Key gauges end flat with negative bias in volatile session

Indian equity benchmarks oscillated between gains and losses throughout the day and finally ended flat with negative bias on Wednesday, dragged by blue-chip TECK and IT stocks.  After an initial fall, key indices staged a swift recovery in the early hours but struggled to sustain gains and ended flat due to a lack of follow-up buying.   

Some of the important factors in today’s trade: 

Concerns over tariff-related trade war. A cautious undertone prevailed as first round of talks between the U.S. and Russia over potential peace deal in Ukraine ended with no clear path and U.S. President Donald Trump said he intends to impose 25 percent tariffs on autos, pharmaceuticals, and chips. 

Rising oil prices kept investors on edge: Oil prices traded higher for a third day running, supported by prospects of lessened supply following reports of Ukraine's attack on a Russian oil station and cold weather in the U.S. 

A reversal in FII flows: Foreign Institutional Investors (FIIs) turned buyers on Tuesday after unabated selling. They bought equities worth Rs 4,786.56 crore, according to exchange data. 

India GDP growth estimated at 6.3% in FY25: The SBI, in its research, has estimated GDP growth during 2024-25 to be 6.3 per cent. It said that a healthy rural economy is reinforcing stability and sustains momentum in other sectors. 

Unemployment rate in urban areas dips to 6.4% in December quarter: the National Sample Survey Office (NSSO) has stated that the unemployment rate for people aged 15 years and above in urban areas dipped to 6.4 per cent in the October-December quarter.  

Global front: European markets were trading lower after data showed U.K. consumer price inflation rose more than expected to a 10-month high in January. Asian markets settled mostly down amid lingering tariff concerns and tense Russia-Ukraine negotiations.

Finally, the BSE Sensex fell 28.21 points or 0.04% to 75,939.18, and the CNX Nifty was down by 12.40 points or 0.05% to 22,932.90.        

The BSE Sensex touched high and low of 76,338.58 and 75,581.38 respectively. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.30%, while Small cap index was up by 2.41%.

The top gaining sectoral indices on the BSE were Industrials up by 2.59%, Capital Goods up by 2.19%, Realty up by 1.62%, PSU up by 1.51% and Metal up by 1.41%, while TECK down by 1.31%, IT down by 1.21%, Healthcare down by 0.31% were the losing indices on BSE.

The top gainers on the Sensex were Zomato up by 4.86%, Larsen & Toubro up by 1.77%, Axis Bank up by 1.77%, ICICI Bank up by 1.50% and Indusind Bank up by 1.15%. On the flip side, TCS down by 2.28%, Infosys down by 2.20%, Hindustan Unilever down by 1.98%, Sun Pharma down by 1.38% and Power Grid Corporation down by 1.35% were the top losers. 

Meanwhile, amid rising protectionism globally, Minister of State for Commerce and Industry Jitin Prasada has said that India is formulating strategies to ensure that interests of domestic exporters are protected. He also said that with a 1.4 billion domestic market, India is navigating free trade agreements on an equal footing.

He said ‘We have an aspirational spending power population. So, we will get the best in the interest of India and in the interest of our exporters. We will not buckle under any pressure anymore. We will not settle for anything less’.

He added ‘The government is thinking ahead as to what bumps and speed breakers and the challenges that might arise and India is formulating strategies accordingly’. The government has set a target of $118 billion in engineering exports for 2024-25.

The CNX Nifty traded in a range of 23,049.95 and 22,814.85. There were 25 stocks advancing against 25 stocks declining on the index. 

The top gainers on Nifty were Bharat Electronics up by 3.54%, Hindalco up by 2.70%, Eicher Motors up by 1.92%, Axis Bank up by 1.53% and Larsen & Toubro up by 1.52%. On the flip side, Dr. Reddy's Lab down by 2.48%, TCS down by 2.28%, Infosys down by 2.22%, Hindustan Unilever down by 2.00% and Adani Enterprises down by 1.95% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 17.16 points or 0.2% to 8,749.57, France’s CAC fell 44.54 points or 0.54% to 8,162.02 and Germany’s DAX was down by 92.26 points or 0.4% to 22,752.24.