Volatility continues to hit Indian markets in early noon deals

A volatility continued to hit Indian equity benchmarks, with both Sensex and Nifty now trading in negative terrain, amid selling at Auto, Utilities and Power counters, despite positive cues from other Asian markets. There was anxiety among traders, amid a private report stating that the Reserve Bank of India may delay the expected policy interest rate cuts, but strong demand for bonds from long-term investors such as retirement funds and insurers will ensure that market interest rates are low, especially for the top-rated borrowers. Traders took a note of Financial Services Secretary Vivek Joshi’s statement that increasing Free Trade Agreements (FTAs) would be a key strategy for enhancing India's financial services exports.

On the global front, Asian markets were trading higher, after Japan's industrial production expanded more than initially estimated in March after falling in the previous two months. The final data from the Ministry of Economy, Trade, and Industry showed that industrial production advanced 4.4 percent on a monthly basis, reversing a 0.6 percent decline in February. In the initial estimate, the rate of growth was 3.8 percent. The data showed that shipments rose 4.7 percent from the previous month, and the inventory ratio grew 7.6 percent. Inventories also showed an increase of 1.0 percent.

The BSE Sensex is currently trading at 72916.92, down by 70.11 points or 0.10% after trading in a range of 72721.16 and 73396.75. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.75%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Realty up by 1.22%, Industrials up by 0.98%, Telecom up by 0.88%, TECK up by 0.81% and IT up by 0.71%, while Auto down by 0.76%, Utilities down by 0.42%, Power down by 0.38%, PSU down by 0.31% and Energy down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.84%, Tech Mahindra up by 1.62%, Infosys up by 1.22%, HDFC Bank up by 0.71% and HCL Tech. up by 0.70%. On the flip side, Maruti Suzuki down by 2.59%, Tata Motors down by 1.78%, Power Grid down by 1.68%, SBI down by 1.38% and Nestle down by 1.28% were the top losers.

Meanwhile, the Federation of All India Farmer Associations (FAIFA) in its report titled 'Transformation of India's Agriculture' has said that the number of startups in agriculture and allied sectors has risen to over 7,000 in the last nine years due to a conducive business environment and government support. Before 2014-15, there were less than 50 startups in agriculture and allied sectors. 

According to the report, the Department of Agriculture & Farmers' Welfare (DA&FW) is implementing the 'Innovation and Agri-Entrepreneurship Development' programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem. Five Knowledge Partners (KPs) and 24 RKVY- Agribusiness Incubators (R-ABIs) have been appointed by the Department for incubation of startups and implementation of this programme across the country during 2018-19, which is sufficient to cater to current requirements. The report commended the government's decade-long efforts, acknowledging a comprehensive approach that has borne fruit. From initiatives supporting farmers' income, agricultural insurance schemes and expanded irrigation coverage to promoting organic farming, empowering women farmers, bolstering infrastructure and digitising services, the government has embraced a holistic strategy in championing the cause of the farmers.

It also stated that key policy initiatives like the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and Pradhan Mantri Fasal Bima Yojana (PMFBY) have played pivotal roles in extending financial and income support to farmers. The comprehensive crop insurance policy serves as a vital shield for farmers, offering protection against unforeseeable natural calamities thereby safeguarding their livelihoods and preventing financial ruin.

The CNX Nifty is currently trading at 22174.85, down by 25.70 points or 0.12% after trading in a range of 22105.95 and 22330.00. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.98%, Tech Mahindra up by 1.56%, Infosys up by 1.26%, LTIMindtree up by 1.20% and Tata Consumer Products up by 0.85%. On the flip side, Maruti Suzuki down by 2.60%, Tata Motors down by 1.88%, Power Grid down by 1.73%, SBI down by 1.39% and Bajaj Auto down by 1.39% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 285.87 points or 1.5% to 19,359.58, Jakarta Composite gained 61.32 points or 0.85% to 7,241.15, Shanghai Composite strengthened 3.55 points or 0.11% to 3,123.45, Straits Times rose 25.42 points or 0.77% to 3,314.84, KOSPI increased 22.66 points or 0.82% to 2,753.00, Nikkei 225 surged 534.53 points or 1.37% to 38,920.26 and Taiwan Weighted added 157.05 points or 0.74% to 21,304.26.