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Indian equities continued to trade in red in the afternoon session in absence of buying in frontline counters with Sensex and Nifty trading below 60400 and 18050 levels, respectively. Sentiments were dented as World Bank’s report stated that disruptions to supplies of commodities, financial strains, and higher prices are among the impacts of the war in Ukraine that will slow economies in Asia in the coming months. The report forecasts slower growth and rising poverty in the Asia-Pacific region this year as ‘multiple shocks’ compound troubles for people and for businesses. Additional pressure came as government data showed that India’s trade deficit rose 87.5 percent to $192.41 billion in 2021-22 as against $ 102.63 billion in the previous year. Meanwhile, India's finance minister stated that India would continue to purchase crude from Russia as its people required oil at a discount after the surge in global prices. India has already started buying oil from Russia, adding that the transition to gas was challenging as supplies had reduced.

On the global front, Asian markets were trading higher supported by the positive outlook over economic rebound ahead to Wednesday's release of minutes by Federal Reserve. Back home, in scrip specific developments, L&T jumped as its transportation infrastructure business secures various orders from prestigious clients, while HDFC and HDFC Bank shares declined day after merger deal is announced.

The BSE Sensex is currently trading at 60364.35, down by 247.39 points or 0.41% after trading in a range of 60227.36 and 60786.07. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.86%, while Small cap index was up by 1.45%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.03%, Utilities up by 1.58%, Power up by 1.50%, Auto up by 1.45%, Industrials up by 1.44%, while Bankex down by 0.64% and Realty was down by 0.62% were the only losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.97%, ITC up by 1.27%, NTPC up by 1.25%, Mahindra & Mahindra up by 1.20% and TCS was up by 1.08%. On the flip side, HDFC Bank down by 2.59%, HDFC down by 1.77%, Bajaj Finserv down by 1.70%, Reliance Industries down by 1.46% and Bajaj Finance was down by 1.28% were the top losers.

Meanwhile, Minister of State for Defence Ajay Bhatt has said that offset obligations were not fulfilled in 21 defence contracts in the last five years and a total penalty of $43.14 million was levied on firms involved in 16 such procurement deals. He said offset claims worth $2.64 billion have been submitted in 47 contracts till December 31.

Bhatt said under India's offset policy, foreign defence entities, for all contracts worth Rs 2,000 crore or more, are mandated to spend at least 30 per cent of the total contract value in India through procurement of components, transfer of technologies or setting up of research and development activities. However, the offsets are not applicable to procurements under 'fast track procedure' and in 'option clause' cases if the same was not envisaged in the original contract.

He further said the total number of offset contracts in which the vendors have defaulted/non-performed offset obligation during the last five years is 21 with non-performed amount of $2.24 billion till December 31. He said action is taken against the defaulting/non-performing vendors by imposing penalty after following the laid down procedure. And same has been completed in 16 contracts with levying of penalty amounting to $43.14 million till December 31.

The CNX Nifty is currently trading at 18003.35, down by 50.05 points or 0.28% after trading in a range of 17961.10 and 18089.70. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 3.30%, Adani Ports up by 3.02%, Tata Motors up by 2.46%, Titan Company up by 1.97% and Shree Cement was up by 1.94%. On the flip side, HDFC Bank down by 2.67%, HDFC down by 1.83%, Bajaj Finserv down by 1.79%, Reliance Industries down by 1.49% and Bajaj Finance was down by 1.28% were the top losers.

Asian markets were trading higher; Nikkei 225 surged 51.51 points or 0.19% to 27,787.98, KOSPI rose 1.30 points or 0.05% to 2,759.20, Straits Times advanced 15.03 points or 0.44% to 3,432.00 and Jakarta Composite was up by 7.16 points or 0.1% to 7,123.38.

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