Benchmarks trade flat with positive bias in early deals; WPI data eyed

Indian equity benchmarks started Wednesday’s session in green following the broadly positive cues from Wall Street overnight as data showing a smaller than expected increase in U.S. producer prices raised hopes of a 50-basis point interest rate cut by the US Fed in September. They also now await the release of the more closely watched report on US consumer price inflation for July later in the day. Closer home, domestic indices soon turned volatile and are trading flat with positive bias in early deals led by buying in TECK and IT counters. Investors avoided taking any long positions amid the weekly Nifty and Bank Nifty expiry along with the mid-week trading holiday tomorrow (August 15) on account of Independence Day. Also, traders are looking ahead of wholesale inflation data to be out later in the day for more directional cues. 

On the sectoral front, power stocks are in focus as an Icra report stated that the state-owned power distribution companies are facing financial constraints despite improving their aggregate technical and commercial losses. The agency has cited delays in realising payments from state government departments for power supply as one of the reasons for the constrain of discom finances and assigned a negative outlook for the power distribution segment. In stock specific development, SJVN surged following the company’s June quarter results.

The BSE Sensex is currently trading at 79064.05, up by 108.02 points or 0.14% after trading in a range of 78895.72 and 79100.95. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.23%, while Small cap index was down by 0.86%.

The top gaining sectoral indices on the BSE were TECK up by 0.58%, IT up by 0.58%, Auto up by 0.24%, Oil & Gas up by 0.11% and Metal up by 0.08%, while Industrials down by 0.69%, Power down by 0.67%, Capital Goods down by 0.61%, Basic Materials down by 0.51% and Realty down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.48%, TCS up by 1.37%, Tech Mahindra up by 1.09%, SBI up by 1.03% and HCL Technologies up by 0.96%. On the flip side, Ultratech Cement down by 1.50%, Adani Ports & SEZ down by 1.10%, ICICI Bank down by 0.86%, Power Grid Corp down by 0.70% and Tata Steel down by 0.64% were the top losers.

Meanwhile, in a positive development, India and the US have signed a ‘landmark’ agreement that provides a framework for both sides to explore cooperation in the micro, small and medium enterprises (MSME) sector. External Affairs Ministry Spokesperson Randhir Jaiswal said the Memorandum of Understanding (MoU) would enable MSMEs of the two countries to foster trade. 

He added ‘a MoU enables MSMEs of the two countries to participate in global markets, drive innovation, foster trade, and support women entrepreneurs’. The MoU was signed in line with a decision taken during Prime Minister Narendra Modi's visit to the US in June last year. The MoU provides a framework for both sides to discuss issues concerning the MSME sector and explore possibilities of cooperation. 

It envisages the exchange of expertise between the two sides on issues related to improving MSME participation in the global marketplace; cooperation in areas of technology and digital trade, green economy; and trade facilitation. It also provides for the joint conduct of programmes for women entrepreneurs to empower them and facilitate trade partnership between women-owned small businesses of the two countries.

The CNX Nifty is currently trading at 24157.05, up by 18.05 points or 0.07% after trading in a range of 24099.70 and 24196.50. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were TCS up by 1.28%, Mahindra & Mahindra up by 1.14%, HCL Technologies up by 1.04%, Tech Mahindra up by 1.00% and Apollo Hospital up by 0.98%. On the flip side, Hero MotoCorp down by 3.60%, Divi's Lab down by 2.66%, Ultratech Cement down by 1.71%, Adani Ports & SEZ down by 1.50% and ONGC down by 1.30% were the top losers.

Asian markets are trading mixed; Taiwan Weighted jumped 231.2 points or 1.06% to 22,027.77, Jakarta Composite gained 48.93 points or 0.67% to 7,405.57, KOSPI increased 15.53 points or 0.59% to 2,637.03 and Straits Times rose 14.81 points or 0.45% to 3,273.38. On the other hand, Nikkei 225 slipped 74.43 points or 0.21% to 36,158.08, Hang Seng declined 62.63 points or 0.36% to 17,111.43 and Shanghai Composite was down by 10.05 points or 0.35% to 2,857.90.