 73730.45 and 74501.73. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.23%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Utilities up by 1.96%, Power up by 1.66%, Metal up by 0.34%, Telecom up by 0.28% and Bankex up by 0.24%, while Oil & Gas down by 0.55%, Energy down by 0.38%, FMCG down by 0.35%, Auto down by 0.24% and Healthcare down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.10%, HDFC Bank up by 1.99%, Power Grid Corporation up by 1.03%, TCS up by 0.47% and Kotak Mahindra Bank up by 0.36%. On the flip side, Indusind Bank down by 1.55%, Sun Pharma Industries down by 1.30%, Bharti Airtel down by 1.24%, Nestle down by 0.86% and ICICI Bank down by 0.83% were the top losers.

Meanwhile, with an aim to boost economic ties, Senior officials of India and the five-nation Eurasian Economic Union (EEU) bloc held detailed discussions last month to formally start negotiations for a free trade agreement (FTA). The five members of the EEU are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Two feasibility studies have already been conducted on the proposed agreement.

In such agreements, two or more trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. These agreements provide greater market access to Indian goods and services. Senior officers of both sides have met on March 28 and have discussed formally starting talks for the FTA.

Russia is the top trading partner of India in the bloc, with bilateral trade worth $49.4 billion in FY23. India's exports to Russia stood at $3.14 billion in 2022-23, while imports were $46.2 billion due to an increase in crude oil imports. The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was $134.26 million, $111.81 million, $641.62 million, and $56.56 million, respectively, in 2022-23.

The CNX Nifty is currently trading at 22419.90, down by 14.75 points or 0.07% after trading in a range of 22372.55 and 22619.00. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.17%, HDFC Bank up by 1.99%, Power Grid Corporation up by 1.05%, Divi's Lab up by 0.98% and Coal India up by 0.90%. On the flip side, Indusind Bank down by 1.50%, Hero MotoCorp down by 1.23%, Bharti Airtel down by 1.23%, Sun Pharma down by 1.16% and Shriram Finance down by 1.12% were the top losers.

Asian markets are trading in green; Nikkei 225 surged 499.39 points or 1.27% to 39,951.24, Straits Times rose 20.91 points or 0.65% to 3,243.57, KOSPI increased 28.99 points or 1.07% to 2,735.96 and Jakarta Composite gained 61.93 points or 0.86% to 7,228.77.