Markets in bear grip; Sensex loses over 200 points

Key Indian equity markets are in grip of bears in late afternoon session, with Sensex losing over 200 points, amid weak cues from European markets. In line with the larger peers, the broader indices too traded sluggish in late noon deals, while IT stocks declined the most among sectoral indices on the BSE. Traders got cautious after Reserve Bank Governor Shaktikanta Das said that even though the headline credit demand is growing at a healthy 14 percent, it is not broadbased while those to MSMEs have been muted so far. Das further said the RBI will continue to watch macroeconomic factors and will act timely on the same. Trading sentiments also got hit on the back of slower growth of Services PMI. India’s services sector grew at slower pace, on the back of a slower expansion in new work. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 52 in March from 52.5 in February. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- also slipped to 52.7 in March as against 53.8 in February.

On the global front, European markets were trading in red, as Germany's manufacturing orders decreased sharply in February, defying expectations for a modest increase. The preliminary figures from the Federal Statistical Office showed that factory orders dropped 4.2 percent month-on-month. January's decline was revised to 2.1 percent from 2.6 percent. However, Asian markets were trading in green.

The BSE Sensex is currently trading at 38654.70, down by 222.42 points or 0.57% after trading in a range of 38581.04 and 38939.35. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.51%, while Small cap index was down by 0.61%.

The few gaining sectoral indices on the BSE were Auto up by 0.35%, Healthcare up by 0.20% and Telecom up by 0.06%, while IT down by 1.58%, Energy down by 1.46%, Oil & Gas down by 1.36%, TECK down by 1.27% and Metal down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.31%, Hero MotoCorp up by 1.71%, HDFC up by 1.49%, Bharti Airtel up by 1.47% and Asian Paints up by 0.99%. On the flip side, TCS down by 3.27%, Indusind Bank down by 2.26%, Yes Bank down by 2.25%, HCL Tech. down by 1.98% and Reliance Industries down by 1.72% were the top losers.

Meanwhile, falling to a six-month low, India’s services sector grew at slower pace, on the back of a slower expansion in new work. At the same time, the pace of staff hiring was also the weakest since last September. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 52 in March from 52.5 in February. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services – also slipped to 52.7 in March as against 53.8 in February.

The report found that the rate of expansion in new business placed with services companies eased since February. Growth was curtailed by subdued bookings and competitive pressures. Besides, there was a further rise in backlogs of work, which service providers continued to link to difficulties in obtaining outstanding payment from clients. The pace of increase in backlogs was the second-fastest since October 2017.

On the inflation front, input cost inflation in the service sector eased, while acceleration was seen for services charges. Meanwhile, business sentiment among service providers strengthened to a six-month high. Predictions of greater inbound tourism, marketing efforts and wider product offerings boosted confidence in March.

The CNX Nifty is currently trading at 11588.75, down by 55.20 points or 0.47% after trading in a range of 11559.20 and 11662.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.63%, Indiabulls Housing Finance up by 2.59%, Hero MotoCorp up by 2.04%, Ultratech Cement up by 1.82% and Bharti Airtel up by 1.63%. On the flip side, TCS down by 3.05%, Hindalco down by 2.52%, Indusind Bank down by 2.47%, HCL Tech. down by 2.36% and Yes Bank down by 2.14% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite soared 18.56 points or 0.29% to 6,494.63, Shanghai Composite gained 19.59 points or 0.61% to 3,235.89, Nikkei 225 surged 11.74 points or 0.05% to 21,724.95 and KOSPI was up by 3.26 points or 0.15% to 2,206.53. On the flip side, Straits Times fell 3.85 points or 0.12% to 3,307.42 and Hang Seng was down by 50.07 points or 0.17% to 29,936.32.

All European markets were trading in red; France’s CAC lost 16.61 points or 0.30% to 5,452.30, Germany’s DAX fell 9.88 points or 0.08% to 11,944.52 and UK’s FTSE 100 was down by 41.41 points or 0.56% to 7,376.87.