The key equity benchmarks traded with minor gains in early afternoon trade. The Nifty traded above the 17,900 level after hitting the day's low at 17,824.35 in early trade. Auto shares edged lower after advancing in the past two sessions.
At 12:26 IST, the barometer index, the S&P BSE Sensex, was up 69.32 points or 0.12% to 60,184.80. The Nifty 50 index added 5.20 points or 0.03% to 17,919.35.
In the broader market, the S&P BSE Mid-Cap index fell 0.25% while the S&P BSE Small-Cap index gained 0.23%.
The market breadth was positive. On the BSE, 1892 shares rose and 1439 shares fell. A total of 156 shares were unchanged.
Investors looked ahead to the U.S. consumer price index report due on Thursday for more clues on the rate-hike trajectory. Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession.
US Federal Reserve Chairman Jerome Powell on Tuesday emphasized the need for the central bank to be free of political influence while it tackles high inflation. Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.
Economy:
The World Bank in its latest economic update has said that India's economic growth will slow to 6.6% in the next fiscal year from an expected 6.9% in the current year.
"The slowdown in the global economy and rising uncertainty will weigh on export and investment growth," the World Bank said.
Increased infrastructure spending and "business facilitation measures" will, however, crowd-in private investment and support the expansion of manufacturing capacity, it added.
India is expected to be the fastest-growing economy of the seven largest emerging markets and developing economies, it said.
Beyond the fiscal year ending March 2024, growth in India is likely to slip back towards its potential rate of just over 6%, the bank added.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was up 0.20% to 15.54. The Nifty 25 January 2022 futures were trading at 17,991.05, at a premium of 71.7 points as compared with the spot at 17,919.35.
The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 27.3 lakh contracts at the 19,000 strike price. Maximum Put OI of 30.8 lakh contracts were seen at 18,000 strike price.
Buzzing Index:
The Nifty Auto index fell 0.74% to 12,723.95. The index had advanced 1.51% in the past two sessions.
Sona BLW Precision Forgings (down 4.59%), Tube Investments of India (down 2.73%), MRF (down 2.07%), Samvardhana Motherson International (down 1.97%) and Eicher Motors (down 1.86%) were the top losers.
Among the other losers were Bharat Forge (down 1.84%), Ashok Leyland (down 1.38%), Hero MotoCorp (down 0.63%), Bosch (down 0.61%) and Mahindra & Mahindra (down 0.56%).
Tata Motors added 0.76%. Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, and Ford India (FIPL) had executed a unit transfer agreement on 7 August 2022 for acquisition of Ford India's manufacturing plant situated at Sanand, Gujarat for Rs 725.70 crore. The parties have completed the transaction and TPEML has acquired the Sanand Property and the VM Plant and Machinery.
Castrol India shed 0.44%. The lubricants maker said that it has completed the acquisition of 7.09% stake in ki Mobility Solutions Private Limited on 10 January 2023. ki Mobility is a part of TVS Mobility group and is one of the leading players in the automotive service, maintenance and repair sector in India. With this strategic investment, CIL aims to expand its presence in service and maintenance for both internal combustion engine (ICE) and electric vehicles (EV) and leverage myTVS' digital and operational capabilities.
Craftsman Automation fell 2.30%. The company said that CRISIL Ratings has revised its outlook on the long-term bank facilities of the company to 'positive' from 'stable', while reaffirming the rating at 'CRISIL A+'. Further, the agency has also reaffirmed the company's short-term rating at 'CRISIL A1'.
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