Markets trade flat with volatility in early deals ahead of WPI data

Indian equity benchmarks made an optimistic start on Friday amid easing Russia-Ukraine war tensions, a delay in U.S. tariff impositions until April and Trump-Modi talks aligning with expectations. However, markets turned volatile and are trading flat in early deals amid disappointing Q3 earnings and foreign fund outflows. The Foreign institutional investors (FIIs) extended their selling on seventh day as they sold equities worth Rs 2,789.91 crore on February 13. investors are eyeing India’s wholesale price index (WPI) inflation data to be out later in the day. Broader indices - BSE Mid & Small cap - are underperforming larger peers with losses of around a percent each.

On the global front, Asian markets are trading mixed, following the broadly positive from Wall Street overnight, amid raising fears of a brewing global trade war and its impact on inflation, despite U.S. President Donald Trump deciding to delay a new reciprocal tariff plan, aiming to match levies imposed by other nations.

Back home, defense stocks are in focus as Trump said the United States will be increasing its military sales to India by billions of dollars and his administration is paving the way to provide India with F35 Stealth fighters. In stock specific development, Godfrey Phillips traded with traction followed by its announcement of strong Q3 results for the financial year 2025 (Q3FY25).

The BSE Sensex is currently trading at 76291.73, up by 152.76 points or 0.20% after trading in a range of 76110.87 and 76483.06. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.92%, while Small cap index was down by 1.31%.

The top gaining sectoral indices on the BSE were FMCG up by 0.71%, Metal up by 0.16%, Bankex up by 0.15%, TECK up by 0.10% and Auto up by 0.08%, while Healthcare down by 1.64%, Utilities down by 0.80%, Power down by 0.79%, Industrials down by 0.76% and Basic Materials down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.34%, Hindustan Unilever up by 0.92%, Nestle up by 0.81%, ICICI Bank up by 0.78% and HCL Technologies up by 0.51%. On the flip side, Adani Ports & SEZ down by 1.48%, Sun Pharma down by 1.19%, Ultratech Cement down by 0.95%, NTPC down by 0.73% and Power Grid down by 0.69% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said the government will continue to take measures to check inflation and ensure that citizens are not burdened. The minister said the retail inflation based on Consumer Price Index (CPI) reduced to 4.31 per cent in January from 5.22 per cent in December and is moving towards the 4 per cent target given to the Reserve Bank of India.

She said data showed steep correction in prices of tomato, onion and potato prices, and even pulses. He stated ‘So food inflation, which gets triggered when you have an adverse weather condition, and supply chain disruptions are being managed by a group of ministers who are ensuring that timely import happens if there is a shortfall in supply.’ 

Besides, she listed out the steps proposed in the Budget to boost agricultural production in the country. She said ‘So it is clear that government's attempt to remove the stress of price rise is actually being received in the ground. The efforts will continue. We shall make sure that price should not be a burden on the ordinary citizens.’

The CNX Nifty is currently trading at 23017.90, down by 13.50 points or 0.06% after trading in a range of 23007.20 and 23133.70. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.09%, Hindustan Unilever up by 0.96%, Britannia Industries up by 0.76%, Tata Consumer Products up by 0.71% and Nestle up by 0.67%. On the flip side, Adani Enterprises down by 2.79%, Adani Ports & SEZ down by 2.02%, Apollo Hospital down by 1.60%, Dr. Reddy's Lab down by 1.59% and Bharat Electronics down by 1.15% were the top losers.

Asian markets are trading mixed; Hang Seng jumped 489.43 points or 2.24% to 22,303.80, KOSPI increased 11.83 points or 0.46% to 2,595.00, Shanghai Composite strengthened 8.47 points or 0.25% to 3,340.95 and Jakarta Composite gained 7.73 points or 0.12% to 6,621.30. On the other hand, Nikkei 225 slipped 235.5 points or 0.6% to 39,225.97, Taiwan Weighted lost 179.05 points or 0.77% to 23,220.36 and Straits Times was down by 4.73 points or 0.12% to 3,877.85.