Markets trade flat after negative start

Indian equity markets have made negative start and are trading flat in early deals on Wednesday amid geopolitical tensions and sustained FII outflows. Foreign institutional investors (FIIs) sold shares worth a net Rs 1,499.81 crore on Tuesday. Rising crude oil prices also weighted on the domestic sentiments. Crude oil prices surged in internation market overnight, after U.S. President Donald Trump canceled all meetings with Iranian officials and promised protesters that help is on the way. However, there was some encouragement in markets as External Affairs Minister S Jaishankar held a phone conversation with US Secretary of State Marco Rubio focusing on cooperation in areas of trade, critical minerals, nuclear energy and defence. 

On the global front, Asian markets were trading mostly in green despite negative cues from US markets overnight. Japanese index hit record high on expectations that Prime Minister Sanae Takaichi could call for a snap election, likely in February. Back home, on the BSE sectoral front, traders were seen piling up positions in Metal, Energy, Telecom, Basic Materials and Capital Goods, while selling was witnessed in Realty, IT, Consumer Durables, Consumer Disc and Auto.

The BSE Sensex is currently trading at 83602.87, down by 24.82 points or 0.03% after trading in a range of 83288.13 and 83698.19. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.02%, while Small cap index up by 0.22%.

The top gaining sectoral indices on the BSE were Metal up by 1.27%, Energy up by 0.67%, Telecom up by 0.62%, Basic Materials up by 0.57% and Capital Goods up by 0.52%, while Realty down by 0.52%, IT down by 0.28%, Consumer Durables down by 0.21%, Consumer Disc down by 0.20% and Auto down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.56%, NTPC up by 1.07%, Bharat Electronics up by 0.70%, Axis Bank up by 0.69% and Infosys up by 0.30%. On the flip side, TCS down by 1.01%, Asian Paints down by 0.78%, Interglobe Aviation down by 0.63%, Sun Pharma down by 0.58% and Bajaj Finserv down by 0.52% were the top losers.

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran has said that economic growth serves as the most robust and sustainable path to financial inclusion for India. He said ‘when an economy is generating jobs, incomes, markets and demand, people do not need to be forced into the financial system. They enter naturally...because they see opportunities, they invest, because the future looks larger than the present.’ He cautioned that no amount of financial institutions can substitute for what economic growth can provide, so finance is a compliment to growth, not its replacement.

CEA has stated that where livelihoods are stagnant, inclusion becomes fragile, and where livelihoods are expanding, inclusion becomes a self-reinforcing process. So, he said when finance is properly aligned with real economic activity, it can become a powerful catalyst for growth. 

Observing that inclusive finance succeeds when it strengthens real economic activity, not when it becomes an end in itself, he said that under the PM SVANidhi, street vendors, who were hit hardest during the pandemic, used access to working capital not just to survive, but to expand, invest in basic assets, improve margins and build more sustainable businesses. This is what inclusion should mean -- enabling people to grow out of fragility and move from survival trading to more productive operations. He also flagged that financial inclusion that leads to indiscriminate lending destroys its purpose, resulting in stress and over-indebtedness rather than empowerment.   

The CNX Nifty is currently trading at 25734.20, up by 1.90 points or 0.01% after trading in a range of 25638.35 and 25750.45. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.95%, Tata Steel up by 1.17%, NTPC up by 1.01%, ONGC up by 0.98% and Hindalco up by 0.90%. On the flip side, Eicher Motors down by 1.38%, TCS down by 0.99%, Wipro down by 0.93%, Asian Paints down by 0.74% and Cipla down by 0.69% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 873.84 points or 1.63% to 54,423.00, Taiwan Weighted added 229.25 points or 0.74% to 30,936.47, Jakarta Composite gained 83.51 points or 0.93% to 9,031.81, Shanghai Composite strengthened 49.48 points or 1.2% to 4,188.24, KOSPI increased 12.96 points or 0.28% to 4,705.60 Hang Seng advanced 269.53 points or 0.99% to 27,118.00. However, Straits Times fell 5.06 points or 0.11% to 4,802.07.