Key benchmark indices trade near neutral lines with negative bias

In volatile trading session, Key benchmark indices traded near neutral lines with negative bias in late afternoon session. Traders were seen piling up positions in Oil & Gas, Energy and Telecom sectors, while selling was witnessed in Metal, Capital Goods and Banking sectors. Traders took note of report that government will extend again the validity of the current foreign trade policy (FTP), which provides a road map for boosting external commerce in goods and services, by six months through March 31, 2023. The decision was taken after demands from various industry associations and state-backed export promotion councils due to the uncertain external environment.  On the global front, Asian markets were trading mostly in green despite heavy selling on Wall Street put the Dow Jones Industrial Average into what's known as a bear market.  European markets were trading higher as investors hunt for bargains in beaten-down stocks.

The BSE Sensex is currently trading at 57,126.33, down by 18.89 points or 0.03% after trading in a range of 56950.52 and 57704.57. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.22%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.72%, Energy up by 1.47%, Telecom up by 0.88%, TECK up by 0.73% and FMCG was up by 0.72%, while Metal down by 0.76%, Capital Goods down by 0.53%, Bankex down by 0.30%, Consumer Durables down by 0.23% and Industrials was down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.94%, Indusind Bank up by 1.58%, Reliance Industries up by 1.45%, Dr. Reddy's Lab up by 1.36% and Nestle up by 1.09%. On the flip side, Tata Steel down by 2.65%, Titan Company down by 1.99%, Kotak Mahindra Bank down by 0.93%, ICICI Bank down by 0.77% and Axis Bank down by 0.75% were the top losers.

Meanwhile, Moody's Investors Service in its latest report has said that deepening economic relationships among members of the Quad to increase technological and energy security amid China's growing influence in the Asia-Pacific region could have long-term credit implications resulting from supply-chain and trade reconfigurations. In particular, India stands to benefit from greater trade and investment flows, it said, although, at a gradual pace due to regulatory hurdles.

Report mentioned ‘It (India) will likely be a growing destination market for goods from fellow Quad countries, while the US and Japan will continue to be major sources of foreign direct investment in India's services, telecommunications and software sectors.’ It said that Australia's presence will grow due to a free-trade agreement with India.

Besides, it stated the Quad's effects on geopolitical tensions could alter capital flows and international business activity. For instance, any increase in member countries' tensions with China could drive companies to diversify their production centres in Asia-Pacific. Moreover, it said ‘But these shifts may occur only slowly because Quad governments will be cautious not to antagonize China, given their existing deep commercial ties. It added while existing regional frameworks will continue to underpin trade flows, the greater economic focus of Quad member countries - Australia, India, Japan and the US - will drive some trade shifts.

The CNX Nifty is currently trading at 17,015.00, down by 1.30 points or 0.007% after trading in a range of 16942.35 and 17176.45. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 3.09%, Eicher Motors up by 2.26%, Cipla up by 2.06%, Power Grid up by 2.04% and Tata Consumer up by 1.95%. On the flip side, Tata Steel down by 2.50%, Hero MotoCorp down by 2.45%, Titan Company down by 1.98%, Apollo Hospital down by 1.41% and SBI Life down by 1.12% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 140.32 points or 0.53% to 26,571.87, Taiwan Weighted strengthened 48.40 points or 0.35% to 13,826.59, Shanghai Composite gained 42.63 points or 1.4% to 3,093.86, Hang Seng increased 5.17 points or 0.03% to 17,860.31 and KOSPI was up by 2.92 points or 0.13% to 2,223.86. On the flip side, Straits Times trembled 13.76 points or 0.43% to 3,168.21 and Jakarta Composite was down by 15.05 points or 0.21% to 7,112.45.

European markets were trading higher, UK’s FTSE 100 increased 12.31 points or 0.18% to 7,033.26, France’s CAC increased 47.13 points or 0.82% to 5,816.52 and Germany’s DAX was up by 95.77 points or 0.78% to 12,323.69.