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Domestic indices trim opening gains; trade flat with positive bias in early deals
May-25-2022

Indian equity benchmarks made optimistic start on Wednesday tracking gains in Asian counterparts. But, soon markets trimmed most of their gains to trade flat with positive bias in early deals. Buying in Bankex, Healthcare and Metal stocks aiding the markets whereas selling in IT, TECK and Consumer discretionary counters dragged the indices down. Initially, sentiments got boost with a report that the country's exports rose by 21.1 percent to $23.7 billion during May 1-21, on account of healthy growth in various sectors, such as petroleum products, engineering, and electronic goods. Though, gains got trimmed as some cautiousness came in as Former World Bank chief economist Kaushik Basu said that even though the fundamentals of the Indian economy are strong, the rise in divisiveness and polarisation in the country is damaging the foundations of the nation’s growth. Some pessimism also came in with report that India was ranked at the 54th place in a global travel and tourism development index, down from 46th in 2019, but still remained on the top within South Asia.

Most of the Asian markets are trading higher despite the mostly negative cues overnight from Wall Street, as traders cautiously await the release the US Fed's minutes from its latest monetary policy meeting later in the day, which may shed additional light on the outlook for interest rates. U.S. President Joe Biden's remarks that he might drop trade tariffs on China also resulted in improved risk sentiment.

Back home, sugar sector stocks were in focus as the government imposed restrictions on sugar exports from June 1, a move aimed at increasing availability of the commodity in the domestic market and curbing price rise. In stock specific movement, Aster DM soared on reporting 52 per cent rise in Q4 net profit at Rs.226.27 crores, as against Rs.105.39 crores for the period ended March 31, 2021.

The BSE Sensex is currently trading at 54137.72, up by 85.11 points or 0.16% after trading in a range of 54115.26 and 54379.59. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.47%, while Small cap index was down by 0.69%.

The top gaining sectoral indices on the BSE were Bankex up by 0.87%, Healthcare up by 0.18%, Metal up by 0.16%, PSU up by 0.04%, Basic Materials up by 0.01%, while IT down by 1.85%, TECK down by 1.43%, Consumer discretionary down by 0.91%, Consumer Durables down by 0.67%, Industrials down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.09%, Nestle up by 1.78%, Ultratech Cement up by 1.75%, Kotak Mahindra Bank up by 1.52% and Bajaj Finserv up by 1.34%. On the flip side, Asian Paints down by 3.14%, TCS down by 2.73%, Tech Mahindra down by 2.50%, Wipro down by 1.59% and HCL Technologies down by 1.57% were the top losers.

Meanwhile, Union Minister Piyush Goyal has said that there is need to focus more on services sector exports and added that it can help boost the country's overall exports further. He also called for the government and the businesses to support each other. He also said the presence of India has been very very noticeable this time in Davos. Referring to the challenges posed by the COVID pandemic, He said that ‘despite supply chains having been strained amid global challenges, we have done exceedingly well in terms of exports and other parameters’.

According to him, a record level of $250 billion of exports came without hospitality and some other key sectors and an extra focus on services sector can help improve the export growth much more. He added that India now needs to look at value-added exports. It is important to bring jobs to the country. He said ‘logistics is one cost where the government is very seriously looking at and if there are any other concerns, the industry may have, we are open to look at each of those’.

He further said ‘we are willing to dedicate senior government officials to oversee large projects. In the larger scheme of things, we all need to support each other to bring scale to the country’. Urging foreign companies to invest in India, he said ‘India has got not only the demographic dividend, a young population, but also a huge talent pool’.

The CNX Nifty is currently trading at 16128.35, up by 3.20 points or 0.02% after trading in a range of 16127.60 and 16223.35. There were 29 stocks advancing against 20 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.66%, Grasim Industries up by 1.85%, Indusind Bank up by 1.85%, HDFC Life Insurance up by 1.78% and Nestle up by 1.57%. On the flip side, Adani Ports & SEZ down by 3.82%, Asian Paints down by 3.55%, TCS down by 2.96%, Tech Mahindra down by 2.85% and HCL Technologies down by 1.97% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 rose 5.86 points or 0.02% to 26,754.00, Hang Seng advanced 128.88 points or 0.64% to 20,240.98, Taiwan Weighted surged 148.63 points or 0.93% to 16,112.26, KOSPI added 19.54 points or 0.75% to 2,625.41 and Shanghai Composite was up by 17.73 points or 0.58% to 3,088.66. On the other hand, Straits Times fell 6.48 points or 0.20% to 3,188.56 and Jakarta Composite was down by 44.93 points or 0.65% to 6,869.21.
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